Del Monte sets dual listing in Phl, Singapore

MANILA, Philippines - Food and beverage firm Del Monte Pacific Ltd., controlled by the NutriAsia Group of condiments king Joselito D. Campos Jr., is all set to become the first Filipino company to be listed in both the Philippine and Singapore stock exchanges.

The dual listing will widen the investor base and increase the company’s market visibility, the food group said.

Del Monte said it “received approval-in-principle from the Philippine Stock Exchange (PSE) for the listing of, and permission to deal in, all its shares on the first board of the PSE.”

The listing in the local bourse is subject to the registration and permit to sell securities from the Securities and Exchange Commission (SEC) and compliance to the 10 percent public ownership requirement.

“The company has also received approval-in-principle from the SEC, which is conditioned on the submission by the company of certain documentary requirements,” Del Monte said.

Under the indicative timeline, trading of Del Monte shares is scheduled to start on June 10. NutriAsia Pacific Ltd., which owns 78.61 percent of Del Monte, will remove up to 150 million shares or 11.6 percent of Del Monte from the British Virgin Islands share register and transfer it to the Philippines’ share register prior to the first day of trading in the PSE.

No new shares will be issued in the planned listing by introduction, which allows a firm to join the PSE without having to sell shares to the public immediately.

But Del Monte said there might be an offer of vendor shares depending on the market’s condition. Vendor’s shares are stocks issued by a company in payment or in part payment for assets acquired from the vendor.

Del Monte, which debuted in the Singapore Stock Exchange (SGX-ST) in August 1999, has more than 7,000 shareholders, bulk of which are retail investors.

Should  stockholders request their shares to be removed from the Singapore registry. The shares will then be lodged with the Philippine Depository & Trust Corp.

“The proposed dual listing will provide the company with a platform to widen its investor base,” Del Monte said.

“In particular, it will enhance the company’s attractiveness to investors in the Philippines and to foreign investors interested in the Philippine stock market,” it added.

Being a public company attracts coverage from brokerage firms, which provide valuations and recommendations to the investing public.

Aside from Del Monte, PSE-listed tuna and salmon processor Alliance Select Foods International Inc. is planning to conduct a dual listing in the Singapore and Philippine bourses.

Del Monte produces, markets and distributes food, beverages, and related products in the Asia-Pacific region and the Indian subcontinent, and has supply deals with Del Monte trademark owners and licensees around the world.

Principal shareholder NutriAsia leads the Philippine market for condiments (Datu Puti and UFC), specialty sauces (Jufran and Mang Tomas) and cooking oil (Golden Fiesta).

In the first quarter, Del Monte’s earnings inched up two percent to $4.5 million from a year ago. Turnover jumped 17 percent to $87.4 million, driven by higher sales of the branded business in Asia, which is composed of Del Monte in the Philippines and the Indian subcontinent as well as S&W in Asia and the Middle East.

The 23,000-hectare plantation of Del Monte in Mindanao is the world’s largest fully integrated pineapple operation with a 700,000-metric-ton processing capacity.