ABOITIZ Equity Ventures Inc. (AEV), the listed holding firm of the Aboitiz family, is putting down P24 billion in investments for its planned acquisition of Lafarge assets to be purchased jointly with construction materials supplier CRH Plc.
In a disclosure to the stock exchange, AEV said it has finally formalized investment agreements with CRH after signing a memorandum of understanding (MOU) in May to jointly acquire the assets of Lafarge Republic Inc., the Philippine unit of global cement giant Lafarge SA.
“Full implementation and completion of the transaction is expected to be completed within the second half of 2015, subject to the conditions under the merger of Holcim and Lafarge and the approval of the global sale of Lafarge assets,” the AEV disclosure read.
Erramon I. Aboitiz, AEV president and chief executive officer, earlier said that the Lafarge assets to be acquired by the Aboitiz-CRH tandem may include “four Luzon-based cement manufacturing plants located in Bulacan, Norzagaray, Teresa, and Batangas; a plant in Danao City, Cebu, and associated limestone quarries.”
“We are very pleased with the prospect of entering this new business, which is a solid opportunity that will support our thrust to develop infrastructure as one of our core businesses and create a more diversified income source for AEV,” Aboitiz earlier said.
“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,” the AEV president added.
Other than the Aboitiz-CRH duo, Holcim Philippines Inc. is also in the process of acquiring some Lafarge assets in the country in line with the merger plans of the two global cement firms — Paris-based Lafarge SA and Switzerland-based Holcim Limited.
Holcim is keen on buying Lafarge’s shares in Lafarge Iligan Inc., Lafarge Mindanao Inc., Lafarge Republic Aggregates Inc., Quimson Limestones Inc., Sigma Cee Mining Corp., APC Properties Inc, and Star Terminal based in Harbour Centre Manila, as well as certain parcels of land as identified by both Holcim and Lafarge.
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.
The Aboitiz-led firm saw a 36.7-percent decline in its first quarter net income to P4.1 billion from P6.09 billion in the same period last year due to lower sales in its power, banking and real estate business segments.
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.)