First Pacific takes control of Roxas Holdings

MANILA, Philippines–Hong Kong-based conglomerate First Pacific Co. Ltd. has strengthened its foothold in the sugar and ethanol business by taking the majority control of publicly listed Roxas Holdings Inc.

In a statement on Friday, RHI said First Pacific had raised its interest in RHI to 50.9 percent from 34 percent by buying the latter’s treasury shares worth P1.7 billion.

RHI said 241.78 million treasury shares were sold to a unit of First Agri Holdings Corp. (FAHC), a subsidiary of First Pacific (FP), at P7 per share. Bundled with this was the purchase by FP—which is led by businessman Manuel V. Pangilinan—of 35 million additional shares held by RHI group chair Pedro Roxas and related parties.

For its part, Roxas & Co. Inc. increased its equity investments in RHI, buying 33.1 million shares or P232 million from the market to maintain a 30-percent control.

The additional P1.7 billion equity from FP raised RHI’s total equity by 25 percent from P6.93 billion to P8.63 billion.

In a statement, Roxas said RHI would use the additional equity for plant upgrades, possible mergers and/or acquisitions and diversification of its revenue and income base by expanding its ethanol business and developing power co-generation.