Listed processed meat manufacturer San Miguel Pure Foods Company Inc. expects to raise as much as P15 billion from a preferred share sale to redeem its outstanding callable preferred shares.
In a disclosure, the company said it will offer up to 15 million of its Series 2 preferred shares, priced at P1,000 each. The share sale consists of 10 million base offer shares and 5 million shares in case of oversubscription.
The size of the share offer has been downsized from its previous plan, announced on November 5 last year, to issue up to 25 million shares from the unissued capital stock of the company.
“[The P15 billion proceeds from the offer will] refinance the issuer’s P15 billion outstanding preferred shares which are callable on March 3 or on any dividend payment date thereafter,” Pure Foods said.
The company is set to redeem its previous preferred shares issued in March 2011. Proceeds of preferred share sale will refinance the redemption of the callable 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 before while revenues went up to P74.4 billion from P71.41 billion in the same period in 2013.
Incorporated in 1956, Pure Foods, together with its subsidiaries, is engaged in the manufacture and marketing of processed meat products of the San Miguel Group.
Among its product brands are Magnolia, Pure Foods, Monterey, Star, Dari Creme, B-Meg, San Mig Coffee, and JellyAce.