Cargill's Black River ups stake in Philippines' AgriNurture

The Black River Capital Partners Food Fund increased its holding from 28.11% to 30.92% with the acquisition of 15,058,331 shares from Antonio L. Tiu, president and chairman of ANI.

According to a regulatory disclosure, the company also issued convertible bonds last month in favor of Black River, with a face value of PHP335 million ($7.52 million), an interest rate of 3% per annum, and term of three years.

ANI exports crops to Asia, North America, Europe and Middle East. Its operations are divided into four subsidiary groups: a farming unit for rice, fruit, and vegetable production, joint-venture farming and contract growing; another unit to handle the manufacturing and processing of produce; a distribution arm; and a retail group.

The distribution group aims to enter the Australian and US markets and expand its product portfolio to add processed foods, grains, and condiments.

Black River entered into an agreement with ANI in December 2011 to purchase a 28.11% stake for $30.45 million, when the company was looking to fund its local and global expansion.

Net sales increased 86% over the last two years to PHP2.767 billion in 2013 but operating profit dropped 24% over the same period to PHP155.3 million due to rising costs.

Black River is an independently managed subsidiary of Cargill. It was founded in 2003 and began managing third-party capital in 2004 for clients, including foundations, pensions, endowments, family offices and other institutional investors.

Its private equity strategies focus on three sectors - agriculture, food, and metals and mining. It launched a $400 million food fund in 2011 to invest in Asian firms.

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• Topics
• Southeast Asia
• PIPEs
• Philippines
• Agriculture
• Growth capital