(CTN NEWS) – Axelum Resources Corp, a maker and exporter of coconut goods, announced on Monday that Philippine conglomerate Metro Pacific Investments Corp would be purchasing one-third of Axelum Resources Corp for the price of 5.32 billion pesos (US$97.7 million).
According to two sources familiar with the transaction, Reuters reported earlier on Monday that Metro Pacific, which is expanding its agribusiness portfolio during a time of high commodities prices.
They were in talks to buy a big stake in Axelum. This was based on information provided by Reuters.
Romeo Chan, chairman of Axelum, stated that through this agreement, the company would be able to “continuously realize and fast-track our life-long objective to further expand and change the Philippine coconut sector.”
Chan stated that Metro Pacific, through its subsidiary Metro Pacific Agro Ventures, will acquire approximately 35% of Axelum.
Which presently has a market capitalization of $248 million. Chan further stated that this acquisition would take place very soon.
A news conference regarding Metro Pacific is scheduled to take place on Tuesday.
Anthoni Salim, an Indonesian business magnate, owns First Pacific Co. Ltd., a branch of Metro Pacific. Metro Pacific has holdings in the power and water industries, hospitals, and toll highways.
It is estimated to be worth $2.15 billion.
Midway through 2022, the company began its expansion into the agricultural sector by purchasing a controlling interest in a manufacturer of luxury ice cream and dairy products.
Coconuts are supplied from the southern Philippines and used in producing various goods by Axelum. These goods include milk powder, cream, and oil.
It has customers in 23 countries, including Vita Coco Company Inc., The Hershey Company, and Kellogg Company. It exports its products there.
The Philippines is one of the most significant suppliers of the product on a global scale, and coconut oil is one of the country’s most valuable exports.
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