Victoria Milling drops acquisition of Tanduay Distillers’ ethanol unit

VICTORIAS Milling Co., Inc. and LT Group, Inc. announced on Tuesday that both parties agreed not to proceed with the sale of Asian Alcohol Corp., a rectified and denatured alcohol firm.

“In view of recent global as well as local economic and political events affecting the relevant industries, both parties have mutually agreed not to proceed with the transaction,” the firms said on Tuesday.

Asian Alcohol is a subsidiary of LT Group’s Tanduay Distillers, Inc., which is said to have recognized the present difficult environment surrounding the sugar industry.

“[Tanduay Distillers will] continue to find other beneficial avenues for deriving best value from its investment in Asian Alcohol,” it said.

In September, both companies announced in separate disclosures the signing of a sale and purchase agreement for the 100% outstanding capital stock in Asian Alcohol Corp.

The agreement was signed with two other shareholders — Prior Holding, Inc. and Castelbridge Investment Corp. — and covered 738.33 million common shares of Asian Alcohol.

The purchase price was P2.21 billion with the transaction expected to lower Victorias Milling’s operating costs and improve its margins.

Victorias Milling previously said that it will be focusing to become a fully integrated sugar business by diversifying into ethanol and power generation.

On the stock exchange on Tuesday, shares in LT Group closed unchanged at P8.91 apiece, while shares in Victorias Milling also closed unchanged at P2.80 each. — Justine Irish D. Tabile

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top