RFM Corp. has raised around P66.3 million from a treasury share sale on Monday to one of the many long-term block investors interested in having a stake in the company.
In a disclosure to the Philippine Stock Exchange, RFM said its board of directors “informally consented” to sell 15.112 million treasury shares on Friday, apart from the 306,600 treasury shares previously approved for sale.
A cross transaction for 15.417 million shares was executed on Monday at P4.30 per share.
“A long-term investor wanted to purchase 15.417 million treasury shares and the corporation deemed it fit to sell the same. The corporation believes that a long-term hold on the subject treasury shares will result in stability,” the company said.
“The corporation intends to sell the authorized number of treasury shares as selling opportunity presents itself and up to the time when the total approved amount for sale is exhausted. The corporation often receives queries from quality investors if there are shares that they can buy in substantial blocks,” it added.
The shares sold on Monday comprise less than 1 percent of the 3.5 billion issued and outstanding shares of RFM. The sale “has no substantial effect on the public float level,” according to the food and beverage firm.
RFM is engaged in processing and manufacturing flour and flour-based products like pasta, sauces and cake mixes, milk and juice drinks, canned and processed meats, as well as ice cream.
Aside from Selecta ice cream, Fiesta and Royal pasta brands, the labels RFM carries include Sunkist Juices, Selecta Milk, Vitwater and Alo Green Tea, White King Hot Cake and Butterfresh Margarine.