TOKYO, Japan — Infrastructure conglomerate Metro Pacific Investments Corp., or MPIC, is still expecting to close its investment deal with Axelum Resources Corp. or ARC despite the latter's lower-than-expected financial reports.
In an interview here, MPIC chief finance, risk, and sustainability officer Chaye Cabal-Revilla said the parties will meet this week to come up with a resolution as Axelum has been "very far from their numbers."
"(The deal) is still in the process. The due diligence was extended because the expected outcome in terms of performance in our earlier due diligence has not happened, so we have to dig deeper into the assumptions and the KPIs," Cabal-Revilla told reporters.
"But I think from our perspective and theirs, we want to be able to close it hopefully by the end of the year, subject again to the extended due diligence and them being able to explain their forecast and the results and outcome of their numbers," she added.
Axelum, in a stock report last week, said it ended the first nine months of the year with a core net loss of P118.12 million. Revenues, on the other hand, clocked in at P4.28 billion, translating to a gross profit of P737.91 million
Profit flat
During the third quarter alone, ARC's gross profit was flat at P247.53 million, which was only one percent higher than the previous quarter due to enterprise-wide cost containment initiatives.
From July to September, ARC generated sales of P1.46 billion driven by its coconut water segment.
Nonetheless, ARC president and CEO Henry J. Raperoga is still optimistic to "finish the year on a high note, while setting ourselves up to be in the strongest position for a major turnaround in 2024."
"We are already seeing demand uptick in the United States, combined with other positive market indicators, which should further our momentum heading into the holiday peak season," Raperoga said.
MPIC, through Metro Pacific Agro Ventures Inc. or MPAV, first announced its plan to invest P5.32 billion to acquire ownership in ARC in February.