Roxas Holdings Inc. is in talks with three local companies interested in acquiring its sugar milling and refining facilities in Nasugbu, Batangas.
RHI chief finance officer Celso Dimarucut said in an interview at the sidelines of the annual stockholders’ meeting Tuesday the company received interests from other entities after the Philippine Competition Commission blocked the planned sale of the Nasugbu assets under Central Azucarera Don Pedro Inc. Universal Robina Corp.
“After PCC disapproved the deal, we have received interests from other entities and right now there are on going discussions and due diligence,” said Dimarucut.
“Right now there are three interested companies,” he added. The Batangas assets have a total book value of P6.5 billion.
Dimarucut said RHI would use proceeds from the sale of the Nasugbu sugar milling and refining facilities to reduce the company’s debts currently at P11 billion.
Lucio Tan-owned Tanduay Distillers Inc. earlier said it was interested in acquiring RHI’s Batangas assets. Tan through holding firm LT Group Inc. also owns a 30.9-percent interest in Victorias Milling Co.
Meanwhile, Dimarucut said RHI was expected to register net loss this year due to lower sugar production.
RHI president Hubert Tubio said the group would mill less than 3 million metric tons of cane from 3.1 million MT in 2018.
He said for the Batangas milling plant alone, CADPI was expected to mill 813,000 MT, the lowest in 31 years. The company blamed the lower production largely to current dry weather conditions.
For the ethanol business, the group is expected to produce 70 million liters of alcohol this year, slightly higher than a year ago.
But since prices of feedstock, like molasses, had gone up, Tubio said the “margins will be eroded”.
“Based on first-quarter results, we have reported a loss. We are anticipating that because of current environment, we may continue to tread on that kind of path for this year,” said Dimarucut.