Pure Foods Completes Listing of 15 Million Preferred Shares
San Miguel Pure Foods Co. (PSE: PF) has completed the listing of 15,000,000 preferred shares (PFP) at the Philippine Stock Exchange (PSE) following a successful public offering in February that raised PhP15 billion in fresh capital.
The preferred shares are priced at PhP1,000 per share, and each share has a fixed dividend rate of 8% per annum payable quarterly on March 3, June 3, September 3, and December 3 of each year, subject to the declaration of dividends by Pure Foods’ Board of Directors.
Earlier, Pure Foods said that the proceeds from the offer will be used to fund the company’s thrust to explore new opportunities in new product categories and improve vertical integration and geographical diversification. It will also give Pure Foods an opportunity to evaluate co-investment opportunities with parent company San Miguel Corp. (PSE: SMC), which has diversified to non-allied industries such as the power business, oil refining and distribution, and infrastructure, among others.
While the preferred shares have no voting rights, they are given preference over common shares. Dividends are paid out to holders of preferred shares prior to any dividend being paid out to common share holders. They also carry priority over common shares on the company’s residual assets upon liquidation.