Sep 23, 2012

Filipino Splash announces tieup talks with Myanmar’s Dragon group

SPLASH Corp., a listed personal care products manufacturer, is continuing its diversification move into the food sector; this time expanding in overseas markets like Myanmar.

In a statement, Splash said it is “working together” with the Dragon Group of Companies, said to be one of Myanmar’s biggest business conglomerates, to jointly explore opportunities in the food sector.

In a text message sent over weekend, Splash chief financial officer Veneranda Tomas said talks are focused on the “meal solution” segment. “It’s purely exploratory at this stage and nothing is definite,” Tomas said. Meal solutions are usually ready-to-eat packaged food items. She added that both parties have not signed any exclusivity agreement.

The Dragon group is involved in property development, construction, timber business, agriculture and plantation, and hospitality and retail business in Myanmar, the statement said.

Splash announced in July its plans to enter into Myanmar, one of the burgeoning economies in the Southeast Asian region.

Rolando Hortaleza, Splash president and chairman, earlier announced the company’s commitment for a stronger presence in Myanmar during Foreign Minister Maung Lwin’s visit in the Philippines in July.

“Splash will continue to establish stronger corporate relations with the Myanmar business community. We look forward to expanding our business in Myanmar, as well as other Asian countries,” Hortaleza said in the statement.

Splash added that its board approved the acquisition of 100 percent of local firm Moondish Foods Corp. (MFC) for a maximum acquisition cost of P33 million. Moondish produces canned Filipino food viands like Bicol express, laing, among others.

MFC has existing products that are doing well not only in the Philippines, but also in the international market, Tomas said. About two-thirds of Moondish’s sales are exported to north America, the Middle East, Japan and Europe.

Splash entered into the food business when it acquired the food manufacturing arm of Barrio Fiesta in 2011. It manufactures food products, such as sautéed shrimp paste, sauce, fruit preserves, ready-to-eat canned meals, and other condiments.

Splash shares rose 3.93 percent to P1.85 each on Friday, giving the company a market value of P1.2 billion.

Source: Business Mirror