Arran Investment Private Ltd., a Singapore-based private financial firm, has acquired an 11-percent stake in Century Pacific Food Inc. (CNPF), maker of Century Tuna sardines.
It said in a disclosure to the stock exchange it exercised the shares exchange option under the P3.376 billion loan deal signed with CNPF in April last year.
The loan was secured by an exchangeable loan agreement that enables CNPF to pay cash upfront or an 11 percent shareholding in the tuna canner.
CNPF said its parent firm, Century Pacific Group Inc, received an exchange option notice from Arran Investment last April 30 saying that the Singaporean-based firm will avail of the shares exchange option.
“The exchange option notice from Arran confirms their exercise of the exchange option and cements their entry into CNPF,” the company said.
“Arran, an affiliate of GIC Private Limited, will own approximately 11 percent of CNPF’s issued and outstanding shares, reducing the parent’s ownership in CNPF to 79 percent.
Shares will be transferred from the existing shares owned by the parent and will not cause dilution to CNPF’s public investors,” it said.
The 11 percent interest in CNPF is equivalent to 245.5 million issued and outstanding shares priced at P13.75 each, which is the firm’s initial public offering (IPO) price last year. At the end of Wednesday’s trading, CNPF shares were last traded at P19.62 apiece.
The loan agreement last year was made to finance CNPF’s growth and expansion of the company and its existing subsidiaries, as well as its entry into new businesses.
Established in 1981 to manage Singapore’s foreign reserves, Arran’s parent firm GIC is among the world’s largest fund management companies with Assets under Management of well over US$100 billion.
In the first quarter this year, CNPF booked P438 million in net income, which is 37 percent higher than the P320 million profits of the same period last year.
Incorporated in 2013, CNPF is engaged in manufacturing canned and processed fish, canned meat, dairy and mixes and exporting tuna under the Po family’s umbrella conglomerate Century Pacific Group Inc.
CNPF has three wholly owned subsidiaries for warehousing (Allforward Warehousing Inc.), for making dairy and mixes products (Snow Mountain Dairy Corp.), and for canned and processed fish products (General Tuna Corp.).
It also has two affiliates: fast food retail arm Yoshinoya Century Pacific Inc. and Pacific Meat Company Inc. that holds the Swift and Argentina brand.
CNPF manufactures household brands such as Century Tuna, 555, Blue Bay, Fresca and Lucky 7 tuna for canned tuna products; Argentina, Swift, Shanghai and Wow for meat products; Angel and Birch Tree for canned milk and dairy mixes; Kaffe de Oro for coffee mixes; and Home Pride brand for the flavor mixes.
The canned food producer claims to have cornered 87 percent of the local market for canned tuna, 43 percent of canned meat, 28 percent of Vienna sausage and 26 percent of luncheon meat. It also ships products to major markets in Asia, Australia, Europe, Middle East and North America.