Instant noodle and biscuit maker Monde Nissin Corp. said Tuesday it is investing in a soon-to-be formed startup company that will explore opportunities in new business and categories.
Monde Nissin said in a disclosure to the stock exchange it would acquire a 70-percent stake in Amico Innovations Inc. for P17.5 million.
Amico is now in the process of being incorporated and is in the final stages of registration with the Securities and Exchange Commission.
Amico will focus on a broad range of commercial activities, including importing, exporting, repacking, processing, buying, selling, marketing, distributing and trading various goods and merchandise.
Monde Nissin said the move to invest in Amico is part of the group’s strategy to explore start-up opportunities and diversify its business interests.
“This investment is expected to enhance Monde’s engagement in emerging markets and sectors, though its immediate impact on Monde’s overall business operations is not anticipated to be significant,” Monde Nissin said.
Under the plan, Monde Nissin will subscribe to 87,500 of the outstanding capital stock of Amico at subscription rate of P200 per share for a total of P17.5 million. The subscription is set to be finalized by Sept. 30, 2024.
Monde Nissin has two core businesses namely, the Asia-Pacific branded food and beverage (F&B) business and the meat alternative business.
The Asia-Pacific branded food and beverage business is engaged in the production instant noodles, biscuits and other products such as beverages, baked goods and culinary aid. Some of the brands under this business include ‘Lucky Me!’; ‘SkyFlakes’; ‘Fita’; and ‘Mama Sita’s’.
The meat alternative business, meanwhile, is under the ‘Quorn’ brands.
Monde Nissin’s core net income attributable to shareholders increased by 45.5 percent to P5.1 billion in the first half of the year from P3.4 billion recorded in the same period last year. Consolidated revenue in the first half increased 3.1 percent to P40.1 billion from P38.9 billion a year ago.
