SG invests @ Century Tuna

MANILA – Singapore's sovereign wealth fund has invested in Century Canning Corp ahead of the listing of the latter's subsidiary, Century Pacific Food Inc.

In a disclosure to the Philippine Stock Exchange, Century Pacific said Government of Singapore Investment Corp (GIC), through its private equity arm, and CCC entered into an exchangeable loan agreement amounting to P3.4 billion. The debt carries an interest rate of five percent.

CCC will use the proceeds to finance the expansion of existing subsidiaries including but not limited to Century Pacific, possible acquisitions and entry into new businesses, and other general corporate purposes.

The deal runs for a year but may be extended by both parties.

GIC has the option to exchange both the principal and all accrued interest into 245.5 million issued and outstanding shares of Century Pacific at a conversion price equivalent to the Century Tuna maker's initial public offering (IPO) price of P13.75 per share.

Should the exchange option be exercised, GIC will own approximately 11 percent of Century Pacific. It will not dilute the stake of the food manufacturer's public investors because the conversion shares will be transferred from existing shares owned by CCC.

GIC’s partnership with CCC, and its possible entry in Century Pacific, may be considered a vote of confidence in the Philippine tuna canner and the Philippine economy’s strong fundamentals.

GIC is among the world’s largest sovereign wealth funds with assets under management of well over $100 billion. It was set up in 1981 to manage Singapore’s foreign reserves.

“We are pleased to have a world class investor such as GIC as one of our stakeholders. 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 Inc, as well as take advantage of opportunities that arise from our fast growing economy," said CCC president and chief executive officer Christopher Po.

Century Pacific is set to debut in the local bourse on May 6 following the conclusion of its maiden share sale. The tuna canner is expected to raise P3.2 billion in gross proceeds, citing strong demand for its IPO.

Apart from Century Tuna, the company's brands include 555 Sardines, Argentina Corned Beef, Swift, Angel and Birch Tree.

http://www.interaksyon.com/business/85927/singapores-sovereign-wealth-fund-invests-in-century-tuna-maker