January 28, 2011
Pure Foods shares reclassification approved
Philippine conglomerate San Miguel Pure Foods Co. Inc. (SMPF) has obtained the Securities and Exchange Commission's nod to reclassify 40 million common shares into non-voting and cumulative preferred shares.
SMPF, the food manufacturing unit of food and beverage giant San Miguel Corporation, is planning to raise PHP15 billion (US$340.22 million) from a preferred share offering targeted this quarter.
Based on its registration statement filed with the Securities and Exchange Commission, SMPF plans to sell the preferred shares at PHP1,000 (US$22.70) a piece.
BDO Capital and Investment Corporation, The Hongkong and Shanghai Banking Corp. Ltd., SB Capital Investments Corp. and Standard Chartered Bank are joint issue managers and lead underwriters for the share sale.
Proceeds from the issue will be used to partly fund potential investment opportunities as well as geographical expansion.
The preferred share issue is part of a programme to raise a total of PHP50 billion (US$1.13 billion) to fund its expansion and diversification into new businesses including power generation, water and infrastructure.
Following failed negotiations between San Miguel and two prospective buyers -- the consortium of the Campos family and private tuna canner Century Pacific Group, and Universal Robina Corp. of the Gokongwei family, SMPF's planned preferred share issuance was done.
San Miguel rejected their offers since they wanted to acquire 100 percent of SMPF while the conglomerate was only willing to divest up to a 49-percent stake.
San Miguel owns 99.92 percent of SMPF, which owns the Purefoods, Magnolia, Monterey Star, San Mig Coffee and B-Meg brands.
