Feed mill acquisition makes Aboitiz group bigger than Ayala
Without so much fuss, Aboitiz group has become a larger conglomerate than the Ayalas with the news that AEV subsidiary Pilmico Foods took over Zuellig feed mill empire.
“They used to be called the Ayalas of Cebu, but with last week’s acquisition of the Zuellig feed mill empire, the Aboitiz clan have overnight obtained a bigger regional footprint than their Makati counterpart,” Victor Agustin wrote in his column in Philippine Star.
“Ironically, instead of celebrating, market punters on Friday even sold down Aboitiz Equity Ventures, on news that AEV subsidiary Pilmico Foods was paying $333.8 million (about P17.86 billion) cash, to be funded entirely by foreign bank borrowings amid rising interest rates and weakening regional currencies,” he added.
To be specific, Pilmico International Pte Ltd. has acquired a majority stake in one of Asia’s largest privately-owned agribusiness corporations, Gold Coin ManagementHoldings Limited (Gold Coin), as it expands its animal feeds business in the Asia Pacific region.
Pilmico International is a wholly owned subsidiary of AEV through its Singapore-based holding entity, AEV International Pte Ltd.
When the news broke, AEV closed Friday at P50.80, 3.79 percent lower from Thursday, and even deeper than the 52-week low of P52.45 from a year-long high of P79.
Agustin said the balance of 25 percent in Gold Coin will remain with Peter Zuellig, whose Golden Springs Group’s investment portfolio also include the Parazelsus pharmaceutical conglomerate in South Asia and Regal Springs, a producer of farmed tilapia fish in Indonesia, Mexico, and Honduras whose produce are sold in Costco warehouse chain and Kroger supermarket conglomerate in the United States.