LISTED tuna canner Century Pacific Food Inc. (CNPF) has raised P2.7 billion in fresh funds from an overnight equity placement conducted by its parent Century Pacific Group Inc. (CPGI).
In a disclosure to the Philippine Stock Exchange (PSE), the company said 143 million common shares priced at P18.75 apiece were sold in an overnight book building conducted by CPGI.
The P18.75 selling price is a 2 percent discount from its 60-day volume weighted average price of P19.13 per share, and a 5 percent discount from its last close of P19.68 each on Tuesday.
“The transaction was conducted to broaden CNPF’s shareholder base and is in response to the overwhelming demand from global institutional investors for additional shares and improved trading liquidity,” the company said.
“The sale represents approximately 6.4 percent of CNPF’s total issued and outstanding stock, effectively increasing public free float from 10.4 percent to 16.8 percent,” it added.
Evercore Asia was the exclusive financial adviser of the transaction, while Deutsche Bank AG and UBS AG acted as the joint bookrunners and placement agents.
Previously, Arran Investment Private Ltd., an affiliate of Singapore’s sovereign wealth fund Government of Singapore Investment Corp. Private Limited (GIC), also recently exercised its option to convert a P3.376-billion loan made to CPGI into approximately 11 percent stake in CNPF.
CNPF said the shares sold in the placement and to GIC were “all previously owned by CPGI and will not cause ownership dilution to any public investor.”
After the placement and debt to equity conversion by GIC, parent firm CPGI remains the largest shareholder of CNPF with a 72 percent stake in the listed company.
CNPF booked net income of P438 million in the first quarter, up 37 percent from 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 CPGI, formerly Century Canning Corp.
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. which 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.