San Miguel eyes investment in RI

Dow Jones, Manila

San Miguel Corp., the Philippines' largest food and beverage conglomerate, on Friday said it is studying investment opportunities in Indonesia as part of its expansion program.

The company didn't provide details, saying it will make the appropriate disclosure after a more definite agreement is reached.

San Miguel issued the disclosure to the stock exchange to clarify a report in the Philippine Star Friday that cited the company's chairman Eduardo Cojuangco as saying the food and drink group is in talks with two to three firms in Indonesia as part of its planned expansion program in that country within the year.

Cojuangco said in the report that San Miguel is still studying whether it will form a new company or buy existing Indonesia- based companies.

Earlier this month, San Miguel completed the US$35.5-million acquisition of a Vietnam-based pig farming and feed milling concern.

San Miguel also signed an agreement in October to purchase the wholly-owned unit of Taiwan Tea Corp., TTCV Investment (BVI) Co.

The purchase effectively gave San Miguel ownership of TTC (Vietnam) Co., which is engaged in pig farming and feed milling in Vietnam.

TTCV Investment is San Miguel's first acquisition of a food business in Vietnam.

Earlier this year, San Miguel announced plans to boost sales by expanding its presence in Asia through various means, including the acquisition of existing companies in Thailand, Indonesia, Malaysia, Cambodia, Australia, China, and Vietnam.

San Miguel has earmarked $500 million for the expansion.