AgriNurture to raise P2B via debt, equity offerings
MANILA, Philippines - Listed food exporter AgriNurture Inc. (ANI) is planning to raise P2 billion through debt and equity offerings to cover its five-year capital expenditure program.
In a press briefing yesterday, ANI chief executive officer Tony Tiu said the company will first undertake a stock rights offering, estimated to generate P270 million in proceeds, to be followed by a follow-on offering.
Tiu said the size of the follow-on offering would depend on market conditions. Should there be strong demand for equities, the company could raise around P1.5 billion. The balance will be raised through debt.
He said the company’s board approved Friday the issuance of as much as P1 billion worth of five-to 10-year convertible bonds/notes.
“We’ll consider which best option to take. The plan is to raise a total of P2 billion. If we don’t think the conditions are ripe for the company to do a follow-on offering then we would need to raise the bulk of amount needed to fund our five-year plan through the issuance of bonds,” Tiu said.
Proceeds from the offering will be used for the expansion of the company’s banana, rice, vegetable plantation as well as expansion of cold storage for shell life extension.
AgriNurture is mandated to undertake an initial public offering a year after its listing by way of introduction on May 25, 2009.
Tiu said the company is also pursuing its stock rights offering in the second quarter with Multinational Investment Bancorporation (MIB) and Vicsal Investment Inc. handling the issue.
Shareholders can buy one share for every one share held at a P1 each share. The record date has yet to determined by the board.
Subscribing shareholders shall also be entitled to free warrants at a ratio of one warrant for every two shares acquired from the rights issue.
ANI 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.
The company is now into the planting of rice, corn, and high-value vegetables. Since these products are perishable, the company is looking to extend the shelf life putting up cold storage facilities.
Tiu said ANI is also venturing into the coffee shop business with the signing of a master license agreement with Tully’s Coffee International Pte. Ltd., of Singapore, the franchising subsidiary of Seattle-based Tully’s Coffee.
He said around $1.2 million to $1.5 million would be invested in the setting up of the Tully’s coffeeshop business over the next 12 months.
Tully’s Coffee is a specialty coffee retailer and wholesaler, owned by Green Mountain Coffee Roasters Inc. Its stores serve speciality coffees, espresso, baked goods, pastries, and coffee-related supplies.
It also has overseas licensing agreements in Japan and South Korea where its brand name is used for Tully’s coffee houses in those countries. Tully’s currently has the highest sales of whole bean coffee in grocery and supermarket stores in the US.
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