VMC corporate information officer Eva Rodriguez disclosed to the Philippine Stock Exchange (PSE) yesterday that they were informed by their stock and transfer agent Fidelity Stock Transfers of the bank’s acquisition of 36.89 million VMC shares with the last transaction processed on May 25, 2006.

Trading of VMC shares are still suspended but were last traded at 87 centavos per share. The firm has 170.4 million outstanding shares.

Rodriguez asked the PSE for more time to disclose more details regarding the acquisition as they have yet to receive the Statement of Change in Beneficial of Securities from Deutsche Bank.

Omar Byron T. Mier, Victorias Milling chairman, said earlier that the company foresees trading of its shares resuming in five to six years. Trading of its shares remains suspended, since the company has yet to complete its rehab.

VMC expects to post a profit in two to three years. The firm recently became a member of the Lucio Tan Group of Companies through a capital infusion of P300 billion last year.

Mier said a lot of opportunities are open to Victorias Milling to make a profit in the coming years. Sugar prices are going up in the world market and there is a new demand for it for the production of ethanol.

The sugar miller’s present cash flow of P900 million to P1 billion, he said, would allow the company to settle its debts until next year.

Interest payments this year amount to P360 million, while principal debt plus interest due in 2007 ranges from P700 million to P800 million.

To improve its financial position, Victorias Milling is also selling some assets, including unit Victorias Food Corporation. Mier said the company is talking to prospective local buyers and hopes to close a deal within the year.

The company has implemented a mass-retrenchment program, which decreased the number of its mill employees to 1,300.

The company, whose fiscal year begins every August, reported a P170,655 net income for the period of August to November 30, 2005, from a net loss of P88,388 in the same period in 2004.

Victorias Milling, however, incurred losses from operations and accumulated a deficit of P3.527 billion and P3.7 billion as of November 30, 2005, and August 31, 2005, respectively. The company had a capital deficiency of P1.6 billion and P1.8 billion as of November 30, 2005, and August 31, 2005, respectively.(JAL)