San Miguel Pure Foods' share offer priced at P240

By Erik dela Cruz, Reuters

Posted at Nov 20 2012 03:52 PM | Updated as of Nov 21 2012 06:09 AM

MANILA, Philippines - San Miguel Corp., the Philippines' most diversified conglomerate, said on Tuesday it has priced a secondary share offer of up to 25 million shares in its food unit at the low end of its indicative range and at a steep discount to market price.

San Miguel is selling a 15 percent stake in San Miguel Pure Foods Co Inc. at P240, just slightly a third of the current market price of P680, in an offer that would raise P6 billion ($146 million).

San Miguel had announced a price range of P240 to P300 per Pure Foods share ahead of an international roadshow held last week.

The offer, which includes 2.5 million shares to cover over-allotments, will be crossed at the stock exchange on Nov. 21, San Miguel said in a filing.

The share sale will lift Pure Foods's public float to up to 15 percent from the current 0.08 percent, allowing the firm to comply with a yearend deadline set by the Philippine Stock Exchange for listed companies to have a 10 percent minimum public ownership.