San Miguel Pure Foods plans to sell more shares

MANILA, Philippines - Ramon S. Ang-led San Miguel Corp. (SMC) is planning to sell more shares in its food and beverage giant San Miguel Pure Foods Co. Inc. (SMPF).

PAL Holdings Inc., to which SMC is a significant minority, will also sell shares to remain listed in the local bourse.

For SMPF, fresh capital from the entry of institutional investors will allow the company to expand its processed meats business.

“I think we can sell more [shares] because a lot of investors are interested in the company,” SMC president and chief operating officer Ramon S. Ang told reporters.

However, Ang said SMC wants to retain a controlling interest in all businesses including SMPF, power generation and beer.

In November, SMC sold a 15-percent stake in SMPF to institutional investors for P6 billion, allowing the food and beverage firm to jack up its public float to roughly 16 percent, already above the minimum 10-percent requirement of the local stock exchange.

SMC chief finance officer Ferdinand Constantino said proceeds from the sale of existing shares will fund the expansion of the processed meats production plant in Indonesia.

Ang said the processed meats business, which provides high margins for SMC, is enjoying double-digit growth annually in the past 10 years.

Proceeds of the share sale will also allow SMC to partially finance its planned acquisition of a $5-billion Asian involved in the energy sector, Ang said.

“We are at the moment engaged in active negotiations to invest in the energy business with a $5-billion equity investment,” Ang said.

“If we can sell something, it can help but for now we already have enough funding,” Ang said.

Meanwhile, PAL Holdings is keen on remaining a public company.

“I think they (PAL Holdings) are working on it to beat the deadline.