San Miguel’s Purefoods awaits SEC’s nod for 15-B share sale
The food arm of diversified conglomerate San Miguel Corp. ( SMC) is now waiting for the approval of the Securities and Exchange Commission (SEC) for its proposed 15-billion share sale, which it will use to redeem its outstanding preferred shares issued in 2011.
San Miguel Purefoods Company Inc. (Purefoods), on its recent filing with the SEC, said it intends to hold a primary offer of up to 10 million Perpetual Series 2 Preferred Shares with an oversubscription option of up to 5 million Perpetual Series 2 Preferred Shares.
With the shares priced at 1,000.00 apiece, the issuance is expected to raise as much as 15 billion.
On its prospectus, the company specified that it will use the net proceeds of the offer to redeem its outstanding preferred shares with an offer price of 1,000, which are callable starting March 3, 2014 or any dividend payment date thereafter.
Issued in 2011, proceeds from the issuance of the outstanding preferred shares were used to pay SMC for the brands and Vietnam food business acquisitions, as well as for general corporate purposes.
“In case the net proceeds of the offer will not be sufficient to redeem the Outstanding Preferred Shares, the balance will be financed from the Company’s funds,” Purefoods told the SEC.
To be officially listed and traded on the main board of the Philippine Stock Exchange on March 12, 2015, the offer period for the share sale shall commence on February 16, 2015 and end on March 5, 2015.
“The company and the Joint Issue Managers, Joint Lead Underwriters and Joint Bookrunners reserve the right to extend or terminate the Offer Period with the approval of the SEC and the PSE,” Purefoods noted.
BPI Capital Corporation, China Banking Corporation, RCBC Capital Corporation, SB Capital Investment Corporation, and Standard Chartered Bank are the ones appointed by the company as its joint Issue managers, joint lead underwriters, and joint bookrunners for the transaction.
On November 6, the company already made a disclosure to the local bourse regarding the said offer.
In that particular filing, however, Purefoods said its board allowed the company to issue up to 25 million preferred shares at 1,000 per share.
Purefoods is the company that owns and sells brands like Magnolia, Monterey, Star, San Mig Coffee, B-Meg brands, among others.
During the first nine months of the year, the listed firm recorded flat earnings of 2.7 billion due to higher costs caused by Typhoon Glenda and the Manila port congestions.