San Miguel to spin off, list beer, packaging businesses

San Miguel Corp. on Tuesday announced that it will be spinning off and listing in the local stock market its domestic beer and packaging businesses. In a statement, San Miguel said spinning off and listing domestic beer operations and domestic and regional packaging business would enhance the company's profitability. "We believe that stand-alone domestic brewing and packaging operations will enhance our companies' ability to complete more effectively in their industries. An IPO (initial public offering) would raise for each business much needed equity and allow it to grow faster and partner more effectively with other world class players like Kirin and Nihon Yamammura Glass," Ramon Ang, San Miguel president and COO, said in the statement. "This will provide both the beer and packaging business the financial flexibility and operating muscle that will boost operations moving forward. We are looking to unlock the potential and underlying value of the entire San Miguel Group," he added. The company has also sought board approval for its beer business to enter into a strategic partnership with Kirin Brewery Company Ltd., a Japanese firm which has a 20-percent stake in San Miguel. Last April 27, San Miguel signed an agreement with Nihon Yamamura for the Japanese company's 35-percent equity infusion in San Miguel's domestic and international packaging business. - Cheryl Arcibal, GMANews.TV