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Pilmico gains majority interest in Gold Coin for US$413 million

AEV’s food subsidiary Pilmico International Pte Ltd announced its acquisition of a majority stake in one of Asia’s largest privately-owned agribusiness corporations, Gold Coin Management Holdings Limited, as it expands its  feeds business in the Asia Pacific region.

July 21, 2018

AEV’s food subsidiary Pilmico International Pte Ltd announced its acquisition of a majority stake in one of Asia’s largest privately-owned agribusiness corporations, Gold Coin Management Holdings Limited, as it expands its  feeds business in the Asia Pacific region.

Pilmico International is a wholly owned subsidiary of Aboitiz Equity Ventures, Inc. (AEV) through its Singapore-based holding entity, AEV International Pte Ltd. Pilmico International signed a share purchase agreement with British Virgin Islands-based Golden Springs Group, Ltd. for 75% equity interest in Gold Coin. The consideration is based on an enterprise value of US$413 million, which is equivalent to 75% of the total enterprise value of US$550 million. After deducting cash-like adjustments, the final cash consideration is US$334 million. The transaction will be funded through financing from foreign banks.

Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from its holding company, GSG. 

Golden Springs Group’s portfolio includes Regal Springs, which comprises tilapia farming and shrimp genetic improvement company, SyAqua, producer of PLs and SPF and SPR P. vannamei shrimp broodstock and aquafeed manufacturing in six mills across South East Asia, primarily for shrimp, but also for freshwater and saltwater fish species, including encapsulated hatchery feeds. Gold Coin’s aquaculture business is reported to be worth $90 million in sales.

Established in Singapore in 1953, Gold Coin employs 2,600 people across 19 production facilities, in 9 countries. With a milling capacity of approximately 2.5 million tonnes per year, Gold Coin offers products for both livestock and the aquaculture, including young animals and hatchery feed, premixes, concentrates and compound feed.

“ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feed milling business beyond ASEAN and now across Asia. This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity.” said Sabin M. Aboitiz, AEV Chief Operating Officer and Pilmico President and Chief Executive Officer.

The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date. Pilmico International’s first ASEAN venture was in Vietnam in 2014 when it bought a 70% stake in Vinh Hoan Feeds (VHF), one of the country’s major aquafeed manufacturer. In 2017, it bought an additional 15% stake in VHF, effectively increasing its stake to 85%. Driven by its strategy to widen its footprint in Vietnam and diversify product portfolio, in September 2017, Pilmico International bought a 70% stake in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.

“The Zuellig and Aboitiz families have known each other for generations. I am excited about the partnership with Aboitiz Group, one of the largest and most established conglomerates in the region. The partnership will strengthen Gold Coin’s growth profile and long-term value creation potential”, said Peter Zuellig, Chairman of GSG in a press release.

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