AgriNurture to push agri ventures in China

MANILA, Philippines – AgriNurture Inc. said yesterday it will undertake agricultural projects with the People’s Government of Tianyang, Guangxi, China, worth RMB 246.

In a disclosure to the Philippine Stock Exchange (PSE), AgriNurture chief executive officer Tony Tiu said the company and China government have signed a letter of intent for cooperation for a planting project that would require an investment of RMB 136 million and an organic demo farms in the Philippines and China which would cost RMB 30 million.

The two have also set aside RMB 80 million for organic fertilizer production.

AgriNurture Inc., a supplier of fresh and processed agricultural food products, earlier acquired 51 percent each of Sunshine Supplies International Co. Ltd. and Xiamen Wantaixing Trading Corp. for a combined $2.5 million.

SunShine Suppplies is engaged in the business of trading fruits and vegetables in Hong Kong, Macau, China and Europe while Wantaixing is engaged in 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 Sunshine Supplies and Waintaxing amount to almost $10 million.

These acquisitions have ensured a continued and strengthened growth in AgriNurture’s 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 the Greater China Region.

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 is 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.

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.