The Securities and Exchange Commission has approved the plan of San Miguel Pure Foods Co. Inc. to offer P15 billion worth of preferred shares consisting of 15 million Series 2 preferred shares priced at P1,000 each.
SEC said in an email forwarded to media on Friday that it has approved Pure Foods’ proposed offering, which consists of 10 million base offer shares and another 5 million shares in case of an oversubscription.
Net proceeds will amount to P14.87 billion after taking into account related fees and taxes for the offering.
“The P14.87-billion net proceeds will refinance the issuer’s P15 billion outstanding preferred shares which are callable starting March 3, 2014 or on any dividend payment date thereafter,” Pure Foods said.
The company is set to redeem the previous preferred shares that were issued in March 2011. Proceeds of the new offer will refinance the redemption of shares.
The redemption record date will be on February 17, while payment will be on March 3.
In the first nine months of 2014, Pure Foods increased its net income to P2.72 billion from P2.69 billion a year earlier while its revenues went up to P74.4 billion from P71.41 billion in 2013.
Incorporated in 1956, Pure Foods and its subsidiaries are engaged in the manufacture and marketing of processed meat products of the San Miguel Group. Its product brand portfolio includes Magnolia, Pure Foods, Monterey, Star, Dari Creme, B-Meg, San Mig Coffee and JellyAce.