RHI sells La Carlota assets to URC
Listed sugar and ethanol producer Roxas Holdings Inc. (RHI) announced on Thursday the sale of its assets in La Carlota City, Negros Occidental province, to food conglomerate Universal Robina Corp. (URC).
The deal is expected to enable RHI to pare down its debts. URC, for its part, expects the acquisition of RHI’s facilities to help it improve and expand its operations.
The transaction, which amounted to P4.89 billion, covers the sale to URC of RHI’s sugar mill and ethanol plant in La Carlota City and its interests in certain business concerns, including Najalin Agri-Ventures Inc.
To recall, the sugar company initially tried to sell its plant at Central Azucarera Don Pedro Inc. (Cadpi) in Nasugbu, Batangas province, to URC but this was blocked by the Philippine Competition Commission over monopoly concerns.
RHI executive vice president and CFO Celso T. Dimarucut said the sale would allow the company “to fully recover and flex its financial muscle.” The paring down of the company’s existing debts is expected to result in a stronger balance sheet and allow RHI to rebuild its operations in Batangas.
Moving forward, RHI chair Pedro Roxas said the company would “focus its resources on Cadpi to meet the discerning sugar requirements of our clients and boost the operations of our ethanol facility, San Carlos Bioenergy Inc.”
“We aspire to shape Cadpi’s refinery in Batangas into a facility with world-class operations that can cater to a larger market,” he added.
The URC, for its part, said the acquisition of La Carlota assets would enhance its capacity to provide good milling services to its sugarcane planters.
