SMC willing to sell up to 49% stake

MANILA, Philippines - San Miguel Corp., one of the country’s most diversified conglomerate, is open to selling more shares in all its businesses as part of its diversification strategy, its president said yesterday.

 SMC president Ramon S. Ang said the conglomerate is open to selling up to 49-percent stake in its different businesses.

“In traditional or non-traditional businesses, the idea is to only own up to 51 percent. You own anything more than that is not important,” Ang told reporters on the sidelines of the stockholders meeting of San Miguel Pure Foods Co. Inc.

He said the plan will apply for all the companies of SMC.

“The idea is to sell everything and keep 51 percent,” he said.

SMC has been shifting away from its core food and beverage business into growth industries such as power, tollways and telecommunications.

Last year, its board approved three steps to raise capital. These include plans to give up majority control over its crown jewels, to declassify its common class A and B shares, as well as asking shareholders to waive their preemptive rights to future stocks issues.

On Thursday, the food-to-power conglomerate reported a net income of P7.14 billion in the first quarter of the year, up by 146 percent over the same period last year, buoyed by strong revenues from its food and power businesses.