MACAY BUYING FOOD FIRM FOR P2B CASH

Macay Holdings, parent firm of RC Cola’s Philippine bottler ARC Refreshments Corp., has disclosed to the Philippine Stock Exchange (PSE) that it is buying for P2 billion cash Artemisplus Express, Inc., which operates Kitchen City for its planned foray into the food service business.

The company, which is owned by tycoon Alfredo Yao, told the exchange that the purchase “will bring to fruition Macay’s vision to expand its business portfolio to other consumer products and services in the country and in other Asian countries.

According to the disclosure, the transaction is supposed to close within the month from August 18 when it signed a share purchase agreement with the company with the valuation said to have been arrived at using the discounted cash flow analysis.

Macay submitted to the PSE the financials of the company it is buying. It submitted the 2017 and 2018 financial statements.

Based on the financials it submitted, ArtemisPlus Express posted losses of P25.082 million as of end 2017 and income of P25.458 million AS OF END 2018. Its gross profit as of end 2017 stood at P215 million while its gross profit as of end 2018 amounted to P413.8 million.

Also, according to the financials of the company Macay is buying, its receivables as of end 2018 amounted to P173 million of which P120.14 million were accounts that were neither past due or impaired; P12 million past due of 31 to 60 days; P4.44 million past due of 91-120 days and P22 million over 120 days. This compares with a total of P126 million receivables as of end 2017.

Macay said that the company’s financial highlights as of end-2019 is still under process.