MANILA, Philippines—The group of businessman Manuel V. Pangilinan is keen on scaling up its interest in the local sugar industry by seeking a foothold in the country’s biggest sugar firm, Victorias Milling Corp.
Inquirer sources said Pangilinan’s group was interested in buying into VMC with the help of the Metrobank group of tycoon George Ty. An initial 7-percent block long held by the Metrobank group has already been committed to Pangilinan’s group, the sources said.
But as Pangilinan’s group aims for the controlling stake whenever it invests in any company, it is seen scouting for other blocks in the sugar firm.
The Metrobank group has long held shares in VMC as one of the latter’s original creditors before undergoing a rehabilitation program. The group’s stake in VMC is broken down as follows: 2.94 percent held through Global Business Bank (absorbed by the parent bank in early 2002), 2.48 percent through parent bank Metropolitan Bank and Trust Co. and 1.9 percent through thrift banking arm Philippine Savings Bank, based on the latest VMC disclosure of top 100 stockholders.
On Monday, Pangilinan told reporters at the sidelines of the signing of the concession agreement for the automated collection fare system project with the Ayala group that his group was looking at several opportunities in the sugar industry but he declined to name any targeted company.
The First Pacific group led by Pangilinan entered the Philippine sugar industry last year with the acquisition of a 31-percent interest in Roxas Holdings, the country’s third-biggest sugar refiner and largest sugar miller for P2.23 billion. The investment was made through First Pacific Natural Resources Holdings BV.
On Friday last week, about 162.8 million shares of VMC were traded through two block transactions at the Philippine Stock Exchange at a price of P4.38 a share, 19-percent higher than the previous day’s closing price of P3.68 per share. The P713-million transactions were done through First Metro Securities.
It remains to be seen whether this same block had already been transferred to any company under Pangilinan’s group. Any substantial change in ownership (above 5 percent) is required to be reported to securities regulators within five days.
The Lucio Tan group controls a significant block in VMC. The taipan’s group is also seen making a move to buy more shares from the open market in what stock pundits expect as a consolidation of control in VMC, which is a key sugar supplier to the group’s beverage unit Tanduay Distillery.