MANILA, Philippines — The Po family’s Century Pacific Group has conducted a private placement for a three percent stake in Century Pacific Food Inc. (CNPF).
CPG said 114 million shares changed hands at P24.60 apiece for a total consideration of P2.8 billion. The deal was oversubscribed among long-only international and domestic institutional investors.
CPG chairman Christopher Po said the group saw some market opportunities at the holding company level.
“We will be deploying proceeds across various investments. Post transaction, CPG will continue to hold a majority stake in CNPF with 66 percent ownership,” Po said.
Following the private placement, the company does not expect any sale of CNPF shares by CPG for the foreseeable future.
“As a majority shareholder, we continue to support the long-term prospects of CNPF,” Po said.
Proceeds from the sale will be settled three trading days after crossing of the shares.
UBS AG, Singapore Branch (UBS) acted as sole placement agent for the transaction.
The transaction was successfully priced at a tight discount of 5.20 percent, CNPF disclosed.
CNPF’s share price closed at P25 per share yesterday, down by 3.66 percent.
The CNPF shares to be sold in the secondary block trade are all owned by CPG and will not dilute the shareholdings of CNPF’s existing public investors as of the date of the placement.
Furthermore, the transaction is expected to increase CNPF’s public float to 34 percent from 31 percent, which will improve CNPF’s trading liquidity and allow for greater investor participation in the stock.
A wholly owned subsidiary of the Century Pacific Group, CNPF is primarily engaged in the business of buying and selling, processing, canning, packaging, and manufacturing all kinds of food and food products.
The company’s current main business segments are the canned and processed fish segment that produces tuna, sardines, and other fish and seafood-based products; the canned meat segment, which produces corned beef, meat loaf, luncheon meat, and other meat-based products; the dairy and mixes segment, which comprises of evaporated milk, condensed milk, and other dairy products, as well as coffee mixes and flavor mixes; the tuna export segment that produces private label canned, pouched, and frozen tuna products for export; and the coconut segment which produces retail-packaged coconut water, organic virgin coconut oil, desiccated coconuts, coconut flour, and coconut milk.
Some of CNPF’s brands are Century Tuna, 555, Argentina, Angel, Birch Tree and Kaffe de Oro.