VMC exit shifts First Pacific focus to RHI

MANILA, Philippines - Hong Kong-based conglomerate First Pacific Co. Ltd. is now focusing its efforts on strengthening the operations of Roxas Holdings Inc. following the sale of all its shareholdings in sugar refining giant Victorias Milling Co. Inc.

In a statement, First Pacific said it completed the divestment of P2.16 billion worth of shares in VMC, equivalent to 14.8 percent of the sugar firm.

VMC bought back 300 million shares in the company while the LT Group of tycoon Lucio Tan through a subsidiary acquired a total of 131.9 million shares.  The shares were sold at P5 apiece.

The sale finally puts an end to a long fight for control of the country’s largest sugar company.

 Notwithstanding its exit from VMC, First Pacific said it remains committed to the Philippine sugar industry through its investment in RHI, a leading sugar and ethanol producer.

First Pacific managing director and chief executive officer Manuel V. Pangilinan said the group would now focus its management and financial resources within the industry on RHI.

“We are focusing our investment in the Philippine sugar industry on RHI and preparing for its rights issue announced earlier,” Pangilinan said.

RHI announced last week that its board of directors approved a rights offering of common shares to all shareholders. 

The offer size, entitlement ratio and offer price, however, have yet to be set.

RHI supplies about 18 percent to 20 percent of the country’s sugar production. It has production facilities in Nasugbu, Batangas where is started operations since the 1920s.