Del Monte cashes in $15M, trims Sundrop stake

Del Monte Pacific Limited (DMPL) is shifting gears in India, selling part of its stake in Sundrop Brands for about $15 million as it scales back its investment in the company.

In a Friday stock exchange filing, the company said the sale of 1.88 million shares, or roughly 5 percent of Sundrop Brands, “had been completed following the satisfaction of the relevant conditions precedent,” and that the “consideration of approximately $15 million had been received by the Group.”

The transaction was carried out through DMPL’s indirect subsidiary, DMPL India Ltd., and sold to CAG-Tech (Mauritius) Ltd.

Del Monte also said its India unit had entered into another agreement on December 24 to sell 548,000 more shares, or about 1.45 percent of Sundrop Brands, to a separate buyer.

The company noted the terms were agreed “on an arm’s length basis” and are “substantially similar” to the first sale. This second transaction is still subject to standard approvals.

The company said it will update the market as developments occur regarding the remaining Sundrop Brands shares.