In a disclosure to the Philippine Stock Exchange yesterday, ANI said it shall be spending $15 million of the $30.450 million raised from a share sale on the acquisition and development of banana plantations, the development of rice and vegetable demonstration farms and the purchase of banana freezing businesses in Mindanao.
ANI said it will likewise spend $5 million on the purchase of a two-hectare lot along the South Luzon Expressway and the construction of a warehouse with cold storage and additional canning line for coconut water.
“[And] $10.450 million [will go to the] expansion of export sales and expansion of retail business,� it said further.
This, after ANI said last week it had executed an investment deal wherein Black River Capital Partners Fund Food Holdings (Singapore), Pte. Ltd. acquired a 28.11% stake in the farming firm for $30.450 million.
Black River is a wholly-owned subsidiary of Black River Capital Partners Fund (Food) LP, a fund managed by the private equity arm of US agribusiness and trading firm Cargill, Inc.
Black River purchased 76.294 million common shares of ANI from selling shareholders and 49.193 million common shares from the company.
Antonio L. Tiu, ANI president and chief executive officer said in a telephone interview yesterday that a domestic holding company, Earthright Holdings, Inc. was established in order to accomodate the transaction and address the 40% limit on foreign equity.
“Prior to the investment of Black River, foreign ownership of the company was about 30%,� he said.
He said last week the firm is still planning to proceed with the sale of five-year notes and a follow-on offering this year, even after raising funds from the share sale to Black River.
He said the firm plans to raise P2 to 2.5 billion from the sale of five-year notes and more than P1 billion from the follow-on offering.
The proceeds of the fund-raising activities, he said, will be used to support its expansion plans.
ANI is planning to spend P200 to P250 million for the acquisition of three to four local food chains within the first quarter, earlier reports show.
Shares of ANI were last traded at P10.90 apiece yesterday, 1.49% higher than the previous day’s P10.74 apiece. — L. D. Desiderio