Philippines' Metro Pacific signs $97 mln investment deal for coconut firm (updated)

First Pacific

07/02/2023 03:37

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      Metro Pacific says to boost Axelum's domestic business
    

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      Conglomerate aims to be serious player in agriculture
-statement
    

  
 (Adds quotes from official, background, details)
       MANILA, Feb 7 (Reuters) - Philippine conglomerate Metro
Pacific Investments Corp  MPI.PS  on Tuesday said it has entered
into a deal to acquire a third of Axelum Resources Corp
 AXLM.PS  to expand its agriculture portfolio.
    In a disclosure, Metro Pacific said its subsidiary would
spend 5.32 billion pesos ($97.31 million) for a 34.76% share in
Axelum, a manufacturer and exporter of coconut products.
    The news confirmed a Reuters report on Monday citing sources
on Metro Pacific's plan to buy a significant stake in Axelum.
        "The acquisition buttresses Metro Pacific's promise in
becoming a serious player in the agricultural field," the
company said.
  
        Metro Pacific Agro Ventures will strengthen Axelum's
international business and develop the domestic market while
supporting local coconut farmers, CEO Jovy Hernandez said in a
statement.
  
        Axelum is one of the major suppliers of Vita Coco
Company Inc  COCO.A . It also exports milk, cream, cooking oil
and other coconut products to 23 countries.
  
        Metro Pacific, which has interests in power, water,
hospitals and toll roads, is a unit of Hong Kong-listed First
Pacific Co Ltd  0142.HK .
  
        It started an agriculture push in mid-2022 by acquiring
a majority share in a Philippine dairy and premium ice cream
producer.    
  
($1 = 54.67 Philippine pesos)
 (Reporting by Neil Jerome Morales
Editing by Ed Davies)
 ((manila.newsroom@thomsonreuters.com))