Del Monte files for IPO application

Del Monte Pacific Limited is planning to reduce its stake in wholly-owned Philippine subsidiary, Del Monte Philippines, Inc. (DMPI) through an initial public offering of secondary shares.

In a disclosure to the Philippine Stock Exchange, DMPL said DMPI has filed application documents for a proposed IPO of common shares comprising the sale of 20 percent of its issued capital by DMPL.

DMPI intends to list the Offer Shares on the Main Board of the PSE thus it has filed for the registration of the Offer Shares with the Securities and Exchange Commission of the Philippines.

It has also applied for the listing of all the issued and outstanding common shares of DMPI, including the Offer Shares, with the PSE. The Offering will be subject to receipt of the requisite regulatory approvals and market conditions.

DMPL said it plans to use the expected proceeds from the Offering primarily for debt repayment and general corporate purposes.

BDO Capital & Investment Corporation has been appointed as the Issue Manager, Sole Global Coordinator and Sole Bookrunner for the Offering.

Approximately two-thirds of DMPI’s sales come from the Philippines, predominantly under the Del Monte brand, and one-third from the export markets under the S&W brand and through private label.

DMPI is a market leader in canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup, and is a household name in the Philippines.

It also operates one of the world’s largest fully-integrated pineapple operations, and has been growing and processing pineapple for over 90 years, supporting its market leadership and high quality products.

DMPL will be seeking Shareholders’ approval for the Offering at an extraordinary general meeting to be convened. (JAL)