Century Pacific Food, Inc. (CNPF), the Philippines’ largest canned food company, announces a Php2.7 billion equity placement of approximately 143 million common shares at a price of Php18.75 per share.
The deal was done via an overnight book built offering with Century Pacific Group, Inc (CPGI), the parent company of CNPF, as the sole selling shareholder.
The placement price is equivalent to a 2% discount from CNPF’s 60-day volume weighted average price of Php19.13 per share, or a 5% discount from its last close of Php19.68.
The transaction was conducted to broaden CNPF’s shareholder base and is in response to overwhelming demand from global institutional investors for additional shares and improved trading liquidity. The sale represents approximately 6.4% of CNPF’s total issued and outstanding stock, effectively increasing public free float from 10.4% to 16.8%.
Arran Investment Private Ltd, an affiliate of Singapore’s sovereign wealth fund GIC Private Limited (GIC), also recently exercised its option to convert a Php3.4 billion loan made to CPGI into approximately 11% of CNPF.
CNPF shares sold during the placement and to GIC were all previously owned by CPGI and will not cause ownership dilution to any public investor.
After the placement and conversion by GIC, CPGI remains the largest shareholder of CNPF with a significant 72% stake in the listed company.
Evercore Asia acted as exclusive Financial Adviser to the transaction, with Deutsche Bank AG and UBS AG acting as Joint Bookrunners and Placement Agents.