June 8, 2011


San Miguel Corporation seeks Asian firm acquisition
San Miguel awaits to close a deal to get control of an Asian company with international operations, a move from its expansion strategy of recent years, said the company president, Ramon Ang, on Tuesday (Jun 7).
No further details of the planned purchase were given. "We will have a big international acquisition very soon. Signing of the deal is officially set in July," Ang said.
"Our strategy is domestic focused, but this opportunity is one we have been studying for a long time, because it is very profitable and has a big potential. It is already established and is operating very well, and it has a good net worth," Ang said.
Ang said in February that the company was actively pursuing acquisitions of coal mines outside the country, including in Indonesia and Australia. He declined to confirm on whether the target was a mining firm.
Earlier, San Miguel was in talks to expand its 10% stake in Australian miner Indophil Resources NL, whose main asset was a stake in a Philippine mine.
The two firms had agreed not to extend exclusive talks after they expired in February, but did not rule out a sale or partnership possibilities.
Ang said San Miguel, which also has interests in food and beverage and oil refining, did not need new financing for its acquisition, for which the company raised US$900 million in April out of the sale of common shares and bonds.
San Miguel's last overseas purchase worth US$40 million, which was completed in early 2010, was a controlling stake in Cospak Group, an Australian packaging firm.
The company, valued at US$6.2 billion, eyes to launch a secondary offer this year for each of its units with a public float of less than the required 10%, such as San Miguel Brewery and San Miguel Pure Foods.
"Within this year, we will do everything to comply with the Philippine Stock Exchange (PSE) requirement of 10% public ownership," Ang said.
For Pure Foods, the corporation was open to selling more than 10%. San Miguel failed to sell a minority stake in the food firm last year because investors wanted to buy control.

San Miguel chairman Eduardo Cojuangco said the group was willing to sell 49% of its business units, including in its unlisted power firm, SMC Global Power Holdings.

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