SMC buys Japanese partner's stake, securing ownership of packaging unit

MANILA, Philippines - San Miguel Corp. (SMC) has acquired the stake of its Japanese partner in San Miguel Rengo Packaging Corp. (SMRPC), securing its full ownership of the packaging company. Worth P250 million, the acquisition also includes a separate stake held by Japan’s Rengo Co. Ltd. in Mindanao Corrugated Fibreboard Inc. (Mincorr), SMC said in a disclosure to the Philippine Stock Exchange (PSE). Mincorr is considered as the island’s largest packaging company. The company will also be acquiring Macondray Fibreboard Corp.’s 6.7 percent interest in Mincorr for P27.1 million, SMC said. Also known as San Miguel Yamamura Packaging Corp., SMRPC is the reportedly the Philippines’ largest manufacturer of metal closures, producing some 4.32 billion units of crowns and metal caps a year. The company, which produces glass, metal, paper, composite, and plastic packaging for consumer and industrial products, also makes two-piece aluminum cans with a total of 585 million cans a year. The transaction is expected to be closed within 10 business days after the endorsement of the sale and purchase agreement. The acquisition will also be one of SMC’s final steps before it spins off its packaging unit and proceeds with an initial public offering (IPO). The conglomerate has been buying into non-core businesses such as power generation, telecommunications, water utilities, and infrastructure. - GMANews.TV