PSE approves Pure Foods' preferred share offer

ABS-CBN News

Posted at Jan 27 2011 06:49 PM | Updated as of Jan 28 2011 02:50 AM

MANILA, Philippines - The Philippine Stock Exchange has approved the application of San Miguel Pure Foods Co. Inc. to issue preferred shares worth P15 billion.

In a filing with the regulator, Pure Foods said it will issue 15 million preferred shares at a maximum offer price of P1,000 per share.

The dividend rate on the shares will be determined on February 8, while the offer period will run from February 14 to 25. Listing has been set on March 4.

Proceeds from the issuance will finance acquisition of food-related brands and intellectual property rights from parent San Miguel Corp., among others.

San Miguel has been aggressively moving away from its core food and beverage businesses to heavy industries such as infrastructure, power and telecommunications.

It earlier wanted to sell a portion of its stake in Pure Foods, but the plan reportedly hit a snag due to disagreements with interested buyers who wanted 100% ownership of the food firm.

San Miguel holds 99.92% of Pure Foods, whose brands include Magnolia, Monterey, San Mig Coffee and B-Meg.