Century Pacific Food Inc. (CNPF) on Monday said the board of its majority shareholder Century Pacific Group Inc. (CPG) has approved the sale of 114 million common shares through an overnight placement.
CNPF, the listed food and beverage unit of the Po family, said the shares were sold at a transaction price of P24.60 per share for a total of P2.8 billion. The shares were at a slight discount based on its closing price on May 19 at P25.95 apiece.
CNPF shares were down to P25 apiece on Monday’s close.
Proceeds from the sale will be settled three trading days after crossing of the shares.
UBS AG, Singapore Branch acted as sole placement agent for the transaction.
“The transaction was oversubscribed, anchored by high-quality long-only international and domestic institutional investors. On the back of strong demand, the transaction was successfully priced at a tight discount of 5.2 percent to last close,” the company said.
The CNPF shares to be sold in the secondary block trade are all owned by CPG and will not dilute the shareholdings of CNPF’s existing public investors as of the date of the placement.
The transaction is expected to increase CNPF’s public float to 34 percent from 31 percent, “which will improve CNPF’s trading liquidity and allow for greater investor participation in the stock,” the company said.
“We are seeing opportunities at the holding company level and will be deploying proceeds across various investments. Post transaction, CPG will continue to hold majority stake in CNPF with 66 percent ownership,” CNPF and CPG Chairman Christopher T. Po said.
“We do not expect any sale of CNPF shares by CPG for the foreseeable future. As a majority shareholder, we continue to support the long-term prospects of CNPF.”
CNPF said its income rose by 5 percent to P1.49 billion in the first quarter from last year’s P1.41 billion.
Consolidated revenues also grew 5 percent to P15.62 billion from the previous year’s P14.8 billion, despite high bases set during the pandemic.
The branded segment, which is composed of marine, meat, milk and other emerging segments, such as pet food, coconut and plant-based alternatives, comprises the majority of CNPF’s topline and is the primary growth driver of the business.
The segment saw peak quarterly sales for the three-month period, with branded sales up by 7 percent year-on-year. This followed a high base last year, a period that saw a lift in sales due to the spread of the Omicron variant and the aftermath of typhoon Odette.