San Miguel Pure Foods Co. Inc. plans to conduct a share sale by the second quarter of the year to meet the 15-percent minimum public float requirement after acquiring the beer and drinks venture of parent firm San Miguel Corp.
San Miguel chief finance officer Ferdinand Constantino said in an interview at the sidelines of the special stockholders’ meeting Pure Foods was now in talks with potential advisers and underwriters to conduct the share sale.
“We will try do it by second quarter (a) follow on offering. Minimum (public float) requirement is… 15 percent,” Constantino said.
Constantino declined to give an estimate on how much the company would raise from the share sale.
San Miguel will have a 95.5-percent stake in Pure Foods after the consolidation.
Shareholders of Pure Foods during the meeting approved the company’s acquisition of San Miguel’s 7.86 billion shares in San Miguel Brewery Inc. and 216.97 million shares in Ginebra San Miguel Inc. with a combined value of P336.35 billion as part of a move to consolidate the food and beverage businesses under one subsidiary.
Pure Foods in exchange will issue 4.24 billion shares to Ssn Miguel.
Shareholders also approved an increase in Pure Foods’ authorized capital stock to P12 billion, a change in the corporate name to San Miguel Food and Beverage Inc. and the expansion of its primary purpose to include alcoholic and non-alcoholic beverage business.
Alejo said Pure Foods SMPFC will conduct a tender offer to the other shareholders of GSMI if required by law. About 20 percent of GSMI’s outstanding capital stock are held by the public.
GSMI will also remain listed with the Philippine Stock Exchange.
Constantino said the move to consolidate all food and beverage businesses under Pure Foods would make the company more attractive to investors.
“Investors are clamoring for a pure play food and beverage company because it will be a food proxy for the Philippine economy,” Constantino said.
Share price of Pure Foods on Thursday fell 0.7 percent to P537.
