Del Monte selling $360-M preferred shares

MANILA, Philippines - Food processing giant Del Monte Pacific Ltd. (DMPL), a company listed in both Singapore and the Philippines, has decided to tap foreign investors for its preferred shares sale worth $360 million.

In a disclosure to the local bourse late Friday, DMPL said it intends to conduct an international offering of up to $360 million to institutional investors.

Based on an earlier filing with the Philippines’ Securities and Exchange Commission (SEC), DMPL was seeking approval to sell 36 million preferred shares at an indicative price of $10 a piece.

The company intends to list the shares on the Singapore Exchange Securities Trading Ltd (SGX- ST) and has already submitted an application for the shares’ listing.

“The company intends to pursue this international offering in lieu of the previously disclosed Philippine offering for timing and market considerations,” the firm said.

DMPL said proceeds of the offering would be used to refinance the company’s acquisition of the consumer food business of US-based Del Monte Corp. earlier this year.

DMPL obtained a $350 million bridge loan from BDO Unibank, Inc. and another $15.6 million Metropolitan Bank and Trust Co. to acquire Del Monte Foods Inc. (DMFI).

DMPL completed the acquisition of DMFI in February this year for nearly $1.7 billion, jumpstarting the transformation of the former into a global branded food and beverage firm.

The acquisition was funded by a $970 million debt and $705 million equity, of which Del Monte financed by borrowing $630 million to add to the $75 million of its own money.

DMPL owns the Del Monte brand in the Philippines where it is the market leader across major food and beverage categories while DMFI owns the Del Monte brand rights for processed food products in the US and South America.