San Miguel Pure Foods Co Inc will be renamed San Miguel Food and Beverage Inc and expand to include alcoholic and non-alcoholic drinks.
A company filing to the Philippine Stock Exchange stated that San Miguel Pure Foods will acquire 7.859bn common shares of San Miguel Brewery Inc (SMB) and 216.972m shares of Ginebra San Miguel Inc (GSMI) from parent SMC, which will then subscribe to 4.242bn additional common shares of San Miguel Pure Foods.
The valuation of the shares was based on an independent report by ING Bank NV, with Standard Chartered Bank as the transaction adviser.
Currently, San Miguel Pure Foods’ business comprises the manufacturing and marketing of coffee, animal feeds, meat products, ice cream and dairy products, and biscuit and flour-based snacks.
The approval of the board of directors of SMC took place during a special meeting and was filed and disclosed by Ferdinand Constantino, corporate information officer.
SMC will have to file for tax-free ruling to the exchange of SMC and GSMI common shares, for the new shares.
Bottle business deal
A special shareholders meeting has been called for January 18, 2018 to ratify the transaction.
SMC also announced this week that its international packaging unit under group company San Miguel Yamamura Australia Pty Ltd, has bought Best Bottlers Pty Ltd, an Australian wine bottling and packaging firm. The amount was not disclosed.
Constantino stated: “We confirm that San Miguel Corporation, through San Miguel Yamamura Australia Pty Ltd, acquired Best Bottlers Pty Ltd, a wine bottling and specialised packaging facility in Australia, with the end in view of further expanding the packaging presence of the San Miguel Group in the Australasian region.”
This acquisition is the third this year and in Australia for San Miguel Yamamura after Barossa Bottling and Portavin. It is also SMC’s fifth acquisition in the Australasian region serving the wine industry.
In August, SMC reported that first half revenues rose 20% to P393.4bn (about US$7.7bn) for the first six months of 2017, following higher sales from fuel and oil, infrastructure, core beverages, food and packaging.
Then, San Miguel Pure Foods reported consolidated revenues of P56bn (about US$1.1bn), up by 5% year-on-year due to higher volumes and favourable selling prices for branded value-added as well as agro-industrial food businesses.