Del Monte Philippines to sell 13% stake to Singapore’s SEA Diner for $130m

Photo: Bloomberg

Del Monte Philippines Inc, a wholly-owned subsidiary of global branded food and beverage firm Del Monte Pacific Limited (DMPL), is selling 13 per cent of its existing ordinary shares to Singapore-incorporated SEA Diner Holdings for $130 million.

The proposed share sale comes more than a year after Del Monte Philippines shelved its planned initial public offering (IPO), which targeted to raise net maximum proceeds of about $324 million, due to “adverse market conditions”.

In a disclosure, Singapore-listed DMPL said it has entered into an agreement with SEA Diner for the proposed sale of about 363.7 million existing ordinary shares of its Philippines subsidiary, subject to certain conditions.

The net cash proceeds of approximately S$155.5 million ($115 million) will be used to pay certain outstanding loans of DMPL.

SEA Diner is focused on investing in companies in the consumer sector in China and the Southeast Asia region. Together with its affiliates, the company has invested over $1 billion in ASEAN and Chinese consumer businesses to date, including consumer product and technology companies.

Del Monte Philippines, on the other hand, is engaged in the production and sale of food and beverage products – such as fruit juices and juice drinks, packaged pineapple and mixed fruit, spaghetti sauces, and culinary mixes – in the Philippines under the Del Monte brand and exports these products under the S&W brand.

It also operates one of the world’s largest fully-integrated pineapple operations and has been growing and processing pineapple for over 90 years.

DMPL said having SEA Diner as an investor will help Del Monte Philippines grow its fresh fruit sales in China, where SEA Diner has close relationships with online and offline food retailers, among other benefits.

The funds that will be raised in the proposed share sale will also allow DMPL to free up certain credit lines to pursue other opportunities after the proposed public offering of its Philippines subsidiary was deferred.

In February 2018, DMPL had announced its intention to public offer and list some of the ordinary shares of Del Monte Philippines on the Philippine Stock Exchange. The plan was to offer about 559.5 million shares to raise up to P16.7 billion, or about $324 million.

DMPL, however, announced in June 2018 that it had decided to defer the proposed public offering due to “adverse market conditions” and would only resume when market conditions improve.

“As market conditions have yet to improve, no further action has been taken by the company (DMPL) in relation to the proposed public offering,” DMPL said in its disclosure.

The company’s board had since decided to explore the possibility of partnering with an investor to enhance value in Del Monte Philippines through a private placement, the disclosure added.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.