CANNED-FOOD manufacturer Century Pacific Food Inc. (CNPF) said it raised P2.6 billion in secondary-equity placement after its parent firm sold some of its holdings.
The company said its parent Century Pacific Group Inc. (CPGI) sold 5 percent of its holdings equivalent to 118 million issued and outstanding shares at a price of P22 per share. The price reflects a 4-percent discount from CNPF’s 10-day volume weighted average price of P22.87 per share and a 1-percent discount from its 30-day volume weighted average price of P22.28.
CPGI unloaded its shares during the weekend via an accelerated overnight equity placement using the facilities of the Philippine Stock Exchange. The obligation will be settled on July 13, it said.
“The transaction was conducted to broaden CNPF’s shareholder base and is in response to demand from global institutional investors for additional shares and improved trading liquidity,” the company said.
The sale shares increased the free float of the company that makes Century Tuna and Argentina corned beef to 21 percent from the previous 16 percent.
The deal was done via an overnight book-built offering, with Century Group as the only selling shareholder.
“CNPF shares sold during the placement were all owned by [Century Group] and will not dilute the shareholdings of CNPF’s existing public investors as of the date of the placement,” it said. After the placement, Century Group will still remain as the largest shareholder of the company with a 69-percent stake.
Century Pacific earlier said it could top its net-income target of 10 percent to 15 percent this year, but mainly as a result of the consolidation of the Po family’s coconut business. “For the first quarter of the year, we grew our top-line by 22 percent [to P6.4 billion, from P5.24 billion], while our bottom-line grew by 45 percent [to P636 million, from P438 million]. So for the balance of the year we expect that to continue,” said Christopher Po, the company’s president.
Po, however, said the higher revenue and net-income growth rate experienced during the first quarter came from the financial consolidation of its newly acquired coconut firm Century Pacific Agricultural Ventures Inc.
“It’s not apple to apple, because of the financial consolidation of our coconut business. So we expect it to make some bump. But we are looking at that trajectory. But our growth target on our net income is to grow by double our [country’s] GDP, so if its 6.9 percent, then we intend to increase our net income by 10 percent to 15 percent,” Po said.
