Aboitiz Equity Ventures Inc. (AEV) on Tuesday said it has struck a deal to exit the Sri Lankan market as part of its general direction to grow its animal feeds business in Southeast Asia and in China.
In its disclosure, AEV said Gold Coin Management Holdings Pte. Ltd. together with Glen Arbor Holdings (Singapore) Pte. Ltd. have entered into a share sale and purchase agreement with New Anthoney’s Farms Ltd. for the sale and disposition of 100 percent equity interest in Gold Coin Feed Mills (Lanka) Limited.
“Following the signing of the agreement and subject to completion of conditions precedent, the transaction is expected to be completed by the year-end of 2022,” the company said.
GCFL is a company engaged in the manufacturing and distribution of animal feed products in Sri Lanka, while Glen Arbor and Gold Coin are Singapore-based subsidiaries of AEV, whose shares are held through Pilmico International Pte. Ltd.
AEV, meanwhile, has filed an application with the Securities and Exchange Commission (SEC) for the issuance of fixed-rate retail bonds with an aggregate principal amount of up to P12 billion, inclusive of oversubscription.
The application consists of the issuance of the fourth and final tranche of fixed-rate bonds amounting to P7.45 billion from its P30-billion shelf registration program, which was registered with the SEC on June 3, 2019. It will also include P4.55 billion in oversubscription option, which will come from its new shelf registration program amounting to P30 billion.
The proceeds from the bonds are intended to partially fund AEV’s equity contribution to its wholly owned subsidiary, Aboitiz InfraCapital, Inc., which will use such amount to acquire interest in GMR-Megawide Cebu Airport Corp. and the repayment of certain outstanding bonds of AEV.
The debt is expected to be offered to the general public during the fourth quarter. AEV intends to list the debt on the Philippine Dealing and Exchange Corp.
The said paper received a credit rating of PRS Aaa, with a Stable Outlook from the Philippine Rating Services Corp. It also maintained the issue credit rating of PRS Aaa, with a Stable Outlook, for AEV’s total outstanding bonds.
In April, AEV announced that it has allocated P69 billion in capital expenditures (capex) for the year. Of the amount, 42 percent will go to capital-intensive infrastructure projects.
Last year, the company spent some P27 billion in capex, half of which was allocated for the power business.
This year, however, it is allocating some P28 billion for its power business, still more than the previous year’s entire capex.