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A substantial investment was disclosed by Metro Pacific Investments (PSE:MPI) to Axelum (PSE: AXLM).

This is a large amount of stake as it is one third of the existing market cap of AXLM. Total value of MPI stake to Axelum is Php 5.32 Billion.

MPI is expected to pay 4.05 pesos per share for AXLM 1.119 Billion shares.

Below is the disclosure made in PSE Edge yesterday.

Metro Pacific Investments Corporation (“MPIC”), the country’s leading infrastructure investments company, branches into another agri venture,  with its wholly owned subsidiary, Metro Pacific Agro Ventures Inc. (MPAV), acquiring 34.76%  ownership in Axelum Resources Corporation (“ARC” or the “Company”) for PHP5.32 billion.

ARC is the leading manufacturer and exporter globally of high-quality coconut products, and one of the major suppliers of Vita Coco, the global market leader in coconut water. The company is also a major exporter of desiccated coconut, coconut milk/cream, coconut cooking oil, and other coconut products.

The acquisition buttresses MPIC’s promise in becoming a serious player in the agricultural field,  following its investment in the dairy sector last year.

“The north star of our agriculture business is helping our country achieve food security,” says

MPIC Chairman, President, and CEO Manuel V. Pangilinan. “This investment into ARC will mean

more income opportunities for coconut farmers, as well as a broader landscape for Philippine

agriculture.”

Capitalizing on the Coconut Industry

With its global presence, ARC’s products are sold in both the domestic and international markets, supplying to food and beverage companies, confectioneries, bakeries, supermarkets and grocery store chains, and other establishments around the world. They are widely distributed in the United States, Canada, Australia, New Zealand, Eastern Europe, Middle East, Japan, and some countries in Asia.

ARC Chairman and CEO Romeo I. Chan states, “Through this partnership, we aim to achieve our life-long vision of further developing and transforming the Philippine coconut industry. We proudly welcome our new partners, MPAV and the entire MPIC organization, and we thank them for sharing the same values and ambition to advance the coconut industry by synergizing our resources and expertise.”

“More importantly, this puts us in a strong position to help uplift the marginalized coconut farming communities in our country and contribute to the continuous development of the agricultural sector,” Chan added.

Augmenting ARC’s focus on export, MPAV aims to nurture a higher level of patronage of these products by local consumers.

“The Philippines enjoys global renown for its coconut products. Axelum has had an impressive history—having helped establish the country as the world’s leading producer of high-quality coconut products.” says MPAV President and CEO Jovy Hernandez. “We at MPAV are eager to work with Axelum not only to strengthen their international business but also to develop the domestic market and support our local coconut farmers.”

MPIC, through MPAV, continues to look for other opportunities in the agricultural sector, while aiming to achieve a wider presence in the dairy industry.

This venture in agribusiness affirms MPIC’s resolve to be the largest catalyst for a Sustainable Philippines to achieve food security and ultimately food independence. It is also aligned with the efforts of both MPIC and ARC to contribute to the United Nations Sustainable Development Goals (UN SDGs), particularly Goal 2: End hunger, achieve food security, improve nutrition and promote sustainable agriculture.

MPIC is a leading Philippine company with investments in power, toll roads, water, transportation, healthcare and real estate while Axelum is present in over 30 export markets, with an extensive coconut portfolio ranging from coconut milk and desiccated coconut, to coconut water and coconut cream, under the homegrown labels Fiesta, Fiesta Tropicale, Red V and Romantika. In addition, Axelum is a top strategic supplier to Vita Coco, the world’s largest and most popular coconut water drink. For 2022, Axelum is on-pace to post record earnings driven by robust global demand and strength of the dollar.

Source: https://edge.pse.com.ph/openDiscViewer.do?edge_no=707281047a97fc109e4dc6f6c9b65995

AXLM stock price closed to 3.32 pesos per share dropping more than 5% after the news broke out.