San Miguel Purefoods eyes P15B from preferred shares

MANILA, Philippines - The food and beverage unit of diversified conglomerate San Miguel Corp. is planning to raise as much as P15 billion from the offering of preferred shares early next year.

In its application to the Securities and Exchange Commission, San Miguel Pure Foods Co. Inc. (SMPF) said it intends to sell up to 10 million perpetual Series 2 preferred shares with an oversubscription option of up to five million  shares at an initial offer price of P1,000 apiece.

SMPF said the preferred shares would be offered for subscription solely in the Philippines, with its proceeds to be used “to refinance the issuer’s P15 billion outstanding preferred shares which are callable starting on March 3, 2014 or on any dividend payment date thereafter.”

“In case the net proceeds of the offer will not be sufficient to redeem the outstanding preferred shares, the balance will be financed from the company’s funds,” SMPF said.

SMPF used proceeds from the issuance of the outstanding preferred shares issued in 2011 to pay SMC for the brand’s and Vietnam food business acquisitions as well as for general corporate purposes.

BPI Capital Corp., China Banking Corp., RCBC Capitai Corp., SB Capital Investment Corp. and Standard Chartered Bank have been tapped as joint issue managers, joint lead underwriters, and joint bookrunners for the offer.

SMPF is initially looking at an offer period of Feb. 16 to March 5 next year. Listing date of the shares is eyed by March 12.

The offering is still subject to the approval of the corporate regulator and the Philippine Stock Exchange.