Canned fruit maker Del Monte Pacific Ltd. (DMPL) is planning to raise up to $600 million from the issuance of new shares in its Philippine business to cut its liabilities.
In a regulatory filing on Tuesday, the Campos-led company said it was considering an equity raise through private placement at Del Monte Philippines Inc.
This aims to ‘reduce the group’s leverage and address the capital deficit resulting from the recent impairments relating to the US business,’ DMPL explained in the published minutes of its annual general meeting.
It also noted that share dilution would be expected as part of the planned equity raise, but DMPL would remain the majority shareholder in Del Monte Philippines