PFC corporate information officer Ferdinand Constantino informed the Philippine Stock Exchange (PSE) yesterday that the company’s board, chaired by Eduardo Cojuangco Jr., approved the spin-off in exchange for share in SMFI.
He said that with the spin-off, PFC will concentrate on its branded line of processed meat products to boost and complement the San Miguel group’s existing product lines.
At the same time, Constantino said the board will also seek stockholders approval for the proposed change in corporate name of PFC to San Miguel Pure Foods Corp. (SMPFC), reflecting the change in ownership from Ayala Corp. to SMC.
Last May, Ayala Corp. sold its entire 93.68-percent stake in PFC to SMC at an equity value of about P7 billion or a price per share of P124. The transaction excludes Pure Foods equity and outstanding advances to Philking Restaurants Development Corp., the franchise holder of Burger King; MPM Noodles Corp.; PT Sinar Pure Foods, the company’s tuna operations; and various real estate properties.
Pure Foods is among the leading branded food companies in the Philippines whose principal line of business are processed meats, poultry and feeds, flour milling and hog raising.
With the contribution of PFC, the market leader in processed meats and flour with 50-percent and 17-percent market shares, respectively, the SMC group becomes the undisputed leader in the country’s fast growing food industry, now commanding two-thirds of the refrigerated and processed meat market and over a third of the poultry and feeds business.
Constantino added that with PFC’s strong performance, the board also declared a cash dividend of P0.8846 per share to existing stockholders to be paid on Jan. 27, 2002.
PFC has 38,132,675 common A shares and 22,573,827 common B shares listed at the PSE. As of yesterday, the A shares stood at P77 each while the B stocks were trading at P124.