Macay Holdings sets P2 B capex next year

MANILA, Philippines - Macay Holdings Inc., the investment vehicle of former ambassador Alfredo Yao, is setting aside P2 billion for its capital expenditures next year while reserving some P4 billion more for a major acquisition in the future.

In an interview at the company’s annual stockholders meeting yesterday, Macay director and ARC Refreshments Corp. executive vice president Gerry Garcia said the firm is earmarking P2 billion next year to finance its operations and expansion of bottling facilities in the country.

Garcia said the company has the same amount alloted for capital spending this year.

Next year’s budget, however, excludes spending for potential acquisitions which the company is aggressively pursuing.

Macay president Anotonio Panajon said the listed firm continues to scout for possible acquisitions in the food and beverage business, both locally and abroad.

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

“Macay Holdings will pursue its expansion based on core growth and value-based acquisitions and joint ventures and is actively recruiting management talent from external resources,” Panajon said.

The company is allocating P4 billion for future acquisitions, funding of which will come from a deferred stock rights offering earlier this year.

Macay earlier this year told its shareholders it would not pursue plans to sell new shares as it does not require additional funding at that time.

“We defer that because the urgency of the need was not there anymore. We’re looking for bigger projects that will require additional funding. We don’t want to raise funds now and just let the money sit there,” Macay director Albert Toribio said.

Panajon said Macay would likely close a project or an acquisition first before doing the fundraising.

“As soon as the opportunity comes, I think we’ll need the funding to go along with it,” he said.

Macay is the parent firm of ARC Refreshments which produces, bottles, markets and distributes carbonated beverages and soft drinks such as RC Cola, Fruit Soda Orange, Juicy Lemon and Arcy’s Rootbeer.