SAN MIGUEL Pure Foods Company, Inc. (SMPFC) said it has secured the Securities and Exchange Commission (SEC)’s approval to amend its name and primary purpose, among others, to reflect the consolidation of the San Miguel group’s traditional businesses.
In a disclosure to the stock exchange on Tuesday, SMPFC said the SEC has approved the change of its corporate name to San Miguel Food and Beverage, Inc. (SMFBI) on March 23.
The SEC approval includes the increase in the company’s capital stock to P12 billion, comprising of 11.6 billion common shares with a par value of P1 each and 40 million preferred shares with a par value of P10 each.
SMPFC’s shareholders had earlier approved the company’s intention to change its corporate name and primary purpose to include its engagement in the alcoholic and non-alcoholic beverage business. This followed San Miguel Corp. (SMC)’s plan to fold San Miguel Brewery, Inc. (SMBI) and Ginebra San Miguel, Inc. (GSM) into SMPFC.
SMC’s plan to merge its traditional businesses under one company was unveiled last November 2017, after announcing a P336.35-billion share swap deal that would eventually form SMFBI.
For the transaction, SMC will be subscribing to 4.242 billion common shares with a par value of P1 each in SMPFC. This will be taken from an increase in SMPFC’s authorized capital stock by P9.54 billion, divided into 9.54 billion common shares with a par value of P1 each.
In return, SMPFC will acquire P336.35 billion worth of SMC’s shares in GSM (equivalent to 216.97 million common shares) and in SMBI (equivalent to 7.859 billion common shares).
The resulting transaction will bring down SMFBI’s public float to 4.3%, way below the current floor of 15% for companies listed on the Philippine Stock Exchange. With this, SMPFC said it will conduct a follow-on offering worth between P100 billion to P150 billion within the second semester of 2018.
The planned share sale had earlier been set for the second quarter of this year, but a source familiar with the transaction noted that it will be delayed to give the market a chance to breathe.
SMPFC booked a consolidated net income of P6.9 billion in 2017, 16% higher year on year on the back of a 5% increase in revenues to P117 billion.
The firm has committed to spend P56 billion to P60 billion in capital expenditures in the next three years, in order to grow its revenue contribution in SMC to 21% by 2020.
Shares in SMPFC gained P8 or 1.36% to close at P598 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia
