Conglomerate Aboitiz Equity Ventures Inc. said Monday it signed a $338-million loan agreement with four foreign banks to finance the acquisition of a controlling stake in Gold Coin Management Holdings Ltd., Asia’s largest privately-owned agribusiness company.
Aboitiz Equity said in a disclosure to the stock exchange wholly-owned subsidiary AEV International Pte. Ltd. signed a $338-million facility agreement with DBS Bank Ltd., Mizuho Bank Ltd., MUFG Bank Ltd. and Standard Chartered Bank.
“The proceeds of the loan will be used to finance the acquisition of 75-percent equity interest in Gold Coin Management Holdings Limited by Pilmico International Pte. Ltd., which is also a wholly-owned subsidiary of AEV,” the company said.
No other details were provided, including the terms of the loan facility.
Aboitiz Equity announced Friday unit Pilmico International signed an agreement with British Virgin Islands-based Golden Springs Group Ltd. to acquire a 75-percent equity interest in Gold Coin for $334 million.
The acquisition will enable Aboitiz Equity to significantly expand its animal feeds business in the Asia-Pacific region. It will also add 3 million tons of volume to the group’s total feeds production capacity.
Singapore-based Gold Coin is a major producer of animal feeds and operates 20 production facilities, employing over 3,000 people across 11 countries in Asia.
The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region.
Gold Coin offers a wide range of products for both the livestock and the aqua industries, including young animals and hatchery feed, premixes, concentrates and compound feed.
Gold Coin generated net revenues of S$751million in 2017.
Pilmico managed to close the deal after it was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from GSG.
Pilmico first ventured outside the Philippines in 2014 when it acquired 70 percent of Vinh Hoan Feeds, one of Vietnam’s major aqua feed manufacturer.
It bought an additional 15 percent stake in VHF in 2017, boosting its stake to 85 percent. It also purchased 70 percent in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.