GIC invests $76m in Philippines canned foods firm

The investment is structured as a one-year exchangeable loan, extendable by both parties, with an annual coupon of 5%. GIC also has the option to exchange both the principal and accrued interest into 245.5 million shares in CNPF at the IPO price, which would give it an 11% equity interest in the business.

CNPF is selling approximately 229.7 million shares at PHP13.75 apiece, with the total proceeds expected to reach nearly PHP3.2 billion. The shares are scheduled to begin trading on May 6.

CCC was incorporated in 1978 to handle canned and processed fish distribution, mainly tuna, sardines and milkfish. Other subsidiaries are responsible for tuna exports, canned meat and dairy products. Ahead of the IPO the group was restructured with all business operations folded into CNPF and CCC switching to become the primary holding company for the interests of the founding Po family.

CNPF reported a net income of PHP744 million for the year ended December 2013 on the back of revenues totaling PHP19 billion. Canned and processed fish is the largest revenue generator, accounting for 36.9% of sales, with canned meat on 24.4% and tuna exports on 30.5%.

GIC's investment will be used to support the growth and expansion of existing subsidiaries of CNPF as well as potential acquisitions and entry into new business areas.

"We are pleased to have a world class investor such as GIC as one of our stakeholders," said Christopher Po, CEO and president of CCC and CNPF, in a statement.

"We look forward to a long term, value creating partnership with them. The financing provided by this transaction will allow us to support our various businesses, including Century Pacific Food, as well as take advantage of opportunities that arise from our fast growing economy."

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• Topics
• Expansion
• Consumer
• Southeast Asia
• GIC Private
• Growth capital
• IPO
• Southeast Asia
• Philippines
• Consumer