Aboitiz acquires controlling stake in Eurofeed

Philippines-based Aboitiz Equity Ventures Inc. (AEV) has acquired a controlling stake in Vietnamese animal feed company Eurofeed.

Felmeeeh | Bigstock.com
Felmeeeh | Bigstock.com

Philippines-based Aboitiz Equity Ventures Inc. (AEV) has acquired a controlling stake in Vietnamese animal feed company Eurofeed.

The deal was set up through Pilmico International Pte, which is a subsidiary of AEV, reports Business Inquirer. It involves AEV taking a 70 percent share of Eurofeed at a cost of EUR3.7 million (US$4.3 million).

Already approved by the board of AEV, the acquisition is still subject to agreement by shareholders, and delivery of key documentation to the Vietnamese authorities.

A joint stock company, Eurofeed was set up in Vietnam in 2000 with one feed mill producing animal feeds to European standards, according to Deal Street Asia.

Acquisition of Eurofeed is not AEV’s first venture into the Vietnamese feed sector. In 2014, Pilmico International agreed to acquire from Vinh Hoan Corp. a 70 percent share of Vinh Hoan 1 Feed JSC, which was the fourth largest aquafeed company at the time.

In its latest financial report, AEV revealed a decline of 19 percent for its food subsidiaries, Pilmico Foods Corp, Pilmico Animal Nutrition and Pilmico International Pte. However, its Vietnamese enterprises, Feeds Vietnam and Farms, showed “remarkable growth.” An increase of six percent in sales volume was attributed to improved margins as well as expansion into new markets, the company said.

AEV’s other business units are in power, banking and financial services, land, and cement.

A year ago, Pilmico Food Corp. announced it was building two new feed mills in the Philippines to meet the demand of the country’s growing poultry and game bird sectors.

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