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News
San Miguel looks to diversify
Phillipine brewer San Miguel is turning its attention to new industries such as mining and power generation. Shareholders have approved this shift in focus, which included plans to spin off the company’s domestic beer assets.
Company president Ramon Ang has suggested in the past that at least US$500 million worth of assets, including domestic beer and packaging units, would be sold off. Shares in San Miguel’s Australian business are also likely to be sold.
In addition, 1.5 billion preferred shares will be sold to fund the diversification of the company. Ferdinand Constantino, San Miguel’s chief finance officer, explained at a shareholder’s meeting that investment could “go up to 10% of our total assets.” This is an estimated US$750m.
Chairman Eduardo Cojuangco commented that the intention of this move was to “be in industries that have scale and will grow and we are determined to build leadership positions in key areas where important trends are driving future growth.”
The company has reportedly been advised by Goldman Sachs to industries such as power, mining, infrastructure, water and property.
Clinton Cawood, 25/07/07