Ginebra in talks with 3 foreign liquor firms
MANILA, Philippines – Ginebra San Miguel, Incorporated – the liquor unit of conglomerate San Miguel Corporation – is in talks with 3 foreign firms engaged in the hard liquor business for possible acquisition.
San Miguel president and chief operating officer Ramon S. Ang said in an interview following the company's annual stockholders' meeting that Ginebra is on the lookout for acquisitions after it managed to regain leadership in the domestic market.
"There are many opportunities to acquire, mostly international business. We are in talks for acquisition, 3 foreign firms engaged in hard liquor business," Ang said.
The talks are being arranged by brokers.
While Ang refused to give details of the negotiations, he said San Miguel has a high success rate in terms of acquisitions.
"Madami tayong acquisitions in the last 8 years, since 2008, and we have success rate of 80% sa mga target natin across all industries. Sana swertehin pa tayo ulit," Ang said.
(We had lots of acquisitions in the last 8 years, since 2008, and we have success rate of 80% in our targets across all industries. I hope we can still get lucky.)
In 2015, Ginebra reduced its net loss to P385 million from P766 million in 2014.
In the first quarter of 2016, the liquor firm also registered P54 million in net income, a reversal from the P29 million net loss posted a year ago as net sales jumped 7% to P3.93 billion.
"We are confident that the company will sustain its gains for the rest of the year with relevant marketing initiatives that will resonate across consumer segments," said Ginebra president Bernard Marquez.
Defending coal-fired power plants
Meanwhile, Ang defended the company's decision to invest in coal-fired power plants, which other groups consider harmful to the environment.
He said San Miguel uses clean coal technology in its coal-fired power plants as opposed to pulverized coal power plants which are 7 times more harmful to the environment.
"If property-designed plant, halos walang pollution (almost no pollution), that is the kind of power plant that we are putting up. Clean coal technology, meaning circulating fluidized-bed broiler and our emission control comes with water spray tower and bad filters," Ang explained.
Last Monday, Lopez-led First Philippine Holdings Corporation (FPH) declared it will not invest in coal-fired power plants because of the harmful effects on the environment.
Instead of building coal-fired power plants, FPH president Federico Lopez said they will push for the development of geothermal power plants, as well as renewable energy like wind, solar, and hydro. – Rappler.com