MANILA, Philippines – Century Pacific Food Inc. has formalized the acquisition of a 100 percent stake in integrated coconut producer Century Pacific Agricultural Ventures Inc.
The total consideration for the purchase amounted to P4.5 billion, half of which would be sourced from existing bank borrowings while the other half would be paid via the issuance of 18.2 million CPF shares at a price of P17.55 each.
The P17.75 issue price is “equivalent to a 4.41 percent premium from CPF’s 30-day volume weighted average price of P16.81 per share as of October 26, 2015, and a 3.85 percent premium from its October 26 closing price of P16.90.”
“The acquisition is estimated to be seven to eight percent 2016 earnings accretive and will improve the consolidated company’s net profit margins,” CPF said .
“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,” CPF president Christopher Po said.
Evercore Asia Ltd. served as the financial advisor for the transaction.
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CPF 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.
