Del Monte completes 1.45% Sundrop stake sale – BusinessWorld Online
DEL MONTE PACIFIC LTD. (DMPL) said it has completed the sale of a 1.45% equity stake in India’s Sundrop Brands Ltd., covering 547.95 million ordinary shares priced at 715 Indian rupees each, to an independent third-party buyer.
In a disclosure on Tuesday, the company said the share purchase agreement closed on Jan. 9, after meeting required conditions.
The deal follows DMPL India Holdco, its indirect subsidiary, completing the first tranche of the Sundrop disposal through a share purchase agreement with CAG-Tech (Mauritius) Ltd., selling 1.88 million ordinary shares or a 4.99% stake for about $15 million.
“Sundrop Brands, a leading player in India’s food and edible oils industry, owns popular brands like ACT II popcorn and Sundrop edible oil,” DMPL said.
The company said the transactions are part of its restructuring efforts to streamline its businesses.
Funds raised from the Sundrop sales will support its main operating subsidiary, Del Monte Philippines, Inc. (DMPI), which handles the Group’s core businesses.
The transactions aim to unlock value from non-core investments, strengthen DMPI’s balance sheet to fund working capital and debt, and refocus management and capital on DMPL’s core strategic businesses.
Del Monte shares remained unchanged at P4.55 apiece on Tuesday. — Alexandria Grace C. Magno