News: Pure Foods to raise P50 billion for expansion -
04 Nov 2010
Shareholders of San Miguel Pure Foods Co. Inc. approved yesterday a plan to raise up to P50 billion from a preferred share and/or bond issuance to fund its expansion program and new businesses, including power generation, water and infrastructure.
“We can do a global peso bond offering but everything is under study. It all depends on investors’ appetite. But we’re definitely going to complete the fund-raising effort next year. And the plan is to raise a maximum P50 billion in funds,” Ang said.
The food company’s shareholders approved the reclassification of 40 million common shares into non-voting, cumulative and non-participating preferred shares, with other features to be determined by management. The move is in preparation for the issuance of up to P40 billion worth of preferred shares.
San Miguel owns 99.92 percent of Pure Foods, which owns the Purefoods, Magnolia, Monterey Star, San Mig Coffee and B-Meg brands.
As of end-March this year, Pure Foods had P121.07 billion in cash and near-cash assets as against P209.4 billion in the same period a year ago.
Source: Philippine Star, Business Section by Zinnia dela Pena,11/04/2010