San Miguel mulls selling stake in beer unit
MANILA, Philippines – Diversified conglomerate San Miguel Corporation (SMC) president and chief operating officer Ramon S. Ang said the company may consider selling its stake in the beer unit for an “outrageous price” to its joint venture partner Japan’s Kirin Holdings Company Incorporated.
Ang though refused to say how much that “outrageous offer” would be, but said San Miguel Brewery (SMB) has a value of $6 billion.
SMB is a 51:49 joint venture between San Miguel and Kirin. Kirin earlier said it will seriously consider and make its own valuation should (SMC) decide to sell its stake in SMB.
“Hindi ko alam ang outrageous price na puwede nilang i-offer para hindi ka na mag-isip,” Ang told reporters at the sidelines of the San Miguel Pure Foods (SMPFC) annual stockholders meeting. (I don't know what outrageous price they can offer so you won't even have to think about it.)
Ang added the company’s beer business has been providing stable earnings for the conglomerate for the past years.
For the first quarter of 2015, SMB posted 20% growth net income on strong volume growth, he said.
Actual figures will be released Monday, May 11.
Meanwhile, SMPFC may be interested in venturing into branded snack food, condiments, and noodles businesses to expand its food manufacturing business.
Meanwhile, SMPFC chairman Eduardo Cojuangco Jr said the company is on the lookout for new acquisitions that will enable it to enter into new ventures.
SMPFC is a food manufacturer in the Philippines with a diversified product portfolio of animal feeds, poultry and fresh meats, processed and canned meats, flour, spreads, butter, margarine, coffee, and ice cream.
“We’re now in the best position to take advantage of the opportunities in the food manufacturing industry,” Cojuangco said in his speech during the company’s annual stockholders meeting.
Last year, SMPFC acquired local business maker La Pacita.
In the first quarter of 2015, SMPFC reported a 7% increase in net income amounting to P911 million on the back of higher volumes, better selling prices, and the strong performance of its core brands.
Consolidated revenues for the first 3 months of the year reached P25.1 billion ($562.09 million), up 4% over the same period in 2014.
Operating income grew by 10% to P1.47 billion ($32.93 million) driven by the strong performance of its flour and feeds businesses. – Rappler.com
$1 = P44.64