Agribusiness firm eyes new acquisitions

Agrinurture Inc. (ANI) aims to make “several” more acquisitions for 2011 with a budget of about P250 million, company president and CEO Antonio L. Tiu said in an interview.

For 2012, ANI may initially spend about $5 million for a foreign acquisition, after which more purchases may be completed within the year, Tiu said.

ANI is looking for businesses built around vegetables and fruits, which would fit into the agro-industrial company’s farm-to-plate model, Tiu said.

The company sells fresh and frozen vegetables and fruits locally and abroad. It also supplies its own healthy snack bars and fresh juice stores.

ANI is also considering listing on the stock exchange in Australia in March 2012, depending on market prospects, among other factors, Tiu said.

The follow-on offering in the Philippines is also still under consideration “until we finish the Black River agreement,” Tiu said.

Tiu said that ANI has been finalizing documentation and other legal matters related to the Black River Capital Partners Fund (Food) LP, a fund managed by Black River Asset Management LLC, for the acquisition of substantial stake in the company.

The US-based global asset management company is set to acquire 28.11 percent of the agro-commercial firm for $30.45 million, subject to the conduct of a legal, tax, financial and ESG due diligence.

Black River is a unit of commodities giant Cargill Inc., which is based in the US.

In early October, ANI also told the Philippine Stock Exchange that it has acquired “fresh capital” from additional subscriptions to its shares of stock, enabling the agro-industrial company to expand and make “strategic acquisitions.”

In a disclosure to the Philippine Stock Exchange, ANI said its board has approved the equity subscription of seven new investors to about 25 million shares valued at P250 million.

“The fresh capital will be used as part of the company’s working capital that would augment the funding requirements of its growing operations as well as fund strategic corporate acquisitions of the company,” ANI said in the disclosure.