AgriNurture (ANI) has announced its subsidiary Best Choice Harvest Agricultural Corp (BCH) has signed a memorandum of understanding (MoU) with Tagum Resources Agri Industries to sell its 51 per cent interest in the banana grower-distributor.
BCH signed an MoU which includes the sale of 234,600 Tagum Resources shares for a total of P300m, to be purchased by Hijo and Black River, which owns 26 per cent of AgriNurture, according to a disclosure published on 18 December.
Tagum Resources operates a banana plantation in Tagum in the Philippines, but despite the divestment, Tagum Resources will still supply bananas to AgriNurture, one of the Philippines’ leading distributors and exporters of mangoes, bananas and tropical fruits globally.
“Pursuant to the MoU, [Tagum] guarantees supply of bananas to ensure the latter’s supply requirements,” AgriNurture said. “The divestment is expected to strengthen [AgriNurture’s] working capital.”
