SMC keeps stake in Bank of Commerce

MANILA, Philippines – Conglomerate San Miguel Corp.will maintain its stake in Bank of Commerce (BoC) despite the entry of a new investor, Malaysia’s CIMB, a top SMC official said.

Ramon Ang, SMC president and chief operating officer, told The STAR that they would continue investing in BoC through a partnership with CIMB.

“We will invest in CIMB,” Ang said, when asked about San Miguel’s plan once the Malaysian bank’s entry into BOC is consummated.

Ang did not say if San Miguel’s partnership with CIMB would mean more acquisitions in the banking sector.

Ang did not elaborate on the possibility of strengthening the group’s foothold in the financial sector given its aggressive expansion in various businesses such transportation with its recent acquisition of a majority stake in flag carrier Philippine Airlines (PAL).

Apart from SMC, BoC and PAL, the conglomerate also controls stakes in PAL Holdings, Trustmark Holdings Corp. and Zuma Holdings and Management Corp.; Petron Corp., Petron Marketing Corp., SMC Global Power Holdings Corp.; Manila Electric Co., Ginebra San Miguel, San Miguel Pure Foods Co. and San Miguel Yamamura Haiphong Glass Co. Ltd. (Vietnam).

The group also controls San Miguel Properties, San Miguel Electric Corp., San Miguel Energy Corp., Lode Mining Ventures Corp., Bell Telecommunication Phil., San Miguel Beverages and San Miguel Holdings Corp.

San Miguel Brewery, San Miguel Foods, San Miguel Paper Packaging Corp., and South Luzon Tollway Corp. are also part of the SMC conglomerate.

BoC which started operations in 1991 is one of the Philippines’ progressive commercial banks.

In 2007, BoC was bought by San Miguel Properties. The acquisition was hinged on the property arm’s need to have a ready credit line for its projects.

In early 2010, San Miguel Properties sold its stake in the bank to the SMC Group Retirement Funds.