Del Monte Pacific Limited (DMPL) sold a 4.99-percent equity interest in Sundrop Brands Limited for $15 million and plans to divest further shares as part of a broader asset disposal program to support its operations.
The Singapore and Manila-listed food producer said its indirect subsidiary DMPL India Holdco and CAG-Tech (Mauritius) Limited completed the sale of 1,881,073 ordinary shares.
DMPL said it also entered into an additional agreement with an independent third party to sell a further 547,946 shares, representing a 1.45-percent stake.
The disposals follow a July bankruptcy filing by Del Monte Foods, the company’s US subsidiary. DMPL said the terms of the additional share sale were agreed on an arm’s length basis and are substantially similar to the initial tranche.
Beyond asset sales, the group is looking to raise between $500 million and $600 million through a private placement. The capital injection is intended to reduce the company’s debt load and address a capital deficit.
DMPL operates through various subsidiaries across international markets and focuses on branded packaged foods. Its portfolio includes shelf-stable products distributed throughout Asia and the United States.
While the transactions were disclosed in US dollars, the company continues to manage its regional obligations in local currencies, including the Philippine peso, where it maintains a primary listing.
Recent market valuations for similar tranches have fluctuated near P850 million based on current exchange rates.
Completion of the latest share sale remains subject to customary closing conditions.
