Pure Foods shares reclassification OKd

MANILA, Philippines - San Miguel Pure Foods Co. Inc. (SMPF) has obtained the Securities and Exchange Commission’s nod to reclassify 40 million common shares into non-voting and cumulative preferred shares.

SMPF, the food manufacturing unit of food and beverage giant San Miguel Corp., is planning to raise up to P15 billion from a preferred share offfering targeted this quarter.

Based on its registration statement filed with the Securities and Exchange Commission, SMPF plans to sell the preferred shares at P1,000 apiece.

BDO Capital and Investment Corp., The Hongkong and Shanghai Banking Corp. Ltd., SB Capital Investments Corp. and Standard Chartered Bank are joint issue managers and lead underwriters for the share sale.

Proceeds from the issue will be used to partly fund potential investment opportunities as well as geographical expansion.

The preferred share issue is part of a program to raise a total of P50 billion to fund its expansion and diversification into new businesses including power generation, water and infrastructure.

 SMPF’s planned preferred share issuance followed failed negotiations between San Miguel and two prospective buyers — the consortium of the Campos family and private tuna canner Century Pacific Group, and Universal Robina Corp. of the Gokongwei family.

San Miguel rejected their offers since they wanted to acquire 100 percent of SMPF while the conglomerate was only willing to divest up to a 49-percent stake.

San Miguel owns 99.92 percent of SMPF, which owns the Purefoods, Magnolia, Monterey Star, San Mig Coffee and B-Meg brands.