San Miguel food unit lists 15-M preferred shares

San Miguel Pure Foods Co. Inc. completed on Thursday the listing of 15 million preferred shares at the Philippine Stock Exchange after a successful public offering in February. Pure Foods — the maker of Pure Foods hotdog, ham, and sausages — said in a statement that the preferred shares are priced at P1,000 apiece. The public offering last month raised P15 billion in fresh capital. Each preferred share has a fixed dividend rate of 8 percent a year, payable quarterly on March 3, June 3, Sept. 3, and Dec. 3, according to the statement. "We are pleased with the results of the offering and we see it as a vote of confidence on [the company] and our growth strategy," Pure Foods president Francisco Alejo III said. Pure Foods had earlier said that the proceeds from the offer will be used to fund its exploration activities for new product categories and to improve its vertical integration and geographical diversification. Because preferred shares have no voting rights, they are given preference over common shares. Dividends are paid out to holders of preferred shares prior to any dividend paid out to common shareholders. Preferred shares also carry priority over common shares on the company's residual assets upon liquidation. Pure Foods, one of the largest food firms in the country, carries brands such as Magnolia, Monterey, and B-Meg. — JE, GMA News