Victorias Milling Buys Alcohol Firm For ₱2.3-B

Listed firms Victorias Milling and LT Group have disclosed separately today the purchase by the sugar firm of Asian Alcohol Corp., a subsidiary of Tanduay Distillers under the corporate umbrellas of tycoon Lucio C. Tan's LT Group.

Photo Insert: Tanduay Distillers is under the corporate umbrellas of tycoon Lucio C. Tan's LT Group.

According to the disclosure Tanduay Distillers, Inc., a wholly owned subsidiary of LT Group, together with Prior Holdings Inc. and Castelbridge Investment Corporation signed a Sale and Purchase Agreement for the sale of Asian Alcohol Corporation (AAC) to Victorias Milling Company, Inc.

A total of Seven Hundred Thirty-Eight Million Three Hundred Thirty Thousand (738,330,000) common shares of AAC (equivalent to 100% of the outstanding capital stock thereof) were sold to Victorias Milling Company, Inc. for a purchase price of Two Billion Two Hundred Ten Million Pesos (PhP2,210,000,000.00). AAC is a manufacturer of rectified and denatured alcohol.

Victorias told the Philippine Stock Exchange that it has been focused on becoming a fully integrated sugar business by diversifying into ethanol and power.

Since 2018, the Company upgraded and expanded its existing distillery facility in Manapla, Negros Occidental, to produce ethanol, which now has a production capacity of 36 million liters.

Acquiring a similar business will provide cost synergy in terms of shared manpower, information technology, and supply chain. The company also has access to expertise that can streamline the processes to optimize production, and increase the recovery and efficiency of the plants.

In a Sale & Purchase Agreement, the shareholders owning 100% of AAC have agreed to sell all their shares to the Issuer as a result of which, AAC shall thereafter effectively become a wholly-owned subsidiary of the Issuer. Completion of the transaction is expected before the end of 2022.

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