Philippines' San Miguel to go on Asian investment spree

Philippines' San Miguel to go on Asian investment spree

Agence France-Presse Manila

Philippine food and beverage giant San Miguel Corp. is to launch an investment spree in Asia, company chairman Eduardo Cojuangco said.

It is also finalizing the acquisition of two terminals of a major port operator in the Philippines, he told reporters late Thursday.

The investment drive would be launched in January covering China, Indonesia, Thailand, Malaysia, Vietnam, Cambodia and Australia.

"We have definite plans for each (country). We see (investments) in these countries will help our operations overall, including beer. So there will be synergies," he said.

He did not provide details of the investments but said they would be spread over seven years and would be financed through cash reserves and debt.

San Miguel had earlier said it was planning to invest in a brewery in Taiwan. It already has breweries in China and Australia.

San Miguel is the Philippines' leading food and beverage firm with beer operations in China, Vietnam, Indonesia and Australia. It also has food businesses in Indonesia.

Cojuangco however said he had "no illusions" about entering the European and U.S. markets.

On the planned acquisition of local company Asian Terminals Inc.'s two cargo terminals, he said: "In principle, it's almost finished."

The Mariveles grain terminal in Bataan provinces west of Manila and the port of Batangas to the south would be bought for 2.15 billion pesos (US$40.6 million), Cojuangco said.

"They're just fixing the details, the nitty-gritty," he said.

The acquisition is aimed at expanding San Miguel's logistics network to facilitate shipments of its products.

Asked about prospects for San Miguel next year, Cojuangco said "we will do better next year than this year but things will be harder."

The company is projecting a full-year net profit of about seven billion pesos this year.