Manila, Philippines – Del Monte Pacific has announced that it will restructure its investment in Del Monte India by exchanging its shares with 13% direct shareholding in Agro Tech Foods Limited (ATFL), an Indian food company. In turn, ATFL will acquire the 59% equity stake of the Bharti Group in Del Monte India.
In a recent disclosure by Del Monte Pacific, it stated that it will continue licensing the Del Monte trademark to Del Monte India on a perpetual and exclusive basis to protect the value of the brand by safeguarding Del Monte quality standards and derive royalties therefrom.
“The Group’s direct investment in ATFL means that it would be invested in a broader business that includes profitable product categories which have yielded shareholder returns for several years. Further, a direct equity stake in a company whose ordinary shares are listed in stock exchanges generally means more liquidity for its shareholders and enhanced corporate governance practices and benefits,” Del Monte Pacific said in their disclosure.
Given how ATFL has a bigger consumer packaged goods platform with a wider and deeper distribution network in India, Del Monte Pacific stated that ATFL is well-positioned to grow the Del Monte brand in India.
“India has been an exciting and flourishing market, and we are proud of the brand’s journey and impact on the Indian food industry. Under Sundrop Brands’ platform, we believe the Del Monte brand will reach new heights in India. This transaction supports the Group’s strategic focus on its core markets and partnerships that drive growth,” Rolando Gapud, executive chairman at Del Monte Pacific, stated.
ATFL has just rebranded itself as Sundrop Brands, and holds popular consumer brands such as ACT II popcorn and Sundrop edible oil.
