DMPL sells more shares in Sundrop Brands

MANILA, Philippines — Singapore and Philippine-listed Del Monte Pacific Ltd. (DMPL) has sold more shares in Sundrop Brands Ltd. as part of efforts to divest its shareholdings in India’s leading food and edible oils industry player.

In a stock exchange filing, DMPL said it completed the sale of an additional 1.45 percent equity interest in Sundrop Brands following the satisfaction of the relevant conditions precedent.

The disposal was undertaken through a share purchase agreement with an independent third-party buyer at 715 Indian rupees per share.

DMPL earlier raised $15 million from the sale of 4.99 percent stake in Sundrop Brands to CAG-Tech (Mauritius) Ltd., an investment holding company that acts as the promoter for Sundrop Brands.

Sundrop Brands, a dual-listed company on the National Stock Exchange and Bombay Stock Exchange in India, is engaged in the business of manufacturing, marketing and selling food and food ingredients to consumers and institutional customers.

It holds popular consumer brands such as ACT II popcorn and Sundrop edible oil.

Funds to be raised from the Sundrop disposal transactions will be used by DMPL to support the company’s main operating subsidiary Del Monte Philippines Inc. (DMPI), which carries out the core businesses of the group and which continues to grow and perform strongly.

By divesting the company’s shareholdings in Sundrop Brands, DMPL is expected to enhance financial flexibility by unlocking value from non-core investments and refocus management and capital on businesses where the group has long-term strategic advantage.

It is also seen strengthening balance sheet and fund working capital and debt obligations of DMPI.

DMPL expects to be profitable in fiscal year 2026, barring unforeseen circumstances, following robust first half results fueled by the strength and momentum of its Philippines and international businesses.

The company recorded a net profit of $22.3 million from May to October 2025, a significant jump from $2.7 million in the same period the previous year, with sales for the period reaching $438.6 million, up by 11 percent year-on-year.