Del Monte to sell more shares in Sundrop Brands

January 3, 2026 | 12:00am

MANILA, Philippines —  Singapore and Philippine-listed Del Monte Pacific Ltd. (DMPL) intends to dispose of more shares in Sundrop Brands Ltd., a leading player in India’s food and edible oils industry, after successfully raising $15 million from the sale of 4.99 percent stake in the company.

DMPL India Ltd., an indirect subsidiary of DMPL, sold 1.88 million ordinary shares in Sundrop Brands to CAG-Tech (Mauritius) Ltd., an investment holding company that acts as the promoter for Sundrop Brands.

Sundrop Brands, a dual-listed company on the National Stock Exchange and Bombay Stock Exchange in India, is engaged in the business of manufacturing, marketing and selling food and food ingredients to consumers and institutional customers.

It holds popular consumer brands such as ACT II popcorn and Sundrop edible oil.

On top of the completion of the transaction with CAG, DMPL said that its subsidiary has also entered into a separate share purchase agreement with an independent third party buyer for the sale of additional 547,946 ordinary shares in Sundrop Brands, representing 1.45 percent equity interest.

DMPL said the terms of the additional share purchase agreement were agreed on an arm’s length basis and are substantially similar to those of the first tranche disposal. 

The completion of the transaction is subject to the satisfaction of similar customary conditions precedent.

DMPL plans to use the funds to be raised from the Sundrop disposal transactions to support the company’s main operating subsidiary Del Monte Philippines Inc. (DMPI), which carries out the core businesses of the group and which continues to grow and perform strongly.

DMPL said that by divesting the company’s shareholdings in Sundrop Brands, it is expected to enhance financial flexibility by unlocking value from non-core investments and refocus management and capital on businesses where the group has long-term strategic advantage.

It is also seen strengthening the balance sheet and fund the working capital and debt obligations of DMPI.

Barring unforeseen circumstances, DMPL expects to be profitable in fiscal year 2026 following robust first half results, fueled by the strength and momentum of its Philippines and international businesses.

The company reported a net profit of $22.3 million from May to October 2025, a significant jump from $2.7 million in the same period the previous year, with sales for the period reaching $438.6 million, up by 11 percent year-on-year.

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