Aboitiz Equity Ventures Inc. (AEV) signed a $400-million loan facility with The Bank of Tokyo-Mitsubishi UFJ Ltd. to finance its purchase of Lafarge assets.
In a disclosure to the stock exchange, AEV said it struck a $400 million (P18 billion) bridge loan facility agreement with the Japanese bank to partially finance its acquisition of some Lafarge assets amounting to P24 billion.
“The proceeds of the loan will be used to partially finance AEV’s investment in holding companies for the purpose of the acquisition of the various Philippine assets and businesses of Lafarge S.A., including the cement production and other cement related businesses and services,” the disclosure read.
In the first week of August, AEV together with its partner, construction firm CRH Plc., completed the acquisition of several assets of Lafarge’s local arm Lafarge Republic Inc. which included cement factories and other facilities for cement production.
This is simultaneous with Holcim Philippines Inc’s successful bid for other assets as well, in line with the global merger of LafargeHolcim Group.
AEV President and Chief Executive Officer Erramon I. Aboitiz earlier said that this would support its “thrust to develop infrastructure as one of our core businesses and create a more diversified income source for AEV.”
“Together with CRH, we aim to take an already successful Philippine cement operations and management team to greater heights, as the country’s need for quality cement will continue to grow in line with its resurgent economy and infrastructure sector,” Aboitiz said.
Aside from the infrastructure segment, AEV is also focused on expanding its power business and being active in transport projects via the government’s public-private partnership (PPP) scheme, as well as entering new businesses such as the remittance business.
AEV’s first half net income went down to P10.32 billion from P12.16 billion despite its revenues reaching P55.07 billion, which was higher than the P54.33 billion posted in the same period a year ago.
Incorporated in 1989, AEV is the holding company of the Aboitiz Group of Companies, having businesses in power distribution, power generation and retail electricity supply (Aboitiz Power Corp.); financial services and portfolio investments (Union Bank of the Philippines); food manufacturing (Pilmico Foods Corp.); and real estate (Aboitiz Land Inc.).