August 11, 2017

Philippine group to acquire Vietnam feed miller

Through wholly-owned subsidiary Pilmico International Pte., Aboitiz Equity Ventures Inc. (AEV), through its wholly-owned subsidiary Pilmico International Pte., is buying 70% of Vietnam-based Europe Nutrition Joint Stock Co. (Eurofeed) for US$3.7 million, the Inquirer reported.

The deal is subject to a closing audit review, the execution of a shareholders' agreement, delivery of the corresponding amended investment certificates and other corporate documents to Vietnam authorities.

According to AEV's recent financial report, Pilmico had allocated P1.7 billion (US$30 million) in capital spending this year to support its flour, feeds and farms divisions, as well as "pursuing opportunities in the region."

Regional opportunities the report cited included the export of Pilmico's feed products to Vietnam, Indonesia, and the Pacific.

"Internationally, Pilmico VHF will operationalise a new aqua feed mill in Vietnam and look into exporting its aqua feeds to Asean (Association of Southeast Asian Nations) and Africa. Moreover, the company will also actively pursue other opportunities in the region through mergers and acquisition," the report added.