Vitarich eyes 8% breeder output boost from Davao farm deal – BusinessWorld Online
LISTED poultry integrator Vitarich Corp. (VITA) aims to increase its breeder output by 8% with the P280-million acquisition of breeder farm facilities in Davao del Sur.
In a stock exchange disclosure on Tuesday, Vitarich said its board had approved a memorandum of agreement (MoA) with Broilers Club, Inc. (BCI) and its shareholders.
“After exhaustive discussions in several meetings, the Board of Directors of the Corporation, upon the recommendation of the Organizational and Business Development Committee, approved the terms and the execution of the MoA,” it said.
The deal covers Vitarich’s acquisition of breeder farm facilities — including land, improvements, equipment, 125,000 common shares of stock, and advances of BCI shareholders.
BCI is a private domestic corporation engaged in poultry and egg production, among others, with operations in Davao. The transaction will be subject to a due diligence review, which will begin after the signing of the MoA and must be completed within 90 days from the submission of all documents requested from BCI and its shareholders.
“Should the conditions be fully satisfied and the intended transactions eventually materialize, the above-mentioned facilities will be used as VITA’s breeder farm, while BCI will become a subsidiary of VITA,” it said.
Vitarich said the acquisition is not expected to have any adverse impact on its operations.
“Rather (assuming conditions are met), the transaction is a strategic step to the current breeder farm operations of VITA,” it added.
Vitarich shares closed flat at 55 centavos apiece on Tuesday. — Beatriz Marie D. Cruz
