Yao backs out of Zest-O takeover plans

MANILA, Philippines - Macay Holdings Inc., the publicly-listed investment vehicle of former ambassador Alfredo Yao, has backed out of plans to take over two non-core bottling plants of subsidiary Zest-O Corp. in Luzon.

The company said yesterday that its subsidiary ARC Refreshments Corp.’s board of directors decided not to pursue the acquisition of two bottling lines owned by Zest-O in Kaybiga, Novaliches and Canlubang, Laguna.

“Rather, ARC Refreshments is contemplating on entering into long-term operating lease arrangements for said bottling lines,” Macay Holdings said.

Macay Holdings earlier said it plans to acquire the two Zest-O plants to further strengthen its bottling operations in the country.

The firm is eyeing to become a diversified food and beverage company in the next five years through a local expansion program that will take advantage of the improving consumer spending in the Philippine.

ARC Refreshments was created earlier this year to make it as the sole Philippine bottler and distributor of RC Cola.

In the short term, Macay Holdings intends to expand its core business through ARC Refreshments, which holds the exclusive license to manufacture and distribute RC Cola, Fruit Soda Orange, Juicy Lemon and Arcy’s Rootbeer.

Net sales and net income of Macay Holdings, primarily sourced from ARC Refreshments, reached P2.46 billion and P407.86 million in the first quarter, respectively. The firm’s low-priced softdrinks brand has a 20-percent market share in Metro Manila.