Cargill investing $30.4M in PH agriculture firm

Agrinurture Inc. (ANI) has secured a $30.4-million investment that will help it expand its farming activities, company president and CEO Tony L. Tiu said in a phone interview.

The amount will come from Black River Capital Partners Fund (Food) LP, a fund managed by global asset management company Black River Asset Management LLC, in exchange for a 28.11-percent stake in ANI.

Tiu said ANI had accepted a term sheet from Black River, which is a subsidiary of Cargill Inc.

“This is Black River’s first investment in a Philippine company,” Tiu said.

Tiu said the investment from Black River would fund ANI’s efforts to expand farming activities and cold storage facilities all over the Philippines.

“This will boost our production of banana, mango, vegetables and rice,” Tiu said.

Earlier on Monday, ANI disclosed to the Philippine Stock Exchange that Black River intended to acquire a 28.11-percent equity in the Philippine company “for and in consideration of $30.45 million subject to, among other things, the conduct of a legal, tax, financial and ESG due diligence.”

The disclosure said that both parties have 60 days from September 30 to formalize the structure for Black River’s investment and  execute the formal agreement.

US-based Cargill is a world leader in commodities.

ANI is currently building a $5-million coconut water processing plant in Pili, Camarines Sur, to supply American beverage brand Vita Coco.

The company also announced plans to open in the Philippines Tully’s Coffee shops (a leader in the fast-growing single serve coffee market in the US). ANI is also acquiring 51 percent of The Big Chill, which sells beverages and food products under the brands “Big Chill,” “Fresh Bar,” “C’Verde,” and “Canefusion.”