Del Monte plans $500M-$600M private placement in Philippine unit

Del Monte Pacific Ltd. (DMPL) plans to raise $500 million to $600 million through a private placement in its Philippine subsidiary, Del Monte Philippines Inc. (DMPI).

The equity raise aims to reduce DMPL's leverage and address the capital deficit from recent impairments in its US business.

While a share dilution is expected, DMPL will maintain its controlling interest in DMPI.

DMPL views private placement as the fastest way to raise equity, as an initial public offering is not viable currently due to market sentiment.

The company expects the capital raise to help unlock value, enhance overall valuation, and reduce financing costs by replacing higher-interest debt with equity.