Metro Pacific Joins the Coconut Industry with 35% Stake in Axelum Resources

The agriculture arm of Metro Pacific Investments Corp. (MPIC) is buying a 34.76% stake in a major coconut products manufacturer, Axelum Resources Corp., for P5.32 billion as the investment company boosts its presence in agribusiness.  MPIC subsidiary Metro Pacific Agro Ventures, Inc. (MPAV) will be acquiring the shares in Axelum, a move that came after its venture into the dairy business with the acquisition of a 51% stake in Magsaysay-led dairy company, Carmen’s Best Group in June last year.
“The north star of our agriculture business is helping our country achieve food security,” said Manuel V. Pangilinan, MPIC chairman, president, and chief executive officer, in a regulatory filing on Tuesday, February 07.  “This investment into Axelum will mean more income opportunities for coconut farmers, as well as a broader landscape for Philippine agriculture,” he added.
In a press briefing on Tuesday, Axelum President and Chief Operating Office Henry J. Raperoga said: “The proceeds will be used for the improvement of facilities as well as for our expansion program.”  Among the expansion projects is a new coconut water line feeding machine, which will increase Axelum’s capacity to 4 million liters a month from the present 3 million liters.  Currently, the utilization of its existing coconut water line is at 85-90%.
Axelum processes around 600,000-700,000 coconuts per day, bought from 15,000 to 20,000 coconut farmers and cooperatives as far as 200-300 kilometer radius from its plant in Medina, Misamis Oriental.  About 90-92% of total company production is for export and the balance is for local distribution.  And with the entry of MPIC, the company is expanding in the domestic market, Raperoga said.
Axelum is present in more than 30 export markets that included the US, Canada, Australia, New Zealand, Eastern Europe, Middle East, Japan, and some Asian countries.  It has an extensive coconut portfolio ranging from desiccated coconut and coconut milk to coconut water and coconut cream under its homegrown brand labels Fiesta, Fiesta Tropicale, Red V and Romantika.  It  is also the top supplier of a global coconut water drink brand, Vita Coco.
The deal is subject to customary closing conditions as well as regulatory approvals, but MPIC is targeting to complete the transaction before the end of the first quarter this year.  MPIC is an infrastructure investment company with holdings in Manila Electric Co., Maynilad Water Services, Inc., Metro Pacific Water Investment Corp., Metro Pacific Tollways Corp., Metro Pacific Hospital Holdings, Inc., and Light Rail Manila Corp., among others.  Through MPAV, MPIC continues to look for other opportunities in the agriculture sector.