ABOITIZ subsidiary Pilmico International Pte. Ltd. has entered the international market after signing a partnership with Vietnam's VinhHoan Corp. (VHC).
The Share Sale and Purchase Agreement allowsPilmico International to acquire from VHC a 70-percent equity stake in VinhHoan 1 Feed JSC (VHF).
Pilmico will purchase the remaining 30 percent within five years at a pre-agreed price set out in the agreement. The purchase price for the entire transaction is approximately $28 million. The transaction is expected to close in July 2014.
VHF is the fourth largest aqua feed producer in Vietnam. In the Philippines, Aboitiz Equity Ventures (AEV), through its food subsidiary, Pilmico Foods Corporation (Pilmico), manufactures and sells flour, feeds and their by-products.
Pilmico's biggest feed and flour plants are located in Iligan City.
Truong Thi Le Khanh, chair of VHC commented: "Pilmico is a highly reputable feed producer and we look forward to working closely with Pilmico in the future. VHC and Pilmico will conduct joint research in feed formulation in order to produce the highest quality pangasius products to our customers worldwide."
Sabin Aboitiz, president and CEO of Pilmico, for his part, noted: "We are delighted to have this opportunity to expand our feed business and to enter Vietnam with such a strong and well respected partner as VHC."
Business Development Asia (HK) Ltd (BDA) acted as financial advisor and Honor Partnership Law Company Limited acted as legal advisor to VHC while Indochina Capital Corporation acted as financial advisor and Gide LoyretteNouel A.A.R.P.I. acted as legal advisor to Pilmico.
Founded in 1997 and listed on the Ho Chi Minh Stock Exchange, VinhHoan Corporation is the largest producer and exporter of pangasius in Vietnam.
VHC has operations in feed milling, farming processing, byproduct and exporting. VHC's expertise lies with the production of high quality pangasius fillet and high value-added pangasius-derived products such as collagen and gelatin. VHC exports its products to various countries across North America, Europe and Asia.
VinhHoan 1 Feed JSC is a leading and trusted supplier of aqua feed based in Dong Thap, Vietnam. Founded in 2007, it operates a 130,000 tons per year aqua feed facility producing primarily pangasius feed. Its R&D team operates a pilot farm facility to continuously improve pangasius health and productivity.
Aboitiz Equity Ventures, Inc. (AEV) is the publicly listed holding and investment company of the Aboitiz Group with major investments in power, banking, food, and land development. The company traces its roots to the late 19th century as a hemp trading business in Ormoc, Leyte. Today, AEV is recognized as one of the best managed companies in the Philippines and in the region, and is acknowledged for its good corporate governance.
Pilmico Foods Corp., the food subsidiary of Aboitiz Equity Ventures, is one of the Philippines' largest flour milling companies. Since 1962 the company has been providing world-class wheat flour and wheat by-products and has been ranked among the top three domestic flour producers in the country.
In 1998, through its wholly-owned subsidiary, Pilmico Animal Nutrition Corporation, the company has ventured into feeds and swine business. Equipped with technical expertise and an excellent herd health care program, the company is also a strong player in the production of high nutrition animal feeds and swine production.