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Manila Bulletin devider Business devider The Stock Market devider Del Monte exits Sundrop brands with ₱870-million share sale

Del Monte exits Sundrop brands with ₱870-million share sale

Published Jun 5, 2026 02:22 pm
Del Monte Pacific Ltd., the food and beverage conglomerate led by the Campos family, raised ₱870 million ($14.13 million) by offloading its remaining stake in India’s Sundrop Brands Ltd., moving to shore up liquidity and pay down debt at its main Philippine operating unit.
In a disclosure to the Philippine Stock Exchange, the firm said the transaction was executed through subsidiary DMPL India Ltd., which sold 1.88 million shares—equivalent to a 4.99 percent stake—to CAG-Tech (Mauritius) Ltd. via an off-market block transfer.
The sale was pursuant to the Options Agreement dated Dec. 15, 2025, between DMPL India and CAG. The agreement gave CAG a call option to acquire an additional 4.99 percent of Sundrop on or before April 30, 2026.
Since CAG did not exercise its call option, it was DMPL India that exercised its put option, requiring CAG to purchase the Sundrop Option Shares. Thus, the Tranche 2 Disposal took place on June 4, 2026.
CAG acquired the second tranche shares at the same price as the first 4.99 percent of Sundrop that it bought from DMPL last December, as provided in the Options Agreement.
The net proceeds from the Tranche 2 Disposal (after deducting estimated transaction expenses) will be used to support the working capital and debt obligations of Del Monte Philippines, Inc., the Group’s main operating subsidiary.
Last January, DMPL said DMPL India had found a second buyer for the piecemeal sale of its stake in Sundrop after the completion of the first tranche sale worth $14.8 million.
DMPL said its subsidiary has entered into a separate share purchase agreement on Dec. 24, 2025 with an independent third-party buyer (the Second Buyer) for the sale of an additional 547,946 ordinary shares in Sundrop Brands, representing approximately 1.45 percent equity interest.
“The terms of this additional share purchase agreement were agreed on an arm’s length basis and are substantially similar to those of the Tranche 1 Disposal,” it noted.
The firm said last year that “The Proposed Sundrop Disposal Transactions allow the Company to optimize its capital deployment strategy by realizing the latent value within this non-core public equity holding.”
Thus, it will immediately improve DMPL's balance sheet liquidity and enhance financial flexibility for deployment towards strategic, value-accretive initiatives within the Company’s other core business segments.
DMPL also noted that, “the Proposed Sundrop Disposal Transactions are expected to mitigate risk and prevent further capital erosion by divesting a non-core public equity holding that exhibits declining value, thereby preserving capital for immediate and value-accretive reallocation into core business segments.” (James A. Loyola)

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Del Monte Pacific Limited Sundrop Brands Limited Del Monte Philippines Inc.
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