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Wednesday, December 10, 2014

Pure Foods sets fundraiser in first quarter

San Miguel Pure Foods Co Inc is raising up to P15 billion from a public sale of shares early next year.

Documents from the Securities and Exchange Commission (SEC) show Pure Foods will sell 10 million preferred shares at a maximum offer price of P1,000 apiece. An additional 5 million shares will be sold in case of strong demand to jack up the gross proceeds to P15 billion.

The preferred shares are cumulative, non-voting, non-participating and non-convertible. Preferred shares represent ownership in a company, but dividends on them are paid ahead of those on common shares.

Pure Foods will use the net proceeds from the share sale to finance the redemption of outstanding preferred shares amounting to P15 billion, which are callable starting March 3, 2014 or on any dividend payment date thereafter.

The dividend rate of the new shares will be set on February 11, 2015 with the offer period scheduled to run from February 16 to March 5. The shares will be listed on the Philippine Stock Exchange on March 12.

BPI Capital Corp, China Banking Corp, RCBC Capital Corp, SB Capital Investment Corp and Standard Chartered Bank were tapped as the joint issue managers, joint lead underwriters and joint bookrunners of the offering.

Last month, Pure Food's board cleared the issuance of up to 25 million preferred shares at P1,000 apiece with the proposed offering covered by a shareholders approval in a meeting last November 2010.

Pure Foods posted flat earnings of P2.7 billion in the nine months through September on higher costs caused by Typhoon Glenda and the Manila port congestion.

The company behind the Magnolia, Monterey, Star, San Mig Coffee, and B-Meg brands, Pure Foods is part of San Miguel Corp, which has interests in beverage, packaging, power generation, oil refining and retailing, mining, telecommunications, property development, and infrastructure.

- Interaksyon

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