Singapore Exchange okays Del Monte Pacific acquisition of Del Monte Foods

Fruit grower and canner Del Monte Pacific Limited is seeking the approval of shareholders in buying the consumer food business of privately-held US firm Del Monte Foods after securing regulatory nod over the transaction. 

 

In a disclosure to the Philippine Stock Exchange Wednesday, Del Monte Pacific said it received on January 22 an "in-principle approval" from the Singapore Exchange Securities Trading Limited (SGX-ST) covering the transaction.

 

The next step is for Del Monte to comply with the SGX-ST listing requirements and by getting  shareholders to approve deal.

 

"With the SGX approval, we will hold an AGM (annual general meeting) in Singapore to ratify the deal with shareholders. Likely this will happen in two to three weeks," chief operating officer Luis F. Alejandro told GMA News Online in a text message Thursday.

 

"After that, we pay and close the deal," he added.

 

Last January 15, Del Monte Pacific entered into a $350 million loan agreement with BDO Unibank Inc. and a $165 million term loan facility with Bank of the Philippine Islands (BPI).

 

It is also in talks with strategic investors for an equity investment of $74.5 million, and try to raise $75.5 million via a share placement, a medium term loan or a combination of both.

 

Alejandro earlier told GMA News Online they expect to complete the transaction by mid-February. 

 

Last October, Del Monte Pacific announced it entered into a definitive agreement to buy Del Monte Foods through a new subsidiary.

 

The acquisition price of $1.675 billion will be financed through a combination of approximately $745 million in equity via the issuance of common and preferred shares, and long-term debt of approximately $930 million, the firm said. – VS, GMA News