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By Cheryl M. Arcibal, Reporter
ALLIANCE Global Group Inc., the holding company
which owns the Philippine master franchise of the fast-food chain
McDonald’s, will go on an aggressive expansion this year as it
sets its sights on a food-manufacturing firm.
Andrew Tan, Alliance Global chairman, told
reporters on Friday following a special stockholders’ meeting that
the company will use the bulk of its additional P7.95-billion
authorized capital stock for acquiring a local food-manufacturing
company.
“Because we have always been in
glass-manufacturing business ever since the start, we are looking at
the manufacturing sector. It’s under discussions right now, but I
can’t disclose further until we finalize everything and make the
formal disclosure,” Tan said.
“Think our business is always with food
because we have been in the snack food business,” he said,
referring to Alliance Global’s distribution of potato strings
snack Pik-Nik.
He added that the company is negotiating with
more than one food manufacturer for a possible acquisition in the
first half.
Tan also refused to discount the possibility of
borrowing to finance the expansion and capital working requirements
of Alliance Global, which may amount to more than P5 billion for the
year.
Last year the company allotted between P1
billion and P1.5 billion for its capital expenditures.
Alliance Global is also seeking to expand its
glass-manufacturing business but will pursue this in 2008. “It’s
still in the drawing board,” Tan said.
Eighty-one percent of the company’s
stockholders approved its bid to increase its authorized capital
stock from P5 billion to P12.95 billion.
“The economy is on a stronger footing, and the
exchange rate continues to get better, making it cheaper to acquire
capital equipment,” Tan said.
For the first nine months of the year, Alliance
Global said its net income rose 82 percent to P442 million owing to
the big jump in the investment income in an associate.
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