AgriNurture acquires mango exporter

MANILA, Philippines - Publicly listed AgriNurture Inc. is acquiring Hansung Agro Products Corp. for P10 million as part of its strategy to boost exports.

Hansung, incorporated on June 6, 2008 under the Foreign Investments Act of 1991, is engaged in trading, import and export of goods such as agricultural products on wholesale basis. 

In its disclosure to the Philippine Stock Exchange, AgriNurture said Hansung is one of the few accredited companies that has the capacity and license to export fresh mangoes to Japan and Korea.

“With this acquisition, the company expects to increase its export operations in Japan and Korea and further secure its position as one of the top exporters of fresh mangoes in the country,” AgriNurture said.

AgriNurture currently exports banana, papaya, pineapple and mango to parts of Southeast Asia, Canada, Europe, South Korea and the Middle East. The bulk of its produce is shipped to China.        

It is bent on pursuing a planned follow-on offering of 104.7 million shares to raise about P1.5 billion to fund its expansion plans, including facilities for farming, cold storage and wet market operations.

AgriNurture is mandated to undertake an initial public offering a year after its listing by way of introduction on May 25, 2009.

The firm is now into the planting of rice, corn, and high-value vegetables. Since these products are perishable, AgriNurture is looking to extend shelf life by putting up cold storage facilities.

AgriNurture, an agribusiness and trading company, is hoping to raise P5 billion in fresh equity as it aims to become a regional player in the next five years or by 2014.

Aside from the follow-on offering, the group is considering taking Beidahuang Philippines, a joint venture with Chinese firm Heilongjiang Beidahuang Seed Group Co. Ltd., public. Beidahuang manufactures and distributes rice seedling in the Philippines.

AgriNurture, the first Philippine company to be listed on the National Stock Exchange of Australia, is eyeing new export markets abroad like Thailand and Indonesia to further augment its revenue stream.

The company earlier formed a joint venture with Saudi firm Far Eastern Agricultural Investment Co. (Feaico) to develop a total of 50,000 hectares of plantations for local consumption and exports.

Under the agreement, the joint venture will put up “commercial sized” pineapple, banana, rice and corn plantations and processing facilities in the Philippines. It shall gradually expand the plantations through contract growing up to a core area of 50,000 hectares.