AEV buys 70% OF Vietnamese animal feeds maker

Conglomerate Aboitiz Equity Ventures Inc. (AEV) has expanded its animal feeds business in Vietnam with the acquisition of a controlling stake in Europe Nutrition Joint Stock Co. (Eurofeed).

Through wholly owned subsidiary Pilmico International Pte., AEV is buying 70 percent of Vietnam-based Eurofeed for $3.7 million.

In a disclosure to the Philippine Stock Exchange on Monday, AEV said its board has approved the acquisition, which was based on enterprise value less debt.

The sellers are Le Binh Hung and Nguyen Thi Ly.

The deal is still subject to a closing audit review, the execution of a shareholders’ agreement, delivery of the corresponding amended investment certificates and other corporate documents to Vietnam authorities.

In AEV’s recent financial report, it was stated that Pilmico had allocated P1.7 billion in capital spending this year in support of various initiatives for its flour, feeds and farms divisions, as well as “pursuing opportunities in the region.”

To further grow and strengthen its feeds business in the Philippines, Pilmico had also planned to expand its feedmill capacity in Iligan and Tarlac.

“The feeds business will increase foothold in the feeds industry by growing animal feeds related businesses in the Philippines and export its feed products in Vietnam, Indonesia, and the Pacific,” the report said.

“Internationally, Pilmico VHF will operationalize a new aqua feed mill in Vietnam and look into exporting its aqua feeds to Asean (Association of Southeast Asian Nations) and Africa. Moreover, the company will also actively pursue other opportunities in the region through mergers and acquisition.” —DORIS DUMLAO-ABADILLA