San Miguel clarifies brewery unit not for sale
MANILA, Philippines – San Miguel Corporation (SMC) stressed that it is not selling its beer unit, San Miguel Brewery, saying it continues to do well and has a mutually beneficial relationship with its joint venture partner, Japan’s Kirin Holdings Co. Inc.
On May 8, SMC President and COO Ramon S. Ang was asked on the sidelines of San Miguel Purefoods Company, Inc.’s annual stockholders meeting if SMC would sell San Miguel Brewery (SMB) for an “outrageous price.”
“Hindi ko alam ang outrageous price na puwede nilang i-offer para hindi ka na mag-isip,” Ang told reporters (I don't know what outrageous price they can offer so you won't even have to think about it.). Major dailies, including Rappler, ran the story on the matter. (READ: San Miguel mulls selling stake in beer unit)
SMB is a 51:49 joint venture between San Miguel and Kirin. Kirin earlier said it will seriously consider and make its own valuation should SMC decide to sell its stake in SMB.
In a disclosure sent to Philippine Stock Exchange (PSE) dated Tuesday, May 12, SMC said Ang was hypothetically asked about the matter, and that the executive basically responded that any businessman would consider an “outrageous” offer.
“He (Ang) clarified though that SMC’s beer business is doing very well and that it is providing the conglomerate good returns,” the disclosure read, signed by Ferdinand K. Constantino, SMC’s corporate information officer.
“Its beer business is not for sale,” it stressed.
It added that SMC has made itself clear on several occasions that its partnership with Kirin continues to be mutually beneficial for both sides.
SMB reported May 10 that its net income for the first quarter jumped 20% to P3.3 billion ($74.04 million). (READ: SMB first quarter net income jumps 20% to P3.3B) – Rappler.com
$1 = P44.57