Aboitiz in talks to fully acquire animal feeds manufacturer Gold Coin

Aboitiz Equity Ventures Inc. (AEV), through its food subsidiary Pilmico International Pte. Ltd., on Monday said it plans to acquire full ownership of Asia-Pacific animal feeds manufacturer Gold Coin Management Holdings Ltd.

"For the food group, you know we bought 75 percent of Gold Coin and we now have the option or we have the opportunity to buy the other 25 percent, so we are negotiating that to make it 100 percent," Pilmico president and CEO Sabin Aboitiz told reporters in a press conference in Makati City.

Established in Singapore in 1953, Gold Coin is involved in animal nutrition and the manufacturing of scientifically balanced animal feed as it operates 20 livestock and aqua feed mills across 11 countries.

It currently has operations in countries such as China, Indonesia, Malaysia, Singapore, Sri Lanka, and Vietnam.

Meanwhile, Pilmico is primarily engaged in the manufacture of wheat flour and wheat by-products, as it imports both soft and hard wheat from the United States and Canada.

The company in July 2018 acquired a 75-percent equity interest in Gold Coin for $334 million, based on the enterprise value of $413 million.

"We have an option to buy the other 25 percent and the price, if we exercise the option, the price is a set option. It's agreed from before," said Aboitiz.

AEV chief financial officer Manuel Lozano earlier this year was reported to have said that the company expects to invest $200 million in the next two to three years to expand Gold Coin. — BM, GMA News