Businessman Antonio Tiu is bent on re-energizing his listed agribusiness firm AgriNurture Inc. by investing P2.6 billion in a new corn plantation and possibly taking in a strategic investor.
Tiu said in a news briefing Wednesday the company would start developing 20,000 hectares in Bansalan, Davao del Sur for corn production.
He said ANI had obtained P2 billion in long-term loan from the Development Bank of the Philippines to fund the project. The company will invest another P600 million, representing 30-percent equity in the project.
“This will be a game-changer for the company as this will provide a new growth cycle for group,” Tiu said.
Tiu said the project, which would start this year, would double the company’s revenues to P10 billion from P5 billion in 2021.
The corn plantation will have a production capacity of 4 to 5 metric tons per hectare or an annual output of 200,000 MT.
The company intends to ramp out annual production to 1 million MT over the next three years.
Tiu said while rice is the main staple of most Filipinos, corn rice is a good alternative because it is cheaper and healthier. It has more protein, less carbohydrates and has a lower glycemic index.
Tiu said AgriNurture received offers from both local and foreign investors to be a strategic partner, but did not identify them. He said he was willing to give a minority interest to the strategic investor.
Tiu recently stepped down as president of two listed firms—Ever-Gotesco Resources and Holdings Inc. and Philippine Infradev Holding Inc., as he planned to focus aggressively on growing ANI.
Tiu said there were many opportunities coming up in the agriculture sector, given the Marcos administration’s thrust to revitalize and improve the domestic farm sector.
Tiu said he would continue to own minority interests in both Ever-Gotesco and Philippine Infradev.
The ongoing projects of Ever-Gotesco and Philippine Infradev, particularly the Makati Intra-city Subway project will also continue despite his resignation.
The share price of ANI rose 0.71 percent Wednesday to close at P7.07.