• Del Monte to sell $360-M shares to foreign investors


    Dual-listed firm Del Monte Pacific Ltd. (DMPL) plans to raise up to $360 million from an international offering of preferred shares to institutional investors.

    In a statement to the Philippine Stock Exchange (PSE), the company said it will conduct “an international offering of up to $360 million of US-denominated preference shares to institutional investors.”

    Proceeds from the offering will be used to refinance DMPL’s $1.67-billion acquisition of the consumer food business of Del Monte Corp. earlier this year.

    The offering will be coordinated solely by DBS Bank Ltd., and the shares will be listed on the Singapore Exchange Securities Trading Ltd.

    “The company intends to pursue this international offering in lieu of the previously disclosed follow on offering in the Philippines for timing and market considerations,” it said.

    In late October this year, Del Monte completed a domestic follow-on offering priced at P17 a share, allowing the company to raise P93.5 million. The follow-on offering was part of a series of fundraising activities to pay down debt arising from the Del Monte Foods acquisition.

    DMPL listed on the local bourse by way of introduction, a method requiring companies to conduct a follow on offering within 12 months of listing. The company listed on the Philippine Stock Exchange on June 10 last year while being listed on the Singaporean Exchange.

    DMPL reported a $21.9 million net loss in its fiscal first quarter this year due to DMFI acquisition-related expenses.

    DMPL owns the Del Monte brand across food and beverage categories in the Philippines as well as a joint venture in India, FieldFresh Foods, with one of India’s largest conglomerates, Bharti Enterprises.


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