AgriNurture acquires 2 Chinese food firms

MANILA, Philippines - AgriNurture Inc., a leading supplier of fresh and processed agricultural food products, has signed an agreement to acquire 51 percent each of Sunshine Supplies International Co. Ltd. and Xiamen Wantaixing Trading Corp. for a combined $2.5 million.

In a disclosure to the Philippine Stock Exchange, AgriNurture said payment will be made in two tranches.

Sunshine Supplies is in the business of trading fruits and vegetables in Hong Kong, Macau and Europe while Wantaixing is into trading of commodities, principally plastic feeds, grains and cavendish banana, in the Greater China Region.

For the first three quarters of the year, the combined sales of the two Chinese companies amounted to almost $10 million.

AgriNurture said these acquisitions ensure a continued and strengthened growth in international business not only as one of the country’s top exporters of Philippine mangoes but also as a new player in the banana industry particularly in Greater China.

Trading in shares of AgriNurture was suspended yesterday to allow the investing public equal access to the company’s announcement. Trading will resume today (Oct. 12).

AgriNurture is planning to raise between P1 billion and P1.5 billion through a follow-on offering to fund its expansion program which includes acquisition of facilities for farming, cold storage and wet market operations.

In July, the company announced it was planning to raise around P500 million through a stock rights issue to finance acquisitions. Shareholders can buy one share for every one share held as of a record date yet to be determined by the company for P2.50 each share.

Subscribing shareholders shall also be entitled to free warrants at a ratio of one warrant for every two shares acquired from the rights issue. The warrants are of European call option, exercisable after three years at a strike price of P10 per share.

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.       

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