RFM sells stake in semiconductor firm

Food and beverage giant RFM Corporation announced yesterday the completion of the sale of its shareholdings in US Nasdaq-listed PSi Technologies Holdings, Inc., in a move to refocus on its core food and beverage business.

RFM president and CEO Jose A. Concepcion III confirmed that "RFM Corporation and Merrill Lynch Global Emerging Markets Partners, L.P., have entered into a definitive agreement regarding a transaction whereby Merrill Lynch Global Emerging Markets Partners will acquire an additional 34.47 percent of the stock of PSi Technologies Holdings, Inc. from RFM."

Merrill Lynch Global Emerging Markets Partners has been a minority shareholder of PSi Technologies since 1997. Following the transaction, Merrill Lynch Global Emerging Markets Partners will own 53.74 percent of the stock of PSi Technologies.

Concepcion said that "the move is necessary for RFM to focus back to its core businesses so that it can consolidate its capital and management resources to consumer-oriented food and beverage categories, where RFM is known for and has established a sustainable competitive edge. The refocusing becomes imperative as well amidst a business environment that has increasingly become very competitive."

"We want to devote more attention and resources to our fast-growing and high margin core refreshments businesses like softdrinks (under Cosmos), milk and juice drinks (Selecta Moo and Sunkist brands) and ice cream (Selecta)," Concepcion added.

"Nevertheless, the investment in PSi has also proven to be very rewarding since PSi has consistently exhibited growth and profitability, increasing shareholders value over the years. RFM first invested in PSi technologies as a minority shareholder in the late 1980’s when it was still Pacific Semiconductors Inc., and became majority owner in 1995. It was an effort to diversify the risk of RFM and to participate in the Philippines most world-competitive and fastest-growing export industry," Concepcion said.

With the strategic guidance and management resources of RFM, PSi was gradually turned around from a financially-strapped semiconductor business to a world leader in power device assembly and test services, and the first Filipino firm to be listed in the technology-driven Nasdaq.