MPIC seals P5.3 billion Axelum acquisition

MANILA, Philippines — Tycoon Manuel V. Pangilinan is betting big on agri-business with the signing yesterday of a P5.3-billion deal to acquire a stake in listed integrated coconut manufacturer Axelum Resources Corp.

Pangilinan’s Metro Pacific Investments Corp. (MPIC), through wholly-owned subsidiary Metro Pacific Agro Ventures Inc. (MPAV), has secured a 34.76 percent stake in Axelum, a manufacturer, exporter, and retailer of globally in-demand food essentials, primarily best-in-class coconut products.

With the partnership, the two companies aim to capitalize on opportunities in the coconut industry and enhance the capabilities and competitive edge of Philippine coconuts in the global market.

Axelum caters to a top-tier clientele of renowned multinational consumer brands across more than 30 high-growth export markets. It produces an extensive range of premium coconut products.

Romeo Chan, chairman and CEO of Axelum, said the company welcomes the entry of MPIC as a strategic investor.

“We proudly welcome the investment of MPAV into Axelum. This enduring partnership was built on a common vision to spearhead key initiatives that will modernize and further transform the local coconut industry by leveraging our joint expertise, network, and resources.” Chan said.

“Most importantly, this would allow us to broaden our impact by providing sustainable livelihood to coconut farming communities and progressively contribute to the continuous development of the country’s agriculture sector,” he said.

Pangilinan, chairman, president and CEO Of MPIC, said the partnership with Axelum enables the tollways and infrastructure conglomerate to dive deeper into the agriculture industry.

“This partnership embodies our commitment to sustainable investments, Axelum’s expertise in the coconut industry, combined with MPAV’s ambition for

Philippine agriculture position us to make lasting contributions to the nation. We look forward to promoting sustainability and competitiveness in the country’s agricultural sector,” Pangilinan said.

MPIC, which voluntarily delisted from the Philippine Stock Exchange (PSE) and successfully re-privatized this year, wants to make agribusiness, which is less regulated, its top fourth business unlike its core businesses, such as power, toll roads, and water. The company has also been expanding into tourism.

Last year, MPIC ventured into the dairy industry by partnering with the Carmen’s Best Group and acquiring a 51 percent stake in The Laguna Creamery Inc.

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