E-Malt.com News article: Philippines: San Miguel $597 mil domestic beer unit Initial Public Offering may be in Q2 2008

San Miguel Corp's planned float of its flagship domestic beer unit may be pushed back to the second quarter of 2008 from the first, company president Ramon Ang said, according to Reuters, December 6.

The listing of the division of Southeast Asia's largest food and drinks group, which contributes around 40 percent of group operating profit, is expected to raise 25 billion pesos ($597 million) which would partly help fund the group's venture into heavy industry.

"I think the IPO would be in the second quarter," Ang told Reuters. "We will try to do it as soon as possible but there are many reporting requirements, it might take up to the second quarter."

Top Japanese brewer Kirin Holdings, which holds 20 percent in San Miguel, is widely expected to take up a substantial portion of the San Miguel Brewery unit.

"We are interested in the domestic beer business which has currently been planned to be spun-off," Kirin officials told Reuters in an e-mail on Thursday. "But again, we have not reached any decision or stage to make official comments."

San Miguel, founded as a brewery in 1890, is restructuring its core operations and diversifying into power, mining and real estate as it seeks to reduce reliance on a maturing local market for beer, dairy, processed food, grains and poultry.

Ang was positive on his company's bid to win the multi-billion dollar operating licence for the national power grid next week. If it wins the bid, it would be San Miguel's first foray into the energy sector after losing an auction for the country's biggest geothermal firm last month.

"The competition is very strong but we will go and bid and submit the best bid, and we hope to win," Ang said of the Dec. 12 auction.

San Miguel's energy unit, which has teamed up with TPG Aurora B.V., is up against three other groups, including foreign investors from Italy, China and India, for the National Transmission Corp (Transco).

San Miguel Brewery dominates the local market for beer with an estimated share of 93 percent.


07 December, 2007