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Del Monte Pacific to list unit on Philippines exchange

DEL Monte Pacific Limited (DMPL) is planning to list its wholly-owned Philippines subsidiary on the Philippines Stock Exchange to repay certain loan facilities and for general corporate purposes.

The company, however, will undertake to continue to own at least 67 per cent of Del Monte Philippines Inc (DMPI) for five years after the secondary offer.

DMPI produces and sells food and beverage products in the Philippines under the Del Monte brand, and exports these products under the S&W brand and private label. Two thirds of its revenue come from the Philippines, while one-third comes from exports.

The firm will offer about 559.5 million shares, representing 20 per cent of DMPI's current number of ordinary shares. The estimated maximum offering price will be PhP29.88 (S$0.763) per DMPI share.

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DMPL said the proceeds will allow it prepay some loans, allowing the group to deleverage and strengthen its balance sheet. Such prepayment is allowed under the current loan facility agreement without any fee or penalty.

The proposed public offering will also result in a one-time gain of about US$304 million for the group, assuming that DMPI raises net maximum proceeds of US$314 million.

As at Oct 31 last year, the net book value of 20 per cent of DMPI is S$93.9 million.

DMPL has applied for the proposed listing, but said it is in its preliminary stages and is dependent on the results of preparatory work to be undertaken, requisite regulatory approvals and the then-prevailing market conditions.

"Accordingly, there is no assurance that the proposed public offering will materialise in due course," it said.

BDO Capital & Investment Corporation has been appointed as the issue manager, sole global coordinator and sole bookrunner for the offering.

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