FOOD and beverage company RFM Corp. said Monday it raised about P100 million from the sale of 25 million in treasury shares last Friday.
In a disclosure to the Philippine Stock Exchange (PSE), the company said it sold the treasury shares at P4 apiece, the same amount as the shares’ closing price on Friday.
“The sale of 25 million treasury shares was through an ordinary cross-sale transaction and was not covered by any purchase agreement,” RFM said in a statement.
Under the Corporation Code of the Philippines, “treasury shares” are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation by purchase, redemption, donation or through some other lawful means. Such shares may again be disposed of for a reasonable price fixed by the board of directors.
RFM said that its board of directors “informally consented” to the sale of 28.5 million of its treasury shares. It said it needed to do the action “due to time constraints to call for and hold a special meeting for the said purpose.”
The company has 3.5 million more in treasury shares that will likewise be sold.
Last month, RFM said its net income in 2015 jumped 9 percent to P908.4 million from P833.74 million in 2014. Sales for the year hit an all-time high of P12.2 billion, up 11 percent from previous year’s P10.99 billion.
“Sales continued to come in strong especially for its consumer branded businesses like its pasta and ice cream units,” the company said.
Without citing any figures, RFM said that for its pasta brands Fiesta and Royal, sales grew at double-digit rates, faster than the single-digit growth rate of the entire pasta category.
Its Selecta ice cream brand likewise hit double-digit growth rates thanks to new product innovations and value propositions.