It’s confirmed: San Miguel Brewery to delist May 15

MANILA, Philippines (UPDATED) – San Miguel Brewery Inc., the country’s biggest brewer, will be delisted from the Philippine Stock Exchange on May 15. 

On Thursday, May 9, the board of San Miguel Brewery, a unit of the country’s biggest conglomerate and Japanese brewer Kirin, disclosed that it had approved the delisting as the beer maker’s public ownership remained below the 10% minimum required by the exchange. 

As of Dec. 28, 2012, San Miguel Brewery had a public float of only 0.61%. Trading of its stock has been suspended since January 2, when the rule on the minimum public ownership of listed shares took effect.

Earlier, San Miguel Brewery made a tender offer of P20 per share, a deep discount against the stock that was trading at almost P30 per share.  

The brewer later told the exchange that it will make the mandatory offer to holders of 94,239,810 shares held by its shareholders other than parent San Miguel Corp. and Japanese brewer Kirin Holdings Company, Limited. from March 4 to April 3.

(VIEW: The public float rule and fate of San Miguel units, Kirin) 

San Miguel Brewery’s shares were last traded at P29.30 on December 28, 2012, the last trading day before the December 31 deadline to meet the 10% public ownership rule, which part of the exchange’s good governance efforts.

Being listed in the stock exchange translates to better access to financing, less cost on equity transactions, and an access to the public’s assessment of the company’s worth.

Food and drinks used to be San Miguel’s core business until it decided in 2007 to diversify into other businesses, including power, infrastructure, utilities, telecommunications, media, among others.

122-yr-old brand

This diversification led to the spin off of the domestic beer business from the parent firm into San Miguel Brewery Inc, which was incorporated on July 26, 2007. San Miguel Brewery listed in the stock exchange on May 12, 2008.

The brewery unit is primarily engaged in the manufacture and sale of fermented and malt-based beverages, particularly beer of all kinds and classes. SMB’s beer brands include, among others, San Miguel Pale Pilsen, Red Horse, San Mig Light and Gold Eagle.

San Miguel Pale Pilsen, the brewer’s flagship brand, has a history of over 122 years.

In 2009, San Miguel and Kirin acquired a 48.39% stake in the brewer, of which 43.249% was acquired from San Miguel and the remaining 5.14% via the succeeding mandatory tender offer.

San Miguel retained majority ownership of San Miguel Brewery with a 51% stake.

Months into and after the December 2012 deadline for erring firms to meet the 10% public ownership rule, San Miguel and Kirin still failed to agree on who-will-give-up-how-much in the brewer. – Rappler.com