MANILA, March 12 (Reuters) - Philippine food-to-power conglomerate San Miguel Corp is willing to unload its entire 27 percent stake in Manila Electric Co (Meralco) at the 'right price,' its chairman said on Friday.
'Everything we have, at the right price, can be bought,' Eduardo Cojuangco Jr, chairman of San Miguel, told reporters, when asked about the company's plans for its Meralco stake.
'I think that's a fair statement, at the right price, we're willing to listen,' added Cojuangco, without giving further details.
Together with its allies, San Miguel owns about 43 percent of top power distributor Meralco, and is the largest shareholder group.
Cojuangco's comments come after Metro Pacific Investments Corp and its sister firm, Pilipino Telephone Corp (Piltel) announced last month that they would merge their stakes in Meralco, with the consolidated ownership expected to increase to 41.3 percent after the purchase of more shares, the second biggest shareholding group.
It is unclear what would prompt San Miguel, apart from an attractive price offer, to unload its Meralco stake when it is aggressively diversifying out of its core food and drinks business and into heavy industry such as power, infrastructure, telecommunications and mining to speed up future growth.
Last week San Miguel President Ramon Ang said the company is planning to build a 150-300 megawatt coal-fired plant in southern Philippines at a cost of up to $300 million.
San Miguel was also in discussion to acquire a majority interest in a major mass railway transit project in the capital Manila.
San Miguel's food arm announced on Friday a plan to raise about 5 billion pesos ($110 million) from the sale of new shares through either a public offer, private placement or a combination of both.
Shareholders of San Miguel Pure Foods Co Inc approved the issuance of 75 million new common shares to its parent firm and or third parties.
'Proceeds will be used to pay debt, including the acquisition of the Vietnam business and the intellectual rights,' said Francisco Alejo, president of San Miguel Pure Foods.
($1 = 45.66 pesos)
(Reporting by Manolo Serapio Jr.; Editing by Muralikumar Anantharaman)
((manolo.serapio@thomsonreuters.com; +632 841 8936; Reuters Messaging: manolo.serapio.reuters.com@reuters.net)) Keywords: SANMIGUEL/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Everything we have, at the right price, can be bought,' Eduardo Cojuangco Jr, chairman of San Miguel, told reporters, when asked about the company's plans for its Meralco stake.
'I think that's a fair statement, at the right price, we're willing to listen,' added Cojuangco, without giving further details.
Together with its allies, San Miguel owns about 43 percent of top power distributor Meralco, and is the largest shareholder group.
Cojuangco's comments come after Metro Pacific Investments Corp and its sister firm, Pilipino Telephone Corp (Piltel) announced last month that they would merge their stakes in Meralco, with the consolidated ownership expected to increase to 41.3 percent after the purchase of more shares, the second biggest shareholding group.
It is unclear what would prompt San Miguel, apart from an attractive price offer, to unload its Meralco stake when it is aggressively diversifying out of its core food and drinks business and into heavy industry such as power, infrastructure, telecommunications and mining to speed up future growth.
Last week San Miguel President Ramon Ang said the company is planning to build a 150-300 megawatt coal-fired plant in southern Philippines at a cost of up to $300 million.
San Miguel was also in discussion to acquire a majority interest in a major mass railway transit project in the capital Manila.
San Miguel's food arm announced on Friday a plan to raise about 5 billion pesos ($110 million) from the sale of new shares through either a public offer, private placement or a combination of both.
Shareholders of San Miguel Pure Foods Co Inc approved the issuance of 75 million new common shares to its parent firm and or third parties.
'Proceeds will be used to pay debt, including the acquisition of the Vietnam business and the intellectual rights,' said Francisco Alejo, president of San Miguel Pure Foods.
($1 = 45.66 pesos)
(Reporting by Manolo Serapio Jr.; Editing by Muralikumar Anantharaman)
((manolo.serapio@thomsonreuters.com; +632 841 8936; Reuters Messaging: manolo.serapio.reuters.com@reuters.net)) Keywords: SANMIGUEL/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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