PH’s Aboitiz is said to mull sale of minority stake in Pilmico

Manila, the Philippines. Photo by Aeron Oracion on Unsplash

Philippine conglomerate Aboitiz Equity Ventures Inc. is considering a sale of a minority stake in its animal feed business Pilmico Foods Corp., people familiar with the matter said.

Aboitiz is considering selling about 20% to 30% of the unit, the people said, asking not to be identified because the information is private. The transaction could value the entire business at more than $1 billion, they said.

Deliberations are ongoing and the companies could decide against a deal, the people said. A representative for the company declined to comment.

Pilmico has more than 29 facilities, including flour and feed mills, pig farms and a meat-cutting facility across nine Asia-Pacific countries, according to its website. It bought a controlling stake in animal feed producer Gold Coin Management Holdings Ltd. from Golden Springs Group for $334 million in 2018. Gold Coin became wholly owned by Pilmico in 2019.

The potential stake sale comes after Aboitiz cut its planned capital expenditure by a third to 47 billion pesos ($967 million) last year, citing the coronavirus pandemic.

Aboitiz reported net income for its food manufacturing segment of 1.1 billion pesos in the first nine months of 2020, a 10.8% decrease on the same period the year before. The company said a decline in revenue was due to lower selling prices for the group’s feed business, offsetting higher sales volumes.

Bloomberg 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.