PRIVATE EQUITY INVESTMENTS MACONDRAY & CO. / DEL MONTE PACIFIC LTD The company DMPL, through Del Monte Philippines, Inc. (DMPI), is one of the Philippines’ leading integrated producers of pineapple, mixed fruit, tropical juices, tomato and other food and beverage products.  Del Monte branded products are market leaders in their respective categories in the Philippines, with market shares of their major products ranging from 41.9% to 88.8%.  DMPL is one of the leading suppliers of Pineapple products to the world market.  www.delmontepacific.com

On 29 April 1998, NCP invested on behalf of PDICL, SIP(L) and Fidelity Capital Far East to acquire a 14.7% equity interest in Macondray & Co., Inc. (“MCI”), the Philippine-registered holding company of BVI-registered Del Monte Pacific Ltd. (“DMPL”).  The investment totalled $24.5 million (PhP 975 million) 

DMPL was listed on the Singapore Stock Exchange on August 2, 1999 (Bloomberg: DELM SP).  The offering was priced at a 1999 P/E of 15x and a 2000 P/E of 14x, valuing DMPL at US$727 million post IPO, or at 0.63/0.27x the effective cost of acquisition by PDICL.  PDICL’s effective cost of acquisition, when translated from the acquisition cost of Macondray (holding co of DMPL) shares into post-dilution DMPL shares, is approximately US$0.27 per share. 

The future

PDICL  has opted to swap its shares in Macondray into publicly listed shares of DMPL in Singapore, giving PDICL full liquidity in its investment. The swap was completed in October 2000.

Analysts have called DMPL "one of Asia'a highest value creators" because of its return on capital far exceeding its weighted average cost of capital. DMPL is negotiating to acquire selected food companies in Asia.

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