San Miguel eyes more telco, power firms
12/23/2009 | 09:58 AM
San Miguel Corp. will proceed with plans to acquire more companies that will give it a strong hold in the power and telecommunication industries.
Asked whether the company would bid for the government’s stake in the Philippine National Oil Co.-Exploration Corp. (PNOC-EC), San Miguel President Ramon S. Ang answered in the affirmative.
The government on Monday said it would pursue the privatization of PNOC-EC in the first quarter. It has increased the size of the stake to be sold to 60 percent from 40 percent.
The government expects to get P14-P15 billion from the sale.
San Miguel has been participating in government auctions of energy assets, marking its entry into the industry when it won the bidding for the 620-megawatt (MW) Limay combined-cycle power plant in Bataan in August.
It has also bagged the Independent Power Producer Administrator or IPPA contract for the Sual power plant in Pangasinan, and the 345-MW San Roque hydroelectric plant.
San Miguel told the exchange yesterday it would pursue discussions with "a company controlled by [former Trade Minister] Roberto V. Ongpin for the contemplated acquisition of an equity stake in Express Telecommunications, Inc. (Extelcom)."
But San Miguel is not stopping with Extelcom. After acquiring 49 percent of listed Liberty Telecommunications Holdings, Inc., one of the country’s oldest conglomerates, it said it might also consider investments in other telecommunication companies if given an opportunity.
Ang earlier said San Miguel was in the final stages of talks to acquire Extelcom, which is currently in the middle of a legal battle.
San Miguel has incorporated a wholly owned subsidiary, Vega Telecom, Inc. to consolidate its telecommunication ventures.
Extelcom is under corporate rehabilitation and has an outstanding debt of P9 billion.
Lopez-led Marifil Holdings Corp. used to be the biggest shareholder of Extelcom until its stake was reduced to 8.39 percent from 46.62 percent following a debt-to-equity swap mandated by a court-approved rehabilitation plan.
Marifil Holdings is owned by the Lopezes’ own telco, Bayan Telecommunications, Inc.
Ang earlier said San Miguel would buy Extelcom from Ongpin and UK-based Ashmore Investment Management Ltd.
It remains unclear whether Ongpin and Ashmore are connected to Trans Digital Excel, Inc., the creditor-turned-shareholder of Extelcom which had settled the cellular firm’s financial obligations with National Telecommunications Commission.
Trans Digital, a Filipino-owned company composed of institutional investors, had said San Miguel might buy it out to be able to enter Extelcom.
The move however is being challenged by Marifil Holdings in what it claims to be an "illegal dilution" of its stake in the debt-ridden telecommunication firm. It had described Trans Digital as a "vulture investor."
Since San Miguel announced plans to venture outside its core food and beverage businesses two years ago, it has been aggressively buying into major companies, which include Bank of Commerce, Manila Electric Co. and Petron Corp.
Also yesterday, the conglomerate disclosed that unit San Miguel Yamamura Packaging International Ltd. now has a 65 percent stake in Australian packaging firm Cospak Group, which San Miguel intends to use as a vehicle for its Australasian and export businesses.
San Miguel Yamamura bought 60.7 million shares of a stockholder of JHK Investments Pty Ltd., the parent of the Cospak Group, for A$34.65 million.
It likewise subscribed to 12.26 million more shares in JHK Investments for A$5 million.
The San Miguel group has been supplying packaging products to the Cospak Group since the early 1980s.
A shares of San Miguel, which are exclusive to locals, did not move at P68.50 apiece, while its B shares climbed by 0.73 percent to P68.50 apiece. — Kristine Jane R. Liu, BusinessWorld
Asked whether the company would bid for the government’s stake in the Philippine National Oil Co.-Exploration Corp. (PNOC-EC), San Miguel President Ramon S. Ang answered in the affirmative.
The government on Monday said it would pursue the privatization of PNOC-EC in the first quarter. It has increased the size of the stake to be sold to 60 percent from 40 percent.
The government expects to get P14-P15 billion from the sale.
San Miguel has been participating in government auctions of energy assets, marking its entry into the industry when it won the bidding for the 620-megawatt (MW) Limay combined-cycle power plant in Bataan in August.
It has also bagged the Independent Power Producer Administrator or IPPA contract for the Sual power plant in Pangasinan, and the 345-MW San Roque hydroelectric plant.
San Miguel told the exchange yesterday it would pursue discussions with "a company controlled by [former Trade Minister] Roberto V. Ongpin for the contemplated acquisition of an equity stake in Express Telecommunications, Inc. (Extelcom)."
But San Miguel is not stopping with Extelcom. After acquiring 49 percent of listed Liberty Telecommunications Holdings, Inc., one of the country’s oldest conglomerates, it said it might also consider investments in other telecommunication companies if given an opportunity.
Ang earlier said San Miguel was in the final stages of talks to acquire Extelcom, which is currently in the middle of a legal battle.
San Miguel has incorporated a wholly owned subsidiary, Vega Telecom, Inc. to consolidate its telecommunication ventures.
Extelcom is under corporate rehabilitation and has an outstanding debt of P9 billion.
Lopez-led Marifil Holdings Corp. used to be the biggest shareholder of Extelcom until its stake was reduced to 8.39 percent from 46.62 percent following a debt-to-equity swap mandated by a court-approved rehabilitation plan.
Marifil Holdings is owned by the Lopezes’ own telco, Bayan Telecommunications, Inc.
Ang earlier said San Miguel would buy Extelcom from Ongpin and UK-based Ashmore Investment Management Ltd.
It remains unclear whether Ongpin and Ashmore are connected to Trans Digital Excel, Inc., the creditor-turned-shareholder of Extelcom which had settled the cellular firm’s financial obligations with National Telecommunications Commission.
Trans Digital, a Filipino-owned company composed of institutional investors, had said San Miguel might buy it out to be able to enter Extelcom.
The move however is being challenged by Marifil Holdings in what it claims to be an "illegal dilution" of its stake in the debt-ridden telecommunication firm. It had described Trans Digital as a "vulture investor."
Since San Miguel announced plans to venture outside its core food and beverage businesses two years ago, it has been aggressively buying into major companies, which include Bank of Commerce, Manila Electric Co. and Petron Corp.
Also yesterday, the conglomerate disclosed that unit San Miguel Yamamura Packaging International Ltd. now has a 65 percent stake in Australian packaging firm Cospak Group, which San Miguel intends to use as a vehicle for its Australasian and export businesses.
San Miguel Yamamura bought 60.7 million shares of a stockholder of JHK Investments Pty Ltd., the parent of the Cospak Group, for A$34.65 million.
It likewise subscribed to 12.26 million more shares in JHK Investments for A$5 million.
The San Miguel group has been supplying packaging products to the Cospak Group since the early 1980s.
A shares of San Miguel, which are exclusive to locals, did not move at P68.50 apiece, while its B shares climbed by 0.73 percent to P68.50 apiece. — Kristine Jane R. Liu, BusinessWorld
