Regulator OKs San Miguel subsidiary’s hike in capital

THE SECURITIES and Exchange Commission approved the increase in authorized capital stock of San Miguel Packaging Specialists, Inc. to P11 billion from P10 billion. The increase in capital, approved last Jan. 31, was to accommodate parent firm San Miguel Corp.’s transfer of assets, the company said. San Miguel Packaging Specialists Finance Manager Elizabeth V. Mercado said San Miguel subscribed to 769,372 common shares out of the increase in authorized capital stock at a subscription price of P1,149 per share. It also subscribed to an additional 5.46 million shares of stock in the packaging unit in exchange for certain assets which were transferred through several deeds of assignment entered into last Dec. 18. San Miguel transferred to its packaging division, a building at Canlubang Industrial Estate in Laguna last December. It also executed a deed of assignment of personal property for 8,109 common shares in the packaging unit. San Miguel also transferred 30,000 shares of stock in SMC Yamamura Fuso Molds Corp. with a total book value of P67.77 million as of Dec. 31, 2006 in exchange for 58,977 common shares in San Miguel Packaging. Ms. Mercado also said San Miguel paid for 5.29 million shares through the conversion of P6.08 billion in advances it made to its subsidiary. San Miguel Packaging Specialists is a 65% owned subsidiary of San Miguel under the packaging group. It manufactures packaging products and PET containers. It also handles the recycling of PET containers, making it Asia’s first food-grade recycling system using state-of-the-art technology. Last April 2007, San Miguel entered into a sale and purchase agreement with Nihon Yamamura Glass Co., Ltd., a leading Japanese manufacturer of glass and plastic container, for the sale of a 35% stake held by the food and beverage firm in the packaging businesses. The agreement, concluded last week, will allow Nihon Yamamura Glass to participate in other packaging formats already being produced by San Miguel such as metal, metal closure, carton, plastics and composites. "The expanded partnership will bring together the strengths of the two companies in the manufacture and marketing of innovative packaging solutions and products for regional customers," San Miguel said last week in a disclosure to the Philippine Stock Exchange. — RAMR, BusinessWorld