Del Monte Pacific Ltd. plans to issue another $160 million worth of dollar-denominated preferred shares before the end of 2017, the underwriter handling the transaction said Friday.
The sale will be the second and final tranche of dollar denominated preferred shares under the company’s $360 million dollar denominated securities shelf registration approved by the Securities and Exchange Commission in 2016.
BDO Capital and Investments Corp. president Eduardo Francisco said at the sidelines of the Financial Executive of the Philippines annual conference said the the fruit canner and grower was now finalizing the planned fund raising activity.
“We hope to do it before the end of the year,” Francisco said.
Del Monte in April issued and listed $200 million worth dollar-denominated preferred shares to become the first company to register the securities with the Philippine Stock Exchange.
The company used the proceeds from the April fund raising activity to refinance debts.
Del Monte posted a net income of $0.7 million in the first quarter of its fiscal year, a turnaround from a $7-million net loss year-on-year, as a result of the robust performance of the Asian business.
The company last month said it was selling its US-based Sager Creek vegetable business to McCall Farms Inc, a family-owned business that manufactures brands such as Bruce’s Yams, Margaret Holmes and Glory Foods, for $55 million.
The sale will allow the company to focus on core business and explore new products.
The Sager Creek business produces specialty vegetables for the foodservice and retail markets, and manufactures several brands, including Veg-all®, Freshlike®, Popeye®, Princella®, Trappey’s® and Allens®.
Del Monte is a global branded food and beverage company that sells premium quality healthy products. The group has exclusive rights to use the Del Monte trademarks for packaged products in the United States, South America, the Philippines, Indian subcontinent and Myanmar.
The company is 67 percent-owned by NutriAsia Pacific Ltd. and Bluebell Group Holdings Ltd., which are beneficially-owned by businessman Joselito Campos.
The NutriAsia Group is the market leader in the liquid condiments, specialty sauces and cooking oil market in the Philippines.