AgriNurture (ANI) disclosed in a report to the Philippine Stock Exchange on Monday it had executed an investment deal with a Singapore-based subsidiary of Black River Capital Partners Fund.
According to a report in Business World, Black River, which is managed by US-based agri-business giant Cargill, had bought a 28.11 per cent share in ANI.
“Under the investment agreement, Black River shall acquire an aggregate of 125,486 common shares in the company for an aggregate amount of US$30.45m,” ANI said in the disclosure to the Philippine Stock Market.
ANI president and CEO Antonio L Tiu said in a telephone interview with Business World that Black River was the company’s first strategic foreign investor.
“We’ve had foreign investors before but Black River has the biggest stake so far,” he said, adding that proceeds from the share sale would be used to fund the company’s expansion plans. “We will push through with the purchase of plantations in Mindanao for rice, corn, banana and vegetables; and for cold chain systems,” he said.
ANI would still look to proceed with the issuance of five-year notes and its planned follow-on offering this year, despite the investment by Black River, he added. “For the five-year notes we are looking at raising between P2bn (US$45.52m) to P2.5bn,” he said.
The firm also plans to generate more than US$22.77m through the follow on offering.
Recently ANI announced plans to invest US$4.6m to US$5.7m in the acquisition of three or four local food chains in early 2012.
The company also plans to spend a further US$10m on food-related businesses overseas.
