MPIC plans to acquire more agricultural-based firms

MANILA, Philippines — Metro Pacific Investments Corp. (MPIC) is betting big on agriculture, with plans to acquire one or two more agri-based companies potentially before the entry of a strategic investor, while still retaining the conglomerate’s position as a key infrastructure player in the country, sources said.

MPIC hopes to seal a deal with a strategic investor that may potentially include Japanese giant Mitsui, within the first quarter, and may eventually lead to the conglomerate’s voluntary delisting. Both MPIC and Mitsui committed $600 million worth of joint infrastructure investments to the country, seen as a prelude to Mitsui buying into the Pangilinan-led conglomerate, sources said, but MPIC has not made any official announcement on this matter.

On agriculture, industry sources said MPIC is looking at acquiring more than one agriculture company, including at least one that is listed in the stock market, industry sources also said.

Indonesian tycoon Anthoni Salim, who owns MPIC’s majority shareholder, Hong Kong-based First Pacific Co. Ltd., wants the conglomerate to expand more into agriculture given the industry’s growing impact on food security and the continued increase in commodity prices.

“It’s a direction from Salim,” said one source.

Talks with agriculture companies have been ongoing and may or may not be concluded within the quarter, sources said.

MPIC forayed into the agri business last year through a partnership with the Carmen’s Best Group, with MPIC owning a 51 percent equity interest in The Laguna Creamery Inc.  and the Carmen’s Best Group retaining a 49 percent equity interest.

Early this month, MPIC sealed another agri venture with its wholly owned subsidiary, Metro Pacific Agro Ventures Inc. (MPAV), acquiring 34.76 percent ownership in Axelum Resources Corp. (ARC) for  P5.32 billion.

ARC is the leading manufacturer and exporter globally of high-quality coconut products  and  one of the major suppliers of Vita Coco, the global market leader in coconut water. The company is also a major exporter of desiccated coconut, coconut milk, coconut cooking oil, and other coconut products.

The acquisition buttresses MPIC’s promise in becoming a serious player in the agricultural field, following its investment in the dairy sector last year.

“The north star of our agriculture business is helping our country achieve food security,” said MPIC chairman, president and CEO Manuel V. Pangilinan

MPIC is into power, water, hospitals, and toll roads, but has been expanding in less regulated industries such as agriculture and tourism.