First Pacific mulls expansion of food business in region

Hong Kong-based First Pacific Co. is looking at possible opportunities for expanding its food business here and within the region.

First Pacific owns Indofood based in Indonesia, the world’s largest noodle maker. The conglomerate likewise controls more than 24 percent of Philippine Long Distance Telephone Co. and is the controlling shareholder of Metro Pacific Corp.

First Pacific chief executive Manuel Pangilinan told The STAR that the food business is one of the areas being looked at by the group as part of its regional expansion plan.

When asked whether he would make a bid for certain shares of Philippine food and beverage giant San Miguel Corp. which chairman Eduardo Cojuangco wants to sell to raise funds, Pangilinan said: "Are they for sale?"

Highly placed sources, however, revealed that Pangilinan is seriously interested in gaining entry into SMC. An earlier attempt by First Pacific to acquire Del Monte Pacific fizzled out. Since then, First Pacific, still awash with cash following a highly successful bond offer, has yet to make a major investment.

Cojuangco recently asked the Sandiganbayan to allow him to sell 73.33 million shares of stocks in SMC, proceeds of which will be used to pay off loans to the United Coconut Planters Bank (UCPB) and the Bank of Commerce. The shares, constituting 2.29 percent of SMC’s issued shares, are worth P6.05 billion.

Aside from the food business, First Pacific, through Metro Pacific Corp., is also looking at opportunities for expansion in infrastructure such as in tollways and in the power sector. The group is eyeing the acquisition of power transmission facilities to be privatized by the National Transmission Co. (TransCo).

First Pacific is likewise engaged in discussions with the foreign partners of the Manila North Tollways Corp. (MNTC) to acquire the foreign stake in the company that operates the North Expressway. First Pacific, through flagship company Metro Pacific, is also eyeing an increased stake in the Skyway project.

PLDT, meanwhile, is making a bid for RPN 9, a government broadcast station set to be privatized within the year. The telco is also looking at acquiring a smaller direct-to-home satellite television license following failed talks with Dream Broadcasting.