Argentine citrus company San Miguel has put more than 58.5 million shares up for sale to investors, and may well increase the number to 67.275 million, in a bid to fund its ambitious expansion plans.

Speaking with Fresh Fruit Portal, San Miguel institutional relations director Lucas Méndez Trongé said the offering, which could end up reaching US$50 million in extra capital, would allow the group to increase fruit production, raise its processing capacity and industrial development, and also acquire new companies both locally and abroad.

If all the shares are sold it will equate to a sell-off of 9.46% of the company. 

"The control group (made up of the Miguens and Otero Monsegur families), currently have 58.7% of shares and will refrain from buying new ones to allow for more people to join the company," Méndez Trongé said.

"Currently 27% is in the hands of the state through ANSES, and the remaining 14% are floating shares."

The indicative price of the offering is between ARS95-135 for every 10 new shares, which would translate to an indicative value of US$43.4-50 million.

"Until March 7 interested parties will be able to register for new shares so that after that date, a price can be determined according to the offers, defining who will be the owners of these new shares," Méndez Trongé said.

As has been reported previously, San Miguel aims to increase its exports to 300,000 metric tons (MT) per year, compared to the current level of 130,000MT. This requires growth in production and planting surface area.

"This first objective will be done through association with new producers, or even through new plantings," he said.

In addition, San Miguel plans to increase its processing capacity through a new citrus pulping plant in Uruguay, where it already has operations.

In addition to strengthening its operations in South Africa as well, San Miguel also aims to gain new market access agreements in India, China, South Korea, Brazil and Mexico, along with a better development and positioning in the U.S. (where it is still waiting on delayed entry approval), Brazil, Russia and Japan.

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