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Wednesday, July 10, 2013

Hey Ramon Ang: "What's your real strategy for San Miguel?"

What is really the strategy of San Miguel under Ramon S. Ang?

High Stakes"Buy N Sell"?
Cojuangco and Ang have  been on an incredible international buying and shopping spree. It's one for Ripley's Believe It or Not!
What are the strategic reasons for this approach?

Coca Cola
  • By the end of 1998, shuffling assets to find the ideal portfolio and looking to restructure operations and focus on core competencies, Cojuangco sold San Miguel's stake in Coca-Cola Beverages, Coca-Cola Amatil’s bottler in Europe.
  • In February 2001, San Miguel once again regained control of Coca-Cola Bottlers Philippines, Inc. 
  • In 2006, San Miguel has sold its 65% stake at its Coca-Cola Philippine venture (including its subsidiaries Cosmