DEL MONTE PH UNIT FILES FOR P16.7-B IPO
THE Philippine unit of Del Monte
In a disclosure on Tuesday, DMPL said its wholly- owned unit Del Monte Philippines, Inc. ( DMPI) has filed for the registration of offer shares with the Securities and Exchange Commission ( SEC) and for the listing of all the issued and outstanding common shares of DMPI, including the offer shares, with the PSE.
DMPI plans to offer a total of 559.46 million shares, or 20 percent of its issued capital, at a maximum price of P29.88 apiece for total proceeds of approximately P16.7 billion.
“The Offering will be subject to receipt of the requisite regulatory approvals and market conditions,” be subject to various factors.
“The estimated maximum offering price should not be taken as that the proposed Public offering would achieve,” it said.
“The Company plans to use the expected proceeds from the Offering primarily for debt repayment and for general corporate purposes,” it said. “The prepayment of such loans will allow the DMPL Group to deleverage and strengthen its balance sheet. Such prepayment is allowed under the current loan facility agreements without any fee or penalty,” it added.
BDO Capital and Investments Corp. was tapped as the issue manager, sole global coordinator, and sole bookrunner for the transaction.
DMPL said it will seek shareholders’ approval for the offering at an extraordinary general meeting to be convened.
Del Monte Philippines is a market leader in the pineapple canning business. It produces pineapple juice and drinks, tropical mixed fruits, tomato sauce, spaghetti sauce, and tomato ketchup, among others.
Approximately two-thirds of its sales come from the Philippines under the Del Monte brand, while one-third comes from the export market under the S&W brand and through private label.