Singapore investor buying 13% stake in Del Monte Philippines

MANILA, Philippines — Del Monte Pacific Ltd. (DMPL) is selling a 13 percent stake in its Philippine business to Singapore-incorporated SEA Diner Holdings Pte Ltd. for $130 million.

DMPL and its wholly owned subsidiaries Central American Resources Inc. (CARI) and Del Monte Philippines Inc. (DMPI) have entered into an agreement with SEA Diner Holdings for the proposed sale of 363.6 million shares of DMPI.

In February last year, DMPL announced its plan to float DMPI in the Philippine stock market, but this plan did not push through due to adverse market conditions. 

“The board has since decided to explore the possibility of partnering with an investor to enhance value in DMPI through a private placement involving the sale of some of DMPI’s shares such as the proposed sale,” DMPL said.

“Proceeds from this transaction will be used to partially prepay certain loan facilities,” it added.

DMPI is a wholly owned subsidiary of the company established under the laws of the Philippines.

 Its business includes the production and sale of food and beverage pro ducts, which include fruit juices and juice drinks, packaged pineapples and mixed fruits, fresh pineapples, as well as various tomato spaghetti sauces and culinary mixes.

DMPI sells these food and beverage products under the Del Monte brand in the Philippines, and exports these products for sale under other brands in other countries.

SEA Diner, meanwhile, is focused on investing in leading companies in the consumer sector in China and the ASEAN region.

Together with its affiliates, it has invested over $1 billion in ASEAN and Chinese consumer businesses to date, including consumer product companies and technology companies.

The food category has been a key focus for the investor and its affiliates, with a particular emphasis on food products that have a large addressable market in China. 

DMPL said the offer price represents a price earnings multiple ratio of about 15.7 times PE based on the earnings of DMPI for the year ending April 30, 2019.