San Miguel eyes stakes in banking, mining firms

MANILA, Philippines - Conglomerate San Miguel Corp. (SMC) is planning to acquire banks and mining companies after announcing intentions to sell and list shares of its various assets. “Banking investment...only needs a small amount," Ramon S. Ang, San Miguel president annd chief executive officer told reporters on Wednesday. “Valuations of banks are presently low." Mining, among others, is another area that the company is considering. “If there are any good opportunities, then we are open (to buy them)," Ang said. San Miguel's property developer, San Miguel Properties Inc., owns 31 percent of Bank of Commerce, the Philippines’ 15th largest lender. Acquisitions will be funded by proceeds from the initial share sale of its packaging unit, among others, the company said. The initial public offering of its packaging unit, San Miguel Yamamura Packaging Corp. will fetch some $100 million, while the sale of its foreign beer operations will add between $600 million and $700 million to the conglomerate's coffers, Ang said. “We will use the money for acquisition, payment of debts, and for organic growth of the company,“ Ang said. The company has promised its foreign partner in its packaging unit, Nihon Yamamura Glass Co. Ltd., that it will hold a maiden offering of the San Miguel Yamamura either this year or next. About 10 to 14 percent of San Miguel Yamamura's shares will be offered to the public. Yamamura owns 35 percent of the packaging unit. Meanwhile, San Miguel Brewery Inc., whose 48-percent stake is owned by Japanese brewer Kirin Holdings Co. Ltd., will acquire the entire international beer operations from San Miguel. Ang said San Miguel may sell the overseas beer business within the year. Since the announcement of its plan to diversify into heavy industries some two years ago, San Miguel is currently a major shareholder of power distributor Manila Electric Co. It is planning to be the majority owner of Petron Corp., the country’s largest oil refiner, within two years. San Miguel has also partnered with a Qatari firm for telecommunications venture. It is eyeing two existing telecommunication companies for acquisition. A subsidiary, San Miguel Bulk Water Co. Inc., has also submitted an unsolicited proposal to the government to construct the P48-billion Laiban Dam project. The company is also willing to invest between P2 billion and P3 billion to acquire majority stake in the yet to be constructed Tarlac-La Union Expressway. San Miguel has also confirmed that it is in talks with Goldman Sachs to buy the investment bank's stake in PT Adaro Energy Tbk, Indonesia's largest coal producer. - Cheryl M. Arcibal, GMANews.TV