San Miguel eyes listing of its packaging business

MANILA, Philippines - San Miguel Corp. (SMC), Southeast Asia’s largest food conglomerate, plans to undertake an initial share sale of its packaging unit, San Miguel Yamamura Packaging Corp. as early as end-2009, a senior company official said. The packaging unit’s initial public offering (IPO) may be made before the year ends as long as market conditions provide the opportunity, SMC president Ramon S. Ang said. Ang told reporters during the recent visit of World Boxing champion Manny Pacquiao at the food conglomerate’s headquarters in Pasig. He added that the packaging unit’s listing will be the company’s main focus. San Miguel recently moved to unify all its packaging businesses under a single entity by acquiring shares of two partners in two separate joint ventures. The company bought out stakes held by Rengo, its Japanese partner in San Miguel Rengo Packaging Corp. (SMRPC) and Macondray Fibreboard Corp. in Mindanao Corrugated Fibreboard Inc. (Mincorr). Both buyouts reached a total of P277.1 million. Both companies, which produce corrugated boxes used primarily by the SMC, are expected to subsumed under San Miguel Yamamura. Earlier, Ang said the company plans to sell 10 percent of its packaging business to the public and use proceeds to fund its diversification plans. - GMANews.TV