San Miguel OKs investment in Skyway, Star roads, Nonoc mining
MANILA, Philippines (UPDATED) - The board of diversified conglomerate San Miguel Corp., approved the investment in two infrastructure projects and a mining project.
In a disclosure to the stock exchange on Thursday, December 13, San Miguel said its board issued green light on its planned investment in Skyway and Arterial Road (STAR) project.
It also approved the company’s investment in Nonoc nickel mining project.
In January, San Miguel had told the exchange that it was in talks with the controlling stockholders of Philnico Mining Corp and was evaluating the viability of investing in the Nonoc Nickel Mining Project
San Miguel président Ramon Ang had reportedly signed an agreement in January with Philico to rehabilitate the latter's nickel processing facility on Nonoc island.
"The company shall make appropriate disclosures upon completion of the foregoing transactions” San Miguel said.
San Miguel already has existing mining stakes.
Since 2010, San Miguel acquired interests in the concession holders of several coal deposits in South Cotabato in Mindanao.
Through San Miguel Energy Corp, the group has 100% stake in coal mining properties in Lake Sebu in South Cotabato and Sultan Kudarat (Sultan Energy Phils. Corp, Daguma Agro Minerals Inc) and in the Saranggani province (Bonanza Energy Resources, Inc).
All 3 are still in the exploratory stages of their mining activities.
San Miguel also has a minority 3.99% interest in Indophil Resources NL, which indirectly holds a 15% interest in the entity that has rights over the US5.9 billion Tampakan gold and copper project.
Infrastructure, on the other hand, is one of the recent addition to the diversified business portfolio of San Miguel, originally a food and drinks giant.
It operates with partners in its investments in most of the infrastructure concessions, including several tollroads.
The Skyway project is an elevated toll road that mostly runs above the South Luzon Expressway (SLEx), one of the 3 major expressways that link Metro Manila to key southern provinces.
San Miguel, through its 46.53% stake in Citra's unit, Atlantic Aurum Investments BV (AAI), also has a stake in South Luzon Tollway Corporation (SLTC), the concession holder for the 36-km SLEx.
Under their initial agreement, San Miguel has the option to increase its stake in Atlantic Aurum to 51% at a later date.
Citra Group and San Miguel Holdings have been studying the possibility of participating in the upgrade and expansion of the 42-kilometer Southern Tagalog Arterial Road (Star) tollroad project.
The two companies were also invited by the Star Tollways Corp. group to invest in Phase 2 of the Star Tollway project, which involves the widening of the existing two lanes to four lanes from Lipa to Batangas City.
San Miguel, through its unit Rapid Thoroughfares, Inc., also has a stake in the Tarlac-Pangasinan-La Union Toll Expressway (TPLEx). Construction of the 88-kilometer tollroad is underway.
Meanwhile the board of San Miguel also approved the declaration of P0.35 cash dividend on common shares to stockholders as of record date Jan 4, 2013. Payment date in on Jan 30, 2013. - Rappler.com