SMC – Page 2 – Maniolas

SMC raising $4 B to fund transformation

Economy

Jul 152013

MANILA, Philippines – San Miguel Corp.’s plan to raise about $4 billion by selling power assets brings it closer to funding the Philippines’ biggest company’s expansion into industries and infrastructure. The Southeast Asian nation’s most acquisitive company plans to spend $35 billion to complete Ramon Ang’s strategy to transform SMC from a brewer and foodmaker into an investor in energy, mining, airlines and roads. San Miguel, which started making beer before the country declared independence from Spain more than 100 years ago, has made more than $5.6 billion worth of purchases since 2008, when it announced an investment in Manila Electric Co. That stake has more than tripled in value, while Ang acquired control of Petron Corp., the country’s largest refiner, and bought three of the nation’s biggest power plants. “Ang has been an opportunistic entrepreneur and he has seen better opportunities so he’s selling assets that have already paid off to fund these new ventures,” said Marvin Fausto, who oversees about $20 billion as Manila-based chief investment officer at BDO Unibank Inc. “He’s moving assets from one to the other, liquidating those where he has made money, and financing opportunities that will eventually pay off like toll roads and airlines.” Completion of Ang’s plan to sell a 32.8- percent stake in Meralco and 49 percent of SMC Global Power Holdings Corp. would bring his asset sales in the past seven years to about $10 billion, according to data compiled by Bloomberg. “If we can sell something, good,” Ang said Read More …

SMC to unload banking, power generation business Conglomerate seeks more diversified investments

Economy

Jul 112013

SMC to unload banking, power generation business Conglomerate seeks more diversified investments

MANILA, Philippines – Conglomerate San Miguel Corp. (SMC) is far from over in its diversification process, its top executive said. SMC plans to unload shares in its banking and power generation businesses to pursue projects like cement manufacturing, oil and gas investments and airport development, among others. “We are still pursuing the diversification. Whenever there is a good opportunity to invest in something that will give a good return to SMC, we will pursue that,” said SMC president and chief operating officer Ramon S. Ang to reporters. “We are 60 percent of where we want to be,” Ang said, adding that SMC expects to “accomplish something in the next couple of years.” In 2007, the conglomerate started selling parts of key businesses to fund diversification from the mature food and beverage businesses into high-growth and capital-intensive sectors like power generation, mining, infrastructure and telecommunications. To fund new ventures, the food-to-power conglomerate is set to sell shares in existing units. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For instance, Bank of Commerce has received offers from numerous local and foreign investors for an equity infusion. “We have authorized shares that are not yet issued,” Ang said, adding that SMC is still studying an option to sell up to 40 percent of Bank of Commerce. Late in June, SMC’s plan to sell subsidiary Bank of Commerce fell through as it failed to close the P12.2-billion transaction with buyer CIMB Group Holdings of Malaysia. Its stake in power generation business SMC Read More …

Construction of NAIA Expressway to start in January

Entertainment

Jul 112013

MANILA (Mabuhay) – The government and a subsidiary of San Miguel Corp.(SMC) on Monday formally signed a P15-billion concession agreement to construct and operate the airport expressway. The concession agreement was signed by Public Works Secretary Rogelio L. Singson and SMC chief financial officer Ferdinand K. Constantino. San Miguel’s Optimal Infrastructure Development Inc. is building […]

SMC to start NAIA Expressway construction in Jan

Economy

Jul 082013

SMC to start NAIA Expressway construction in Jan

MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) is expected to kick off the construction of the P15.86 billion Ninoy Aquino International Airport (NAIA) Expressway in January next year after inking a concession agreement with the Department of Public Works and Highways (DPWH). DPWH Secretary Rogelio Singson signed yesterday a concession agreement with SMC chief financial officer Ferdinand Constantino under the Aquino administration’s Public-Private Partnership (PPP) scheme. The signing was witnessed by DPWH Undersecretary Rafael Yabut, DPWH assistant secretary Maria Catalina Cabral, Public-Private Partnership (PPP) Center deputy executive director Ferdinand Tolentino, and SMC treasury infra head Raoul Eduardo Romulo. “The NAIA Expressway project exemplifies the extreme support and confidence of private sector in helping pursue development infrastructure plans and programs of the government through PPP,” Singson said in a statement. The 7.15 kilometer four-lane NAIA Expressway project is a strategic part of the envisioned Metro Manila Urban Expressway System to be built around a network of expressways serving Metro Manila. The project valued at P15.86 billion would provide access to NAIA Terminals 1, 2, and 3 linking the Skyway in the South Luzon expressway (SLEX) and the Manila-Cavite Toll Expressway (Cavitex). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 It would also support the development of the Philippine Amusement Gaming Corp. (Pagcor) Entertainment City located along the Manila Bay reclamation area. It will connect all three terminals of the NAIA Complex and ease the flow of traffic to and from the airport. The project involves the improvement of Read More …

