Philippine Stock Exchange (PSE)-listed Del Monte Pacific Ltd. (DMPL), given that it is also listed at the Singapore Exchange Securities Trading Ltd. (SGX-ST), has received the go signal from Singaporean bourse to proceed with its planned acquisition of Del Monte Corp.’s consumer food business.
A disclosure to both SGX-ST and PSE showed that DMPL received an “in-principle approval [AIP]” from SGX-ST concerning the proposed acquisition of Del Monte Corp.’s consumer food business.
However, the AIP granted by the SGX-ST to the company is still subject to compliance with the Singaporean bourse’s listing requirements and shareholders’ approval.
“Please note that the AIP granted by the SGX-ST to the company is not to be taken as an indication of the merits of the proposed acquisition, the company and/or its subsidiaries,” Yvonne Choo, DMPL company secretary, told both exchanges.
“The circular containing information on the proposed acquisition and the notice of general meeting to seek shareholders’ approval for the proposed acquisition will be dispatched to shareholders in due course,” she added.
For his part, PSE Chief Operating Officer Roel Refran said in a text message that the local bourse does need to approve the transaction, but if there are shares issuances relating to the deal, then the normal listings application will have to be submitted to them for consideration.
In November last year, DMPL announced that it will acquire the US-based consumer food business of the Del Monte Foods group for $1.7 billion, or approximately P73 billion.
Just more than two weeks ago, DMPL said that it will borrow from two locally listed banks, BDO Unibank Inc. and Bank of the Philippines Islands, as much as $515 million to bankroll the acquisition.