Feeds and poultry producer Vitarich Corp. is expanding its capacity in Mindanao with a planned acquisition of breeder farm facilities in Davao del Sur for ₱280 million.

In a disclosure to the Philippine Stock Exchange, the firm said that, “After exhaustive discussions in several meetings, the Board of Directors of the Corporation, upon the recommendation of the Organizational and Business Development Committee, approved the terms and the execution of the Memorandum of Agreement.”

The MOA is between Vitarich Corp., Broilers Club, Inc., and the shareholders of Broilers Club and covers Vitarich’s purchase of the Davao breeder farm facilities, including land, improvements, equipment, 125,000 common shares of stock, and advances of Broilers Club shareholders.

Broilers Club is a private domestic corporation engaged, among others, in poultry and egg production, and the additional capacity (upon completion of the acquisition) is expected to produce as much as an eight percent increase in Vitarich’s total breeder output.

The acquisition still hinges on the results of the due diligence review by Vitarich, which will commence upon the execution and signing of the MOA and is expected to be completed within 90 days from the completion of all documents requested from Broilers Club and its shareholders.

“Should the conditions be fully satisfied and the intended transactions eventually materialize, the above-mentioned facilities will be used as VITA’s breeder farm, while BCI will become a subsidiary of VITA,” Vitarich said.

It added that, “At present, the transaction is not seen to have any adverse effects on VITA’s operations. Rather (assuming conditions are met), the transaction is a strategic step to the current breeder farm operations of VITA.”