The recent decision of Metro Pacific Investments Corp., through wholly-owned subsidiary Metro Pacific Agro Ventures Inc. or MPAV, to acquire a stake in coconut product processing firm Axelum Resources Corp., or ARC, was meant to make farmers' income sustainable.

"Most importantly, this will allow us to deepen our societal impact by providing sustainable livelihood to coconut farming communities, and thereby contributing to the continuous development of the country's agriculture sector," Axelum chairperson and CEO Romeo Chan said.

MPAV first announced its plan to acquire ownership in ARC in February.

The transaction covers the acquisition of 34.76 percent equity stakes in ARC — a fully integrated manufacturer, exporter, and retailer of agriculture products.

Higher patronage level

Apart from helping augment focus on exports, MPAV vowed that it will help boost ARC's presence in the local market by "nurturing a higher level of patronage of their products by local consumers."

ARC manufactures and exports high-quality coconut products, and is one of the major suppliers of Vita Coco, the global market leader in coconut water. It is also a major exporter of desiccated coconut, coconut milk/cream, coconut cooking oil, and other coconut products. 

ARC's products are widely distributed in the United States, Canada, Australia, New Zealand, Eastern Europe, the Middle East, Japan, and some countries in Asia.

Axelum informed the Philippine Stock Exchange on Wednesday that it has sealed the P5.32-billion deal for MPAV to acquire a 34.76 percent stake in Axelum. 

"Whilst the total highest consideration for the Transactions payable by the Group will remain unchanged at approximately P5.32 billion or approximately P3.83 per share, the basis for payment of consideration under the SPA has been amended," First Pacific said.

"To the effect, an initial payment of P3.37 billion would be payable on or around 22 December 2023, with additional payments payable upon achievement of certain EBITDA milestones up to the original purchase price under the original share purchase agreement or SPA," it added.