Campos-led NutriAsia trims stake in food and beverage firm

REPORT FROM BUSINESSWORLD Campos-led NutriAsia Pacific Ltd. trimmed down its stake in Singapore-listed Del Monte Pacific Ltd. to 79.9% from 84.5% after it sold 50 million shares equivalent to 4.6% of the company primarily to institutional investors. "The sale was undertaken mainly to increase the stock’s liquidity in light of increased interest in the company from investors," the company said in a disclosure to the Singapore Stock Exchange, where it is listed. "With the turnaround in the company’s earnings in 2006 and positive outlook for 2007, Del Monte Pacific has been receiving more interest from investors," it added. Del Monte Pacific owns the Del Monte brand in the Philippines, where it enjoys leading market shares for pineapple juice, juice drinks, processed pineapple, mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup. The firm, which also markets products under its second-tier brand, Today’s, also owns Del Monte Philippines, Inc. Del Monte Pacific earlier said management expected this year’s results to outperform those achieved in 2006 sans any unforeseen circumstances as the full impact of volume-generating initiatives and cost-saving program started last year are realized. In 2006, the company reversed three years of declining profits. Del Monte Pacific doubled its first-quarter earnings to $5.13 million from $3.42 million as the Philippine market strongly performed and offset volume declines in the international markets. Last Thursday, the Singapore Exchange Securities Trading Ltd. asked Del Monte Pacific to explain the "substantial" increase in the price and trading volume of its shares. Del Monte said it was not aware of any information not previously announced concerning the company and its subsidiaries or associated companies, which might affect trading. NutriAsia Pacific acquired its stake in Del Monte Pacific last year, when it bought out the Lorenzo group and conducted a tender offer to minority shareholders. Last April 24, San Miguel Corp., one of the owners of NutriAsia Pacific, sold its 42.2% stake in the company to its partner. NutriAsia Group for $150 million. — R.A.M. Rubio/BusinessWorld