Bank of Commerce sale falls apart

Economy

Jun 222013

MANILA, Philippines – Diversified conglomerate San Miguel Corp.’s (SMC) plan to unload subsidiary Bank of Commerce fell through after CIMB Group Holdings walked away from the supposed P12.2 billion transaction. In a disclosure to the Malaysian Stock Exchange over the weekend, CIMB said the parties failed to reach an agreement after extending negotiations when the sale and purchase agreement (SPA) lapsed. “As such, the parties will not proceed with the proposed acquisition, CIMB said. Surces said land issues were one of the factors blamed for the failed deal. Under the Philippine Constitution, foreigners are barred from owning land in the country. CIMB said the SPAs with sellers San Miguel Properties Inc., SMC Retirement Plan and Q-Tech Alliance Holdings Inc. lapsed in December while the deal with minority shareholders expired in February. In 2012, CIMB agreed to buy SMC’s 60-percent stake in BoC for P12.2 billion. SMC currently owns 84 percent of the mid-sized lender. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Regulators Bangko Sentral ng Pilipinas and Bank Negara Malaysia had already approved the deal, which would have allowed CIMB to gain a foothold in the Philippines’ banking sector while giving SMC additional cash for its diversification projects. Early this month, SMC said the transaction would push through in July. CIMB is the second largest bank in Malaysia with presence in eight of 10 ASEAN nations (Malaysia, Indonesia, Thailand, Singapore, Cambodia, Brunei, Vietnam and Myanmar). It also has market presence in China, Hong Kong, Bahrain, India, Sri Lanka, Read More …

PAL shops around for more planes

Economy

Jun 172013

MANILA, Philippines – Flag carrier Philippine Airlines (PAL) is still on the lookout for new aircraft as part of its fleet modernization program. PAL has already ordered around 70 new aircraft that will lower operating costs moving forward, its top official said last week. “Slowly, we are looking at different aircraft types,” PAL president Ramon S. Ang said when asked if the airline is still planning to buy more airplanes. Ang said PAL is also factoring in “good opportunities, good prices and good performance” for further aircraft acquisitions. Since the entry of San Miguel Corp. (SMC) in April 2012, PAL has embarked on a massive refleeting program aimed at acquiring 100 new aircraft to replace its existing fleet. It expects to save as much as $400 million from fuel and maintenance costs per year as part of its refleeting program. PAL entered into a $7-billion contract with Europe’s EADS Group in August for the acquisition of 54 Airbus aircraft consisting of 34 A321ceo, 10 A321neo, and 10 A330-300s, and another $2.5 billion deal in September to exercise an option to buy 10 more A330 aircraft. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Ang, who is also president and chief operating officer of SMC, said PAL’s order is already more than 70 aircraft. Diversified conglomerate SMC owns 49 percent of PAL and is in charge of the airline’s management. “Our investment in PAL and sister airline PAL Express is also an important piece in our overall vision for SMC,” Read More …

MVP not keen on SMC’s Meralco shares

Economy

Jun 142013

MANILA, Philippines – The group of Manuel V. Pangilinan is comfortable with its shareholding in the country’s largest power distributor Manila Electric Co. (Meralco) and is not likely to buy out San Miguel Corp.’s (SMC) assets in the firm. “We are comfortable with our current shareholding in Meralco and we would be prepared to assist should San Miguel decide to dispose assets in Meralco,” Pangilinan told reporters following the stockholders meeting of Philippine Long Distance Telephone Co. (PLDT) yesterday. “There has been no final decision to what extent we may or may not participate, but if we do, we may consider participating in a modest way,” he said further. He said that should the group decide to acquire more Meralco shares, it would not be to the point where their total stake would go over 51 percent. “(We will participate but) not to the point it will trigger tender offer obligation,” he said. A mandatory tender offer is triggered when an investor accumulates more than 51 percent stake in a public company. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The acquiring company should then offer to buy all shares held by minority shareholders. SMC president and chief operating officer Ramon S. Ang said earlier that the diversifying conglomerate is willing to sell its stake in Meralco. SMC owns around 36 percent of Meralco, making it one of the top shareholders in the company. Beacon Electric Asset Holdings, Inc., a subsidiary of Pangilinan-led Metro Pacific Investments Corp., controls nearly Read More …

