Prospectus Summary: San Miguel Pure Foods Company Preferred Shares (PFP)

copied from jcmiras.net

Here’s another good source of dividend income for Filipino, and maybe also foreign, investors.  It’s the preferred shares that is being offered by San Miguel Pure Foods Company, the food business subsidiary of the San Miguel Corporation. The shares is scheduled to be listed and started to be traded in the Philippines Stocks and Exchange (PSE) on March 3, 2011. Below is the summary of the prospectus;

• Offered price: Php1000 per share with par value of Php10.00 per share
• Issue Date: March 3, 2011
• Dividend yield of 8.0% (based on the 5-year PDST-F rate of 5.7788% p.a. as of February 8, 2011 plus a spread of 2.2212%.) Dividends will be paid quarterly on March 3, June 3, September 3 and December 3.  The declaration and payment of dividends on the Preferred Shares will be subject to the sole and absolute discretion of the Issuer’s Board of Directors (the “Board”) to the extent permitted by law, however, dividends will be cumulative if the Issuer’s Board does not declared dividend for the dividend period.
• Shares are non-voting, non-participating, and non-convertible.
• Optional Redemption at 5 years after the issue date at offer price.  If not redeemed after 5 years, the dividend rate will be adjusted to whichever is higher of current dividend rate of 8.0% or  150bps on top of the 10yr PDST-F.

Note that the 8.0% per annum dividend rate is a gross amount and still subject to 10% withholding tax for Filipino investors.