Manila, Philippines - The shipping unit of diversifying conglomerate San Miguel Corp. (SMC) has acquired a controlling stake in Keppel Cebu Shipyard Land Inc. (KCSLI) for P596.2 million.
In its disclosure to the Philippine Stock Exchange, Keppel Philippines Holdings (KPHL) said it had approved the sale of the entire 72 percent of KCSLI held by Goodsoil Marine Reality Inc. (GMRI), a 51-percent subsidiary of KPHL.
KCSLI owns parcels of lands in Cebu. The company said the sale was approved as Keppel no longer has shipyard operations on the lands it used to own in Cebu.
The buyer of the shares in KCSLI is SMC Shipping and Lighterage Corp., a domestic corporation and a 70-percent subsidiary of SMC. It is in charge of the food-to-power conglomerate’s cargo handling, warehousing and shipping business.
Keppel said the SMC unit decided to acquire majority stake in KCSLI to expand its business interest. From its traditional feed, beverage and packaging businesses, SMC has diversified into power, infrastructure, telecoms and mining.
“It was arrived at on a willing buyer and willing seller basis, taking into account the fair market value of the property and the buyer’s strategic interest in the property,” Keppel said.