MANILA, Philippines – Listed food and beverage firm RFM Corp. has removed current stockholders’ rights for a first crack during the company’s share sale.
The amendment in the articles of incorporation is in line with RFM’s recent private share sale that raised more than P1.6 billion in new capital.
In a disclosure, the company behind Selecta ice cream and White King Fiesta said it secured the approval of the Securities and Exchange Commission to amend its articles of incorporation.
“The stockholders shall have no pre-emptive rights to all issuances or dispositions of any class of shares of the corporation, unless otherwise prescribed by the Board of Directors,” RFM said.
Early this month, the food and beverage company sold 340 million shares at P4.77 apiece, allowing the firm to generate P1.62 billion from the private placement.
The company hired Maybank ATR Kim Eng Securities Inc. to sell shares owned by Horizons Realty Inc., BJS Development Corp., Triple Eight Holdings Inc. and RPMC Resources Inc.
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Under the firm’s fund-raising scheme, majority shareholders will sell 340 million common shares to new investors. The selling stockholders will then subscribe to 340 million new shares to be issued by RFM.
RFM earlier said it received the written assent of most stockholders, allowing the management to remove the pre-emptive rights for the issuance or disposition of any class of shares.
Proceeds from the top-up share sale prepares the listed firm for potential acquisition and expansion opportunities in the food business, RFM executive vice-president and chief operating officer Felicisimo M. Nacino Jr. said.
The food and beverage maker tripled its capital spending to P1 billion this year to expand its macaroni, ice cream and bread production.
In the first half, RFM’s earnings jumped 28 percent to P387 million from P302 million in the same period last year on the back of strong consumer spending and lower input costs.
RFM is a market leader in several brands. For instance, Selecta, which is a joint venture with Anglo-Dutch consumer goods giant Unilever, already corners 74 percent of the local ice cream market.
RFM’s White King Fiesta division, which includes its fast-growing pasta business, holds 31.4 percent of the market.
The food and beverage firm hopes to fasttrack its growth through possible acquisitions and strategic partnerships.
RFM expects to jack up its profits by 15-20 percent this year from P682 million last year.