Cargill unit offers to buy 28% of AgriNurture

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AgriNurture is directly tied up in landgrab deals in the Philippines. 
Manila Standard | 4 October 2011

Cargill unit offers to buy 28% of AgriNurture
 
by Jenniffer B. Austria
 
Black River Capital Partners Fund (Food) LP, a fund managed by the private equity arm of US agribusiness and trading giant Cargill, has offered to acquire 28.11 percent of local fruit and vegetable grower AgriNurture Inc. for $30.4 million.
 
AgriNurture said in a disclosure to the stock exchange it received and accepted the term sheet offered by Black River, a fund managed by global asset management company Black River Asset Management LLC.
 
“Under the term sheet, Black River intends to acquire 28.11 percent equity in the company for and in consideration of $30.45 subject to... the conduct of a legal, tax, financial... due diligence,” AgriNurture said.
 
Share price of AgriNurture on Monday surged to P9.52 after the disclosure, up 12 percent from Friday’s close of P8.50.
 
Black River Asset Management is an independently managed subsidiary of Cargill, one of the largest, privately-owned businesses, providing food, agricultural, risk management, financial and industrial products and services around the globe.
 
Cargill’s major businesses include trading, purchasing and distributing grain and other agricultural commodities; trading in energy, steel and transport; the manufacture and sale of livestock and feed; and producing food ingredients such as starch and glucose syrup, vegetable oils and fats for application in processed foods and industrial use.
 
Black River at the start of the year planned to raise a $400-million fund to invest in companies that would benefit from the rising Asian demand for meat and vegetables.
 
AgriNurture, formerly known as Mabuhay 2000 Enterprises Inc. and incorporated on February 4, 1997, started its business operations as an importer, trader and fabricator of post-harvest agricultural machineries.
 
The company in 2001 diversified into other various agro-commercial businesses, focusing on the export trading of fresh Philippine carabao mangoes as its main revenue stream.
 
AgriNurture also went into the producion of export quality processed foods using the homegrown fruits as raw materials. It supplies other homegrown fruits such as coconut, banana, pineapple and papaya to customers in China, the Middle East, North America and the European Union.
 
AgriNurture in August acquired 51 percent of The Big Chill fruit shake chain for P20 million. The Big Chill owns the franchise to operate US coffee chain Tully’s in the Philippines.
Original source: Manila Standard
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