FROM SCRATCH NEWSWIRE

SCAVENGING THE INTERNET

SAN MIGUEL CORP. SELLS BEER ASSETS TO DOMESTIC BREWERY SUBSIDIARY – SAN MIGUEL CORP. (SMC) ANNOUNCED IT WOULD SHED ITS ASSETS IN THE BEER BUSINESS (Philippines)

Posted by Gilmour Poincaree on January 28, 2009

Thursday, January 29, 2009

by Chino S. Leyco – Reporter

PUBLISHED BY ‘THE MANILA TIMES’ (Philippines)

AFTER creating two new wholly owned subsidiaries, Southeast Asia’s largest food and beverage firm said on Wednesday that it is selling those units to San Miguel Brewery Inc. (SMB).

In its disclosure to the Philippine Stock Exchange, SMC said its board has approved the sale of domestic beer brands, related intellectual property rights and “know-how” to SMB for P32 billion.


The SMC board also told the local bourse that the land used in the beer operations would be sold to SMB for P6.8 billion. Another parcel would be sold to SMB Retirement Plan for P239 million.

Last year, SMC formed Brewery Properties Inc. and Iconic Beverages Inc. as part of its restructuring program. Earlier this month, Kirin Holdings Co. Ltd. said it entered into exclusive negotiations with SMC to buy a 43.25-percent stake in SMB. Kirin held 27 percent of SMC at end-December last year.

With its looming investment in SMB, Kirin said this will significantly contribute to the further growth of its alcohol business in Asia and Oceania.

SMB produces beer at five manufacturing facilities in the Philippines for sale in the local market.

Last year, SMC offered 5.75 percent of its shares in its domestic brewing business in an initial public offering. In the first nine months last year, the conglomerate’s profit rose on the back of non-recurring gains from SMB’s maiden share sale.

For the same nine-month period, SMB posted a 10-percent growth in revenues to P35.2 billion, resulting in a net income improvement of 23 percent to P7 billion year-on-year.

Besides carving out its beer operations, SMC has acquired a substantial stake in the Philippines’ largest electricity distributor, Manila Electric Co. (Meralco). The conglomerate also forged an option agreement with the Ashmore Group of UK for a 50.1 percent stake in Petron Corp. Besides the power sector, SMC is also eyeing the telecom industry, by signing a joint venture with Qatar Telecom QSC for a possible foray in to wireless broadband and mobile telecoms.

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PUBLISHED BY ‘THE MANILA TIMES’ (Philippines)

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