PureFoods raises P15B
MANILA, Philippines–Leading food manufacturer San Miguel Pure Foods Company Inc. has completed a P15-billion fundraising from the sale of preferred shares.
In a disclosure to the Philippine Stock Exchange on Thursday, the food production arm of conglomerate San Miguel Corp. said market demand for the offering was “strong,” resulting in an oversubscription by four times the base offer. This was attributed by the company to the “attractiveness of its credit profile” and the favorable market conditions.
The newly issued 10 million preferred shares were listed Thursday on the PSE. Proceeds will be used to refinance an older series of preferred shares issued in 2011 and redeemed on March 3.
“The strong support our company received from the investing community reflects their confidence in our strategy and growth prospects. For 2015, we expect to perform even better, with the robust economy and consumers’ growing purchasing power,” said PureFoods president Francisco Alejo III.
BPI Capital Corp., China Banking Corp., RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank were the joint issue managers, joint lead underwriters and joint bookrunners.
This year, Alejo said PureFoods was expecting a double-digit growth in profitability and revenue.
“The outlook is good for this year. If you talk to many of the FMCG (fast-moving consumer good) companies, the first two months has been very good,” he said in a briefing after the listing ceremonies.
Asked whether PureFoods was keen on taking in a new investor, Alejo said the company was “always open but not actively looking.”
In several occasions, he noted that SMC president Ramon S. Ang had said that the conglomerate would be willing to cede up to 49- percent control of the food company to investors.
About 15 percent of the company is held by the public to date.
Alejo also reiterated PureFoods’ plan to expand into new product categories and to new locations.
The company has been looking for acquisition opportunities in Indonesia and Vietnam. In Indonesia, the largest market in Southeast Asia, PureFoods is interested in building a processed meat business.
“In Vietnam, we have temporarily closed the piggery business because of the very low prices. What we’re doing now is we are trying to acquire value-added business as we really intend to be in Vietnam,” Alejo said.
For new product offerings, after its acquisition of La Pacita biscuits, PureFoods remains open to entering new product categories like condiments and confectionery products.
PureFoods is a leading food manufacturer in the Philippines with a highly diversified product portfolio that includes animal feeds, poultry and fresh meats, processed and canned meats, flour, spreads, butter, margarine, coffee and ice cream. It carries well-known brands such as Magnolia, Purefoods, Monterey, Star and Dari Crème.
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