Conglomerate Aboitiz Equity Ventures Inc. said Tuesday it is leaving the Sri Lanka animal feeds business with the sale of its 100-percent stake in Gold Coin Feed Mills (Lanka) Limited.
AEV said in a disclosure to the stock exchange Gold Coin Management Holdings Pte. Ltd., along with Glen Arbor Holdings (Singapore) Pte. Ltd., signed a share sale and purchase agreement with New Anthoney’s Farms (PVT) Ltd. over the sale and disposition of 100-percent equity interest GCFL.
The company did not disclose the value of the transaction.
AEV said the exit from Sri Lanka is aligned with its thrust to expand its animal feeds business in other parts of Southeast Asia and China.
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.
The sale is expected to be completed by the end of 2022.
AEV also disclosed that it filed with the Securities and Exchange Commission an application for the planned P12-billion bond offering.
The bonds consist of P7.45 billion to be issued from its P30-billion shelf registration program registered with SEC in 2019 and up to P4.55 billion to be issued from the new P30-billion shelf registration program.
AEV said it would use the proceeds from the fund raising activity to partially fund the acquisition of GMR-Megawide Cebu Airport Corp. and the repayment of certain outstanding bonds of AEV.
AEV plans to issue the bonds in the fourth quarter, subject to market conditions.
The bonds will be listed on the Philippine Dealing and Exchange Corp.
AEV said the bonds obtained a credit rating of PRS Aaa, with a stable outlook, from the Philippine Rating Services Corp.
Obligations rated “PRS Aaa” are of the highest quality with minimal credit risk, an indication that the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
A stable outlook, on the other hand, means that the rating is likely to be maintained or to remain unchanged in the next 12 months.