Del Monte Pacific offers 5.5 million new shares

Fruit grower and canner Del Monte Pacific Limited is offering up to P93.5 million worth of new shares to settle its short-term existing indebtedness.

In a disclosure to the Philippine Stock Exchange (PSE), the company said is offering 5.5 million new ordinary shares priced at P17 apiece for "partial repayment of short-term existing indebtedness."

The company expects to raise P79.95 million from the offer, after deduction of fees and expenses.

Del Monte Pacific will offer 1.1 million shares or 20 percent of the total to PSE trading participants, 550,000 or 10 percent for local small investors (LSIs), and about 70 percent to the general public.

BPI Capital Corporation, the underwriter for the public offer, will purchase any offer shares not taken up by PSE trading participants, LSIs and the the general public, Del Monte Pacific said.

The company has received on Tuesday the pre-approval of the Securities and Exchange Commission for the registration of 5.5 million new shares priced at P22.84 apiece. Proceeds will be used to pay for short-term debt related to the Del Monte US acquisition. — Kathryn Mae P. Tubadeza/BM, GMA News