ARC Refreshments Corp., a beverage unit of businessman Alfredo Yao’s Macay Holdings Inc., has withdrawn plans to acquire two manufacturing facilities of Zest-O Corp.
In a disclosure, Macay said that the board of directors of RC Cola maker and distributor ARC Refreshments “resolved not to pursue the acquisition of two bottling lines located in Kaybiga, Novaliches and Canlubang, Laguna owned by Zest-O Corp.”
Instead of acquiring the plants, the company is rationalizing a potential operating lease on the bottling lines’ facilities.
“ARC Refreshments is Planning to enter into long-term operating lease arrangements for the said bottling lines,” the company said.
On June 18, ARC Refreshments announced that its board agreed to acquire the Kaybiga and Canlubang plants to expand the RC Cola maker’s 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 ago, while its revenues also advanced 42 percent to P5.166 billion from P3.622 billion during the same period last year.
Since taking over Maybank ATR Kim Eng Financial Corp. last year, Macay is now operating as the holding firm of wholly owned food and beverage unit ARC Refreshments Corp., according to the company’s first half report.