Del Monte Pacific Ltd. (DMPL) said it will no longer pursue a proposed US$45 million contribution to its US unit’s settlement obligations, reaffirming a strategic pivot toward its more profitable operations in the Philippines and international markets.
The Singapore- and Manila-listed food group said the decision followed a comprehensive evaluation of macroeconomic conditions in the U.S., DMFHL’s historical performance, and the DMPL Group’s liquidity and shareholder considerations.
A U.S. litigation involving its unit Del Monte Foods Holdings Ltd. (DMFHL) was recently dismissed with finality.
As part of the settlement terms, a 25% equity stake in DMFHL will now be used to partially offset the Settlement Loan, with lender-appointed directors taking majority control of the U.S. subsidiary’s board.
DMPL will appoint a financial adviser to assess the fair value of its investment in DMFHL and determine any impairment impact.
Meanwhile, Del Monte Philippines Inc. (DMPI) remains the group’s top-performing unit, delivering a 13% increase in sales to US$582 million and an 80% surge in net income to US$61 million for the nine months ending January 2025.
Growth was driven by strong domestic and export demand for fresh pineapples, beverages, and packaged goods.
DMPL said it is in early talks with a potential investor in DMFHL, with lender support. The company pledged to disclose further updates in line with regulatory requirements.
Business News Asia