Salada plans $50m rescue for subsidiary
Salada Foods Jamaica Limited and other shareholders plan to shore up the food processing subsidiary with a capital injection equivalent to $50 million.
Mountain Peak Food Processors Limited will increase its authorised capital from 10,000 shares to 1 million. The additional shares will be issued to current shareholders at $50.50 per unit to raise $50 million as working capital.
Salada as 80 per cent owner of MPFP is entitled to 792,000 of the additional 990,000 shares to be issued. It plans to take up all of its entitlement, which means it's covering $40 million of the fresh capital. It will also take up any shares not subscribed by the minority owners.
Salada said the $50 million would finance continued build-out of the Robert's brand through product development and marketing in Jamaica and overseas.
MPFP has been a loss maker over its three years of operation.