Victorias Milling Co. (VMC) in Negros Occidental has called off its purchase of Asian Alcohol Corp. (AAC) from the LT (Lucio Tan) Group Inc. following a mutual agreement.
This was disclosed by VMC in a report to the Securities and Exchange Commission (SEC) on Tuesday, December 13.
On September 1 the SEC and Philippine Stock Exchange were informed of the signing of a Sale and Purchase Agreement by Tanduay Distillers Inc., a wholly owned subsidiary of LT Group Inc., together with Prior Holdings Inc. and Castelbridge Investment Corp., for VMC’s acquisition of 100 percent of the outstanding capital stock of AAC.
However, in view of the 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, VMC informed the SEC on Tuesday.
“The unusual market developments in the sugar industry, not to mention the steady pressure against the Philippine peso in an industry that requires heavy capital expenditures constrained Victorias Milling Company Inc. to take a more prudent position on the transaction consistent with its status as a company under corporate rehabilitation,” it said.*