Pure Foods mulls another fundraising this year

MANILA, Philippines - San Miguel Pure Foods Co. Inc. may return to the fund market this year following the sale of preferred shares earlier this month that allowed the company to raise P15 billion.

Pure Foods president Francisco Alejo III said the company is considering another fundraising before the year ends, but has no definite details for it yet.

“We have plans but depending on market condition,” Alejo said.

“At this time we continue to study the need for the fund to be raised, whether it’s for acquisition or other operating expenses,” he added.

The food arm of diversified conglomerate San Miguel Corp. raised P15 billion from its issuance of 15 million Series 2 preferred shares earlier this month.

The shares had a base issue size of 10 million and oversubscription of five million.

Proceeds of the offering would be used to refinance preferred shares which the company issued in 2011.

For this year, the company has earmarked about P8 to P10 billion for its capital expenditures, a portion of which is intended to be used for acquisitions.

Pure Foods is hoping to seal its purchase of a Vietnamese firm engaged in the meat processing business within the year to beef up its operations abroad.

The company’s net income dipped slightly to P3.8 billion last year from P4.1 billion in 2013 despite higher revenues.

Revenues for full year 2014, however, breached the P100 billion mark for the first time at P103 billion due to higher volumes and better selling prices across its businesses.