MANILA, Philippines–The Campos-family led food conglomerate Del Monte Pacific Ltd. (DMPL) has deferred a plan to raise up to $360 million from an overseas offering of US dollar-denominated preferred shares, citing “weak global market conditions.”
DMPL wanted to use funds from this offering to refinance a bridge loan with BDO Unibank Inc., which partly funded the former’s buyout of the consumer food business of North American peer Del Monte Foods in 2014.
“The company is making arrangements for the extension of such bridge loan,” said DMPL company secretary Tan San-Ju. “The company will continue to monitor the financial markets and undertake the offering under better market conditions.”
DBS Bank Ltd. was earlier mandated as sole global coordinator for the offering.
DMPL intended to list the “preference” shares on the Singapore Exchange Securities Trading Ltd. (SGX- ST).
Preferred or preference shares are shares of stocks whose shareholders are given preference when it comes to dividend payment over common stockholders. Fixed dividends are usually paid but its holders usually do not have voting rights.
Meanwhile, DMPL recently obtained approval from the Philippine Stock Exchange to raise as much as $180 million from a stock rights offering to be dually launched in the Philippines and Singapore.
In 2014, DMPL completed the $1.675-billion buyout of the consumer food business of Del Monte Foods, gaining a foothold into the world’s biggest market. The transaction consolidated DMPL’s portfolio with the US mother brand and the US consumer food business was renamed Del Monte Foods Inc. (DMFI).
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