MANUEL V. Pangilinan
MANILA, Philippines—The group of businessman Manuel V. Pangilinan has gained a foothold in Victorias Milling Corp. with the purchase of an initial 5.8 percent stake in the country’s largest sugar company, mostly from the Metrobank group.
In a regulatory filing on a change in beneficial ownership, privately held Metro Pacific Holdings Inc. (MPHI) reported that it had acquired a direct interest in VMC equivalent to 136.99 million common shares.
In a separate disclosure to the Philippine Stock Exchange, Metropolitan Bank and Trust Co. said it had sold 124.38 million shares in VMC on March 31. Industry sources said this was part of the banking group’s commitment to sell its interest in VMC to Pangilinan’s group.
At the same time, the banking group is helping Metro Pacific acquire other blocks of VMC shares from the open market, industry sources said.
For its part, the MPHI disclosure said the first block of 33.39 million shares was acquired on April 2 at between P4.28 and P4.38 per share equivalent to 1.41 percent of VMC. Additional 103.6 million shares were bought on April 4 at between P4.38 and P4.50 per share, raising direct interest to 5.768 percent.
MPHI is chaired by Pangilinan while the board members are Napoleon Nazareno (PLDT president), Benny Santoso, Augusto Palisoc Jr., Antoni Salim (principal investor at First Pacific group), Ray Espinosa, Jose Ma. K. Lim (Metro Pacific Investments president) and Antonio Picazo.
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.
Pangilinan’s interest is seen complementary to the First Pacific group’s regional food business through PT Indofood Sukses Makmur Tbk, one of the biggest food companies in Indonesia.
With Pangilinan’s entry, the group of tycoon Lucio Tan has likewise moved to increase its interest in VMC, a key supplier to the group’s beverage unit Tanduay Holdings.
Prior to MPHI’s disclosure, LT Group Inc. (LTG) had said it had acquired additional shares in VMC, thereby raising its holdings to 14.8 percent from 7.4 percent. The shares were bought from Philippine National Bank and China Banking Corp.
VMC, which is undergoing a creditor-driven rehabilitation program, is working to cut its debt stock and soon exit court-assisted rehabilitation. The sugar company is also hoping to strengthen its balance sheet and make it more globally competitive by 2015 with the creation of the ASEAN (Association of Southeast Asian Nations) economic community.