Century Pacific completes purchase of unit for P4.5B

LEADING canned food producer Century Pacific Food Inc. (CNPF) has sealed its P4.5-billion acquisition of an affiliate company in General Santos that produces high value coconut products for both local and foreign markets.

In a disclosure to the Philippine Stock Exchange, CNPF said it had signed the share purchase agreement—the final document—to acquire 100 percent of Century Pacific Agricultural Ventures Inc. (CPAVI).

The purchase of CPAVI—which is engaged in integrated coconut production—is seen paving the way for the listed company to ride on the global trend toward healthy and organic coconut products.

Earlier, CNPF shareholders approved this acquisition in a special stockholders’ meeting.

Shareholders also earlier approved the listing of these newly issued shares on the PSE.

It was earlier estimated that this consolidation of the coconut enterprise into its books would increase CNPF’s 2016 earnings by 7-8 percent and improve net profit margins.

The group believes that healthy and organic coconut products—for which there is rising demand in western countries like the United States and Europe—would be an area where Philippine industry could be competitive in.

Established in August 2012, CPAVI operates an integrated coconut facility, whose primary products are organic-certified, and conventional coconut water, desiccated coconuts and virgin coconut oil.

The coconut water and virgin coconut oil are sold to global brands and retailers in their respective categories. Other products include copra, coco meal and coco shells, which are sold to the domestic market. It also has other coconut-based products under development.