Singapore Exchange OKs Del Monte Pacific plan to buy Del Monte-US
MANILA, Philippines — Food conglomerate Del Monte Pacific Ltd. has obtained approval in-principle from Singapore Exchange Ltd. to pursue the acquisition of the consumer food business of privately held American corporation Del Monte Foods.
In a disclosure to the Philippine Stock Exchange on Thursday, DMPL said the approval-in-principle granted by the SGX-ST was subject to the following:
- compliance with the SGX-ST’s listing requirements;
- shareholders’ approval being obtained for the proposed acquisition; and
- submission of documentary requirements.
DMPL, which is listed in both Philippine and Singapore bourses, earlier struck a deal to buy out Del Monte’s consumer food business for $1.675 billion, a deal that would allow the Filipino-owned food company to break into the US market and reunite with the American mother brand.
The local company was asked to submit to SGX written confirmation from the financial adviser that the signed moratorium agreements with the relevant parties were in accordance with listing requirements and a written undertaking from each of the company’s directors in the form prescribed by the SGX-ST.
DMPL noted that that the approval-in-principle granted by the SGX-ST should not be taken as an indication of the merits of the acquisition, the company or its subsidiaries.
The circular containing information on the proposed acquisition and the notice of general meeting to seek shareholders’ approval would be dispatched, the company said.
This acquisition includes Del Monte Foods’ leading U.S. canned fruit, vegetable and broth business under iconic American brands Del Monte, Contadina, S&W and College Inn. The deal, which is done through a subsidiary, adds net sales to Del Monte Pacific of more than $1.8 billion and adjusted cash flow based on earnings before interest taxes, depreciation and amortization of about $180 million.
With a 23,000-hectare pineapple plantation in the Philippines, 700,000-ton processing capacity and a port beside the cannery, Del Monte Pacific through subsidiary Del Monte Philippines operates the world’s largest fully integrated pineapple operation. It has 87 years of pineapple growing and processing heritage.
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