Joselito Campos revives IPO plans for Del Monte’s US, PH subsidiaries amid mounting debt

Del Monte Pacific Limited led by bilyonaryo Joselito D. Campos is reviving its plans to conduct an initial public offering (IPO) for its two subsidiaries.

In a disclosure, Del Monte said it could generate cash from the IPOs of Del Monte Foods Inc. (DMFI) and Del Monte Philippines Inc. (DMPI) that it announced in 2021.

“The company is in discussions with banks for these proposed IPO’s subject to market conditions. This is expected to generate substantial cash for debt repayment,” said Del Monte in response to advance questions submitted by the Securities Investors Association of Singapore ahead of the firm’s annual general meeting on August 26.

Del Monte deferred its P44 billion IPO two weeks before its scheduled listing date on August 23 citing “volatile market conditions.”

A month later, Del monte announced its plan to launch an IPO of its 93.6-percent owned United States subsidiary within 18 to 24 months.

Del Monte is reviving its IPO plans after its net debt ballooned year on year by 23 percent to $1.546 billion as of 30 April 2022. It revealed that the group’s net debt to equity ratio increased to 312.4 percent from 195.5 percent during the same period.

The food giant has been proactively monitoring its borrowing and interest rates and will continue to pursue refinancing with cheaper loans or debt instruments.

With half its debts on variable rates, Del Monte said a one percent increase in interest rate would jack up its interest expenses by as much as $16 million.

The 70-year old Campos is executive director of Del Monte and chairman and CEO of the Nutriasia group. He is the eldest son of Marcos crony and Unilab founder Jose Yao Campos.

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