Aboitiz group takes full control of Singapore-based agribusiness firm

The Aboitiz group has taken full ownership of Singapore-based Gold Coin Management Holdings Ltd., the largest agribusiness company in the region, with the buyout of the remaining 25 percent stake held by a Zuellig scion for $120 million.

The amount was based mainly on the same enterprise value of $550 million as last year’s acquisition of the 75-percent stake in Gold Coin. After deducting net debt (debt less cash and short-term investments) and certain sums payable by Golden Springs Group Ltd. to Gold Coin, the final cash consideration for the 25 percent was $120 million.

In a disclosure to the Philippine Stock Exchange on Wednesday, Aboitiz Equity Ventures said its food unit Pilmico International Pte. Ltd. (Pilmico Int’l) had agreed to acquire the remaining 25 percent stake in Gold Coin.

The takeover of Gold Coin is the group’s single largest overseas investment to date.

Gold Coin is engaged in the business of animal feeds manufacturing, which it carries out through various subsidiaries operating 20 feed mills in seven countries in Asia Pacific.

The move is in line with the group’s plan to expand its animal feeds business in Asia Pacific.

The acquisition of Gold Coin added 1.8 million metric tons of feeds capacity to the group, and provided expansion opportunities for AEV in the Chinese market.

In the next two to three years, the focus will be the integration of Gold Coin into the group.

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.—DORIS DUMLAO-ABADILLA