Macay Holdings Inc., the listed firm of businessman Alfredo Yao, was given the green light to acquire lock, stock and barrel ARC Holdings Inc., which owns RC Cola’s trademark license in the Philippines.
Macay’s board of directors, led by President Antonio Panajon, approved on Wednesday the company’s takeover of ARC Holdings.
“The proposed transaction will fully consolidate under Macay all the licensing, trademark and related rights currently held by ARC Holdings on the RC Cola brand,” the firm said in a disclosure to the Philippine Stock Exchange. The terms and conditions of the agreement, however, have yet to be finalized.
ARC Holdings holds the trademark licenses of Royal Crown Cola Inc., which owns the rights to the trademark of RC Cola in the Philippines.
Macay said its acquisition of ARC Holdings “will have no effect on the nature of the business, operations, and/or capital structure” of the company.
Macay’s other beverage unit, Zest-O Corp., will remain as a separate business entity.
On August 29, Macay’s beverage subsidiary ARC Refreshments Corp. said it junked its plan to acquire two bottling facilities of Zest-O — one in Kaybiga, Novaliches and the other in Canlubang, Laguna. Instead, the RC Cola maker is opting for lease arrangements in the two facilities to ramp up beverage production.
Earlier, Macay said it plans to fully transform the company into a beverage consumer firm through its units ARC Refreshments and Zest-O.
Macay’s first-half net income more than doubled to P841.49 million from P381.15 million a year earlier, while its revenues also advanced 42 percent to P5.166 billion from P3.622 billion during the same period last year.