Philippine food and beverage conglomerate San Miguel Corp. reports it has yet to finalize any agreement on the entry of a new investor in the company.
“No agreement has been reached,” said San Miguel…
Philippine food and beverage conglomerate San Miguel Corp. reports it has yet to finalize any agreement on the entry of a new investor in the company. “No agreement has been reached,” said San Miguel in a disclosure to the stock exchange, adding that details of a possible agreement, such as the total number of San Miguel shares to be sold and their selling price, are still being discussed. Last month, San Miguel said it was in talks with several beer brewers in Asia in its search for a strategic partner that would provide fresh capital for expansion. The conglomerate did not give financial details in its statement, but a report in the “Philippine Daily Inquirer“ newspaper said San Miguel expects to raise US$ 430 million to US$ 650 million through the sale of treasury shares to a strategic investor. The shares are equivalent to a 10% stake in San Miguel. A government agency, the Presidential Commission on Good Government (PCGG), has warned it will block any effort to sell San Miguel shares as it could dilute its interest in the company. The PCGG was formed in 1986 to recover the wealth of former president Ferdinand Marcos and his associates, including San Miguel Chairman Eduardo Cojuangco. The PCGG seized a 47% stake in San Miguel in the late 1980s on suspicion it was allegedly acquired by Cojuangco“s group using funds intended for the development of the coconut industry. Cojuangco has vigorously disputed that and said the funds came from private sources.