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Friday, October 20, 2000
 
AC ( 10/20/2000 : AFX )
Ayala Corp is currently in discussions with four to five potential buyers of Pure Foods Corp, vice chairman Fernando Zobel de Ayala said. Zobel de Ayala told AFX-ASIA on the sidelines of an HSBC conference here that "about four to five companies" have offered to either buy into or fully acquire the conglomerate's food unit. "We have been approached by a couple of different parties in recent months to see if we'll be prepared to divest a substantial stake in Pure Foods as part of a larger consolidation in the food sector which is greatly needed in the Philippines," he said. "Our answer to that is 'yes, we're prepared to listen to offers at this point'." These companies, which he refused to identify, are "looking very closely at Pure Foods" but "nothing conclusive" has been arrived at during the discussions. "Pure Foods is doing very well right now. It went through some years of difficulty but in the past few years, it has been doing very well... so it's not something we've put up in the market for sale." Nevertheless, he said Ayala Corp is "entertaining offers at this time and if the right offer is made, we may seriously consider that." In the first half, Pure Foods's net profit, excluding non-recurring items, fell to 310 M pesos from 388 M a year earlier, reflecting lower selling prices of its poultry and flour products. Sales, however, rose to 7.851 B pesos from 6.521 B due to higher turnover of processed meats, poultry, livestock and feeds products. In Manila, newspaper reports said some of the major food companies there, including San Miguel Corp and Swift Foods Corp are interested in acquiring Pure Foods. Zobel de Ayala said the potential divestment in Pure Foods is in line with Ayala Corp's strategy to focus on its three key businesses -- banking, property development and telecommunications. "Given the current situation in the region since the regional currency crisis in 1997, everyone has to focus on key businesses. In our case, the banking, land and telecom sectors are becoming the larger core areas of the group," he said. Other non-core operations of the group include food and agribusiness, electronics through Integrated Microelectronics Inc, and utilities through Manila Water Co Inc. Ayala Corp recently set up iAyala Co Inc which will serve as its technology holding unit.
- posted by StockMarket @ 9:40 PM

 
AC ( 10/20/2000 : AFX )
Ayala Corp is not holding back its investments in its businesses despite the country's current political problems, vice chairman Fernando Zobel de Ayala said. Speaking to AFX-Asia here after his speech at HSBC's Asian 100 conference, the vice chairman said the group will be proceeding with its 5.0 B peso capital spending planned for this year. It invested some 1.4 B pesos in the first half. "We're not holding back any investments," he said, adding the balance will be ploughed into the group's various projects during the rest of the year. "There's no question that the challenges we're facing right now in the country are tough. However, we keep on moving. As a group, we have been through difficult times and we have shown the proper strategic moves ... (which) if done properly, can result in very good positions for us when the situation turns around. We're applying the same principle in all our businesses," he said.
- posted by StockMarket @ 9:40 PM


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