NDC set to acquire 28% stake in Yuchengco firm

Government is planning to acquire 28 percent of the Yuchengco-owned T'boli Agro-industrial Development Inc. (TADI) as the company prepares for the expansion of its pineapple plantation and cannery in South Cotabato.

Using the proceeds of the Erap bonds, government will make the acquisition through its investment arm, the National Development Co. (NDC) which would invest P180 million.

NDC general manager Samie Lim said TADI approached them offering 28 percent of the company although several other private investors were already interested.

Lim said TADI was gearing up for expansion and wanted government participation in the form of a minority shareholding in the company, especially when it implements its planned capital expansion through the issuance of new shares.

NDC projects director Sam Belleza estimated that government's initial P180-million investment would be worth at least P300 million by 2004 when the NDC plans to exit and divest its holdings.

Also interested in TADI, according to Belleza, were Commonwealth Development Corp. (CDC), Dole Pacific and House of Investments which already has significant holdings in the company.

HI and CDC, Belleza said, have already started conducting their separate due diligence while the NDC is awaiting board approval after the P180-million investment was approved by its project evaluation committee.

TADI is owned by taipan Alfredo Yuchengco, the Yuchengco-owned HI, Dole Philippines, Alcantara and Sons, Utrech Managers and Consultants Inc. and several other individual shareholders.

Lim said NDC's acquisition of TADI shares is expected to boost the firm's prospects and expansion plans which included the increase in its annual pineapple production from 100,000 metric tons to 180,000 metric tons.

"The additional fund will also help in its acquisition of additional equipment to increase its cannery output from the annual processed volume of 4.4 million standard cases to 8.6 million cases," Lim said.

Lim said Thailand was slowed down its market performance since 1995 and was likely to drop its current position as leader in canned pineapple exports. "With this scenario, the Philippines can hope to penetrate into its market share," he said.

TADI began commercial operations in 1995 and is the country's third largest pineapple processing facility next to Dole and Del Monte.