Aboitiz Equity earmarks $200M for Gold Coin

Conglomerate Aboitiz Equity Ventures Inc. expects to invest as much as $200 million in the next two to three years to expand and upgrade the factories of Asia-Pacific animal feeds manufacturer Gold Coin Management Holdings Ltd., its single largest overseas business to date.

AEV chief financial official Manuel Lozano said in an interview that the acquisition of Gold Coin was “quite exciting” for the group but in the next two to three years, the focus would be its integration into the group, specifically, into agri-business unit Pilimco Foods Corp.

Lozano said the group was projecting to make additional investment of $100 million to $200 million, depending on actual requirements, to expand Gold Coin and make the business more efficient. “Some of it is for rehabilitation. Some, for expansion,” he said.

Gold Coin is a major producer of animal feeds and operator of 20 livestock and aqua feed mills across 11 countries in Asia-Pacific. Established in Singapore in 1953, Gold Coin is a pioneer in animal nutrition and the manufacturing of scientifically balanced animal feed in Asia. It is one of the largest privately owned agribusinesses in the region, employing over 3,000 people throughout its 20 production facilities.

“We’re still looking for acquisition opportunities in related businesses,” he said.

The acquisition could be other forms of animal nutrition, for instance more feeds or the same business in areas where the group would like to expand its footprint.

“It could be a geographic fit for us, like in Vietnam, we have more (operations) on the south, so we (could) get more on the northern part, either the same feeds or it could be other animal feeds or on the R&D (research and development) side of it,” he said.

The additional investment in Gold Coin could be funded by borrowings or internally generated cash, he said.

Last year, the Aboitiz group signed a $334-million deal to acquire 75 percent stake of Gold Coin from British Virgin Islands-based Golden Springs Group Ltd., led by the Zuellig group.