Metro Pacific Investments (MPI) led by bilyonaryo Manny V. Pangilinan is reportedly in negotiations to buy into coconut exporter Axelum Resources (AXLM).
Reuters reported that “after completing an initial investment, Metro Pacific will have the option to buy more shares (of AXLM) to gain a majority stake in the future.”
A Bilyonaryo source said MPI was negotiating with several major AXLM shareholders for the purchase of a minority stake in the company, including treasury shares representing five percent of the company worth P705 million at current market prices.
“MVP is keen to make MPI an agriculture powerhouse. He is building up the capacity of Carmen’s and acquiring Axelum will give it an instant access to the growing demand for coconut exports. MVP’s goal is to address food security in the country,” the source said.
MPI bought premium ice cream maker Carmen’s Best Group from the Magsaysay family in June 2022. The holding firm also owns a stake in sugar miller Roxas Holdings which it bought eight years ago.
The major shareholders of AXLM are CP Compass Singapore PTE Ltd. (21.06 percent), chairman and CEO Romeo Chan (9.9 percent), president and COO Henry Raperoga (9.83 percent), Jose Armando R. Nañawa (6.11 percent), senior advisor Vincent Mills Jr. (5.32 percent), corporate secretary Preciosa Castillo (3.29 percent), and SVP Paul Rene Tayag (2.93 percent).
AXLM, which traces its roots to the First Group founded by Chan and Raperoga, has highly scalable production capabilities to expand in the domestic market with its main production facility located in Misamis Oriental and its two manufacturing and distribution facilities in the United States and Australia.
Its products include coconut water, coconut meat and milk powder, sweetened coconut, and coconut cream. At least 70 percent of the company’s sales comes from the US.
AXLM raised P4 billion from its initial public offering in 2019. It is currently trading at P3.50 or 30 percent below its IPO price of P5.