Del Monte Pacific in talks with banks for IPO of US units, PH

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Consumer giant Del Monte Pacific Ltd. (DMPL), led by the Campos Group, is in talks with banks for the IPO of its subsidiaries in the Philippines and the United States.

DMPL had long planned the initial public offering (IPO) of its local unit, Del Monte Philippines Inc. (DMPI). Registration statements had been filed, but due to market volatility, the offerings were dropped twice: in 2018 and 2021.

He also said the IPO of his US unit, Del Monte Foods Inc. (DMFI), was in the cards.

In a regulatory filing released Wednesday, DMPL said it could “generate cash from the planned IPOs of its subsidiaries, in particular DMFI and DMPI.”

“The company is in discussions with banks for these IPO proposals subject to market conditions. This should generate substantial cash for debt repayment,” he added.

At the end of April, DMPL’s equity stood at $494 million. Its net debt now equals 4.4 times its cash, an improvement from the multiple of 14.1 in 2018.

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