Investors buy ₱50 M worth of Fruitas shares

Fruitas Holdings reported a special block sale of ₱50 million worth of its shares by a high net worth individual investing in the company’s high growth potential.

In a disclosure to the Philippine Stock Exchange, the firm said the buyer is businessman Jefferson Y. Ngo, belonging to the family that owns Solanda Enterprises which also owns the JT Centrale community mall in Sta. Cruz, Manila.

Ngo acquired 25 million Fruitas shares at P2 per share, a 20.5 percent premium to the closing price on December 15.

The shares were acquired from Lush Properties Inc. which is 97 percent-owned by Fruitas founder and President Lester Yu.

Ngo has been a stock investor for quite some time, particularly in the US markets where he invests in blue chips like Berkshire Hathaway, Amazon and Apple, but admits that Fruitas is the first Philippine company where he will take a significant position.

He said that very few companies have the resources and capability to operate and expand a wide network like Fruitas is doing and the company becoming “the Jollibee of kiosks.”

Ngo himself is a coffee connoisseur and runs a small coffee business.

"When I thought about how large I want to grow my own business, I already saw it in Fruitas. Between investing in my own business and taking a long-term position in a well-established company with great potential even at a premium, it was an easy choice," Ngo said.

Yu said he is not concerned about being slightly diluted and “the management of Fruitas looks forward to potential synergies with its shareholders.”

"We live in a time where we need to collaborate and draw ideas from other experienced families. When I had a chat with our new investor, he was also in sync with our vision of having each Filipino household consume a Fruitas product everyday," said Yu.

He added that, while there is no further agreement with the investor for the acquisition of more shares, “he can buy more shares in the market.”