Japan-based snack confectionary manufacturer Calbee Inc. agreed to sell its stake in Philippine joint venture Calbee-URC Inc. to partner Universal Robina Corp., the food manufacturing arm of the Gokongwei Group.
Calbee said in a statement posted on its website it signed a share transfer agreement with URC involving the sale of 32.7 million shares, which is equivalent to a 50-percent stake in Calbee-URC, for P170.60 million.
The transfer of shares and the termination of the joint venture partnership is set on Sept. 30, 2018.
Calbee established a 50:50 joint venture company with URC which has strong sales and brands in the Philippine market in 2014.
“The joint venture aimed to grow sales of Calbee products and expand market share in the Philippines. However, after three years passed from the start of production and sales of Curc products, based on the review of overseas business strategy of Calbee and by reviewing the profitability of the business, Calbee discussed with URC and mutually agreed that URC would take over the joint venture business,” Calbee said.
“As the snack market in the Philippines is still promising and expecting to grow continuously, even after closing the joint venture agreement, Calbee agreed with URC that Calbee continued the licensing to URC to produce and sell Calbee brand products,” it said.
Calbee-URC posted a a net loss of P100.38 million in 2015, P85.33 million in 2016 and P95.65 million in 2017.
Calbee is mainly engaged in the manufacture and sale of snack confectionary, bakery food and cereal food. It manufactures and sells potato series snacks such as potato chips, wheat series snacks and corn series snacks, bakery food such as confectionary bread and prepared food bread, as well as cereal food, among others.