MANILA, Philippines - Century Pacific Food Inc. has acquired a 100 percent interest in Century Pacific Agricultural Ventures Inc., an integrated coconut producer of organic coconut products. for P4.5 billion.
Half or about P2.25 billion of the total investment will be sourced from existing cash and bank borrowings while the remaining P2.25 billion will be made via the issuance of 18.2 million Century Pacific shares at a price of P17.55 each.
“This acquisition is in line with Century Pacific’s priority to cement itself as a leading player in growing food markets. Global food companies have seen an increased appetite to search for acquisition targets in this higher growth, health-conscious, and organic product categories,” said Century Pacific president Christopher Po.
He said the new business will be a great addition to Century Pacific Food’s portfolio and another leg to sustain and drive the company’s future growth.
The P17.55 issue price is equivalent to a 4.41 percent premium from Century Pacific’s 30-day volume weighted average price of P16.81 per share as of Oct. 16 and a 3.85 percent premium from Monday’s closing price of P16.90 per share.
Century Pacific engaged Evercore Asia Ltd. as its financial advisor.
It has also tapped Cayetano Sebastian Ata Dado & Cruz Law Offices to conduct legal due diligence, and BDO Capital & Investment to provide a third party fairness opinion.
Century Pacific is the largest canned food company in the country. Its brands include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel, and Birch Tree, which have established market leading positions locally.
The company also provides private label tuna products for export overseas.
Established in 2012, Century Pacific Agriculture operates an integrated coconut facility, whose primary products are organic-certified, and conventional coconut water, desiccated coconuts, and virgin coconut oil.
The subsidiary’s coconut water and virgin coconut oil are sold to global brands and retailers in their respective categories. Other current products include copra, coco meal, and coco shells, which are sold to the domestic market.