PAL to remain listed – Ang

Economy

Jun 052013

MANILA, Philippines – National carrier PAL Holdings Inc., partly-owned by conglormerate San Miguel Corp. (SMC), will remain a listed company, its top executive said. PAL, Asia’s oldest airline, is preparing a share sale through Philippine National Bank (PNB), president and chief operating officer Ramon S. Ang said. “I think we will comply [with the public float rule],” he said. “That is what our partner wants, to keep it listed,” Ang said, adding that the share sale will be facilitated by PNB, which is owned by PAL’s controlling shareholder, taipan Lucio Tan. In January, the Philippine Stock Exchange suspended the trading of seven firms including PAL due to their failure to meet the required minimum public ownership level of 10 percent. To date, PAL has a public float of just 0.55 percent. The PSE said listed firms that fail to increase their public ownership level to at least 10 percent will have their shares delisted starting June 30, 2013. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In May last year, diversifying conglomerate SMC bought a 49-percent stake in PAL for about $500 million. SMC also gained management control of the airline. Since the entry of SMC last year, PAL has embarked on a massive re-fleeting program aimed at acquiring 100 new aircraft to replace its existing fleet. It expects to save as much as $400 million from fuel and maintenance costs per year as part of its re-fleeting program. Meanwhile, Ang said SMC is still pursuing plans to put Read More …

San Miguel releases P11B for NAIA Expressway project

Economy

Jun 052013

San Miguel releases P11B for NAIA Expressway project

MANILA, Philippines – The Ninoy Aquino International Airport’s (NAIA) Terminals 1 and 2 will soon be connected to the Diosdado Macapagal Boulevard and the Entertainment City casino complex after the San Miguel Corp. (SMC) released P11 billion for the construction of the NAIA Expressway Phase II project, the Palace announced on Wednesday. SMC made the payment through the SMC Vertex Tollways Development, Inc. after winning the bid last April 15. The Department of Public Works and Highways sent to SMC last May 6 the formal notice for award for the project. Presidential Spokesman Edwin Lacierda said the project could start some time this month, to be divided in two phases. The proposed NAIA Expresssway has a total length of 7.15 kilometers, with the first phase expected to be completed in time for the Asia Pacific Economic Cooperation (APEC) summit in 2015. “Hopefully before APEC, that will be completed. There’s another phase which is II-B, which will connect the Skyway to the existing tollways,” Lacierda said. The P15.5-billion NAIA Expressway Phase II project is the third public-private partnership project to be successfully bidded out by the government, the Palace reported.

SMC secures $1-B loan to pay debts

Economy

May 302013

MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) has secured a $1-billion loan from five banks to pay off its existing debts. Another $200 million will be tapped to maximize available funding under a $1.3-billion, five-year loan agreement, SMC said in a disclosure yesterday. “The company availed of a $1.3-billion facility loan agreement, which includes a greenshoe option,” SMC said. “To date, of the total amount available under the facility, the company has drawn $1 billion to pay in full and refinance its existing $1-billion loan,” it added. SMC earlier tapped Australia and New Zealand Banking Group Ltd., DBS Bank Ltd., Deutsche Bank AG, Bank of America Merrill Lynch and Standard Chartered Bank for a loan agreement. “The company intends to avail of an additional $200 million through the exercise of the greenshoe option under the facility,” SMC said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The diversified conglomerate has been paring its debts through new loans that offer better terms. In April, SMC generated $800 million from the largest issuance of a dollar-denominated bond by a Philippine company. It forms part of a $2-billion medium-term notes program of SMC. The holding firm is undergoing a five-year, $34.83-billion investment program that will make it the largest investor in the Philippines. The conglomerate said it will spend an average of P283.52 billion every year until 2017. From its core brewery and food business, SMC has expanded into power production (SMC Global Power Corp.), downstream oil sector (Petron Corp.), Read More …

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