First Pacific raises P2.16B from Victorias exit

HONG Kong-based First Pacific Co. Ltd. has raised a total of P2.16 billion from the sale of a total of 14.8 percent stake in sugar miller and refiner Victorias Milling Co.

Notwithstanding the asset disposal, First Pacific said on Thursday that it remained committed to the Philippine sugar industry through its investment in Roxas Holdings Inc., a leading sugar and ethanol producer also listed on the Philippine Stock Exchange.

“We are focusing our investment in the Philippine sugar industry on RHI and preparing for
its rights issue announced earlier,” First Pacific managing director Manuel Pangilinan said.

RHI’s board earlier approved a rights offering of common shares to all shareholders. The offer size, entitlement ratio and offer price have not been set.

First Pacific said it had sold out of VMC in two blocks, the first of which consisted of 300 million shares bought back by VMC itself at P5 each or for a total price tag of P1.5 billion. The Lucio Tan group, through a subsidiary, has also acquired another 131.9 million likewise at P5 per share.

To recall, the Lucio Tan and First Pacific groups both scrambled for additional shares in VMC in previous years.  While the Lucio Tan group was the controlling shareholder for many years through shares held by Tanduay Holdings and Philippine National Bank, Pangilinan’s group gained interest in recent years, seen in line with First Pacific’s thrust to invest in agribusinesses.

VMC was one of the first companies to seek debt relief during the Asian currency crisis but it was able to turn around using a creditor-driven rehabilitation framework. Its shares resumed trading on the Philippine Stock Exchange in May 2012, ending the lack of liquidity and attracting new investors.

In the last three years, VMC has embarked on a program to pay ahead of maturity all loan obligations under the rehabilitation plan approved by the Securities and Exchange Commission. On May 31, 2013, VMC fully paid in advance its restructured loans in the amount of P4.4 billion. VMC has also fully redeemed the convertible notes in the hands of its original noteholders.