Del Monte to issue shares

MANILA, Philippines–Del Monte Pacific Ltd. (DMPL) is launching a follow-on offering this week, as part of a series of fund-raising activities to cut debt stock arising from its big US acquisition.

DMPL is offering 5.5 million primary shares for up to P22.84 a share through a follow-on offering, raising P125.62 million.

The offering will run from Oct. 16 to 22, based on a circular posted on the Philippine Stock Exchange.

As earlier disclosed, DMPL plans to reduce its debt by $520 million through a series of public stock, perpetual preferred shares and stock rights offerings.

The market capitalization of DMPL after this offering will amount to up to P29.76 billion.

DMPL is raising funds to cut additional debt incurred following its acquisition of the consumer food business of privately held Del Monte Foods (DMFI) for $1.675 billion.

The deal allowed the local firm to break into the US market and reunite with its US mother brand.–Doris C. Dumlao