LISTED holding firm A Brown Co., Inc. on Tuesday said that its subsidiary bought parcels of land spanning 70,000 square meters and a palm oil milling plant in Barobo town in Surigao del Sur province.
In a stock market disclosure, A Brown said Surigao Greens Agri Corp. forged an asset purchase agreement for the acquisition. It said the milling plant in Brgy. Tambis has a factory building and machinery with a rated capacity of 10 metric tons per hour.
“The acquisition will also provide operational and supply chain synergies with existing palm oil milling and refinery facilities in Impasug-ong, Bukidnon that are currently operated by A Brown Energy and Resources Development Inc. (ABERDI), another A Brown subsidiary,” the statement read.
The purchase is also said to “allow access to an existing and operational and cost-efficient crude palm oil milling plant that is able to source palm oil fresh fruit bunches” from nearby provinces’ plantation farms.
The company said the access to plantations as well as reduced logistics and transport costs enable operational and cost-cutting synergies, which increases business growth opportunities.
It recently invested in Surigao Greens Agri to engage in the business of processing, milling, and refining palm oil for manufacture and distribution.
A Brown is a holding firm with business interests in real estate developments to economic and socialized housing segments.
Its subsidiaries are engaged in power generation, manufacturing, and trading of palm oil and other palm products.
On the stock market on Tuesday, A Brown shares fell by two centavos or 2.53% to close at 77 centavos apiece. — Sheldeen Joy Talavera
