Metro Pacific Investments Corp. (MPIC) is acquiring P5.32 billion worth of stake in listed coconut firm Axelum Resources Corp. (ARC)
MPIC said the acquisition – which comprises 1.39 billion in combined shares of secondary common shares and primary redeemable preferred shares – buttresses its promise to become a serious player in the agricultural field, following its investment in the dairy sector last year.
“The north star of our agriculture business is helping our country achieve food security. This investment into Axelum will mean more income opportunities for coconut farmers, as well as a broader landscape for Philippine agriculture,” said Manuel Pangilinan, MPIC chairman.
MPIC shares closed up P0.12 apiece to P4.15. Axelum shares meanwhile closed down P0.18 to P3.32.
Axelum’s products are sold in both the domestic and international markets, supplying to food and beverage companies, confectioneries, bakeries, supermarkets and grocery store chains, and other establishments around the world.
“They are widely distributed in the United States, Canada, Australia, New Zealand, Eastern Europe, Middle East, Japan, and some countries in Asia,” MPIC said.
MPIC said t through its agriculture arm – Metro Pacific Agro Ventures Inc. (MPAV) – it aims to nurture a higher level of patronage of these products by local consumers.
“The Philippines enjoys global renown for its coconut products. Axelum has had an impressive history–having helped establish the country as the world’s leading producer of high-quality coconut products,” said Jovy Hernandez, MPAV president.
“We at MPAV are eager to work with Axelum not only to strengthen their international business but also to develop the domestic market and support our local coconut farmers,” Hernandez said.
Hernandez said MPAV continues to look for other opportunities in the agricultural sector while aiming to achieve a wider presence in the dairy industry.
Pangilinan said: “This venture in agribusiness affirms MPIC’s resolve to be the largest catalyst for a Sustainable Philippines to achieve food security and ultimately food independence. It is also aligned with the efforts of both MPIC and ARC to contribute to the United Nations Sustainable Development Goals , particularly Goal 2: End hunger, achieve food security, improve nutrition and promote sustainable agriculture,” Pangilinan said.
