October 24, 2003

Philippine San Miguel Corp Acquisition of Taiwan Tea Corp Permits Fast-Track Entry into Vietnam's Meat Industry

Philippine food and drink group San Miguel Corp. announced today that it aims to fast-track its entry into Vietnam's basic and processed meats market via its acquisition of the wholly owned unit of Taiwan Tea Corp., TTCV Investment Co.

Earlier Friday, San Miguel said it acquired TTCV Investment for $35.5 million, effectively giving it ownership of TTC (Vietnam) Co., which is engaged in pig farming and feed milling in Vietnam. The acquisition is expected to be completed by October 30.

TTCV Investment is San Miguel's first acquisition of a food business in Vietnam.

"With TTC (Vietnam) as springboard, SMC (San Miguel) aims to fast track its entry into the country's basic and processed meats market while creating a stronghold in its growing animal and aquatic feeds market," San Miguel said in a separate statement issued later Friday.

Included in the purchase are all the assets and facilities on a 234-hectare leased property located in Binh Duong province in Vietnam. The facility serves mainly Ho Chi Minh City, which is Vietnam's most progressive city, said San Miguel.

San Miguel said it intends to continue business operations with the majority of its 500-strong Vietnamese work force, supported by a core management team the company will appoint to oversee a smooth integration.