PILMICO Foods Corp., the food arm of conglomerate Aboitiz Equity Ventures Inc. (AEV), has taken over its joint venture firm in Vietnam to strengthen its presence in the Vietnamese market as a part of the group’s strategy to expand in the Southeast Asian region.
In a disclosure to the Philippine Stock Exchange on Wednesday, AEV said Pilmico, through its subsidiary Pilmico International Pte. Ltd., has acquired 100 percent ownership in the partnership company Pilmico Viet Nam Trading Company Limited for 888 million Vietnamese Dong ($39,782 or P1.92 million).
The deal was signed last Friday, October 28, but is still subject to the approval of the Ministry of Industry and Trade of Vietnam.
AEV said Pilmico Vietnam Trading will be the vehicle that will be used for the importation and distribution of Pilmico products into the Vietnam market.
Pilmico Vietnam Trading is a limited liability company operating in Vietnam and is engaged in the wholesale distribution of food products, beverages, agricultural and forestry raw materials, among others.
AEV said this is part of Pilmico’s strategy to expand its market in the Association of Southeast Asian Nations (Asean) region.
AEV is keen on expanding in the Asean particularly in Indonesia, Vietnam and Myanmar, not only in the food business segment but also in the power sector, especially in geothermal and hydro power, as well as infrastructure.
Pilmico is the food subsidiary of AEV, which contributes one percent of total group sales. It is engaged in farms, flour and feeds production, export and distribution in the Asean region.
AEV’s other subsidiaries are in power (Aboitiz Power Corp.), banking (Union Bank of the Philippines), property (Aboitiz Land Inc.), and infrastructure (Republic Cement and Building Materials Inc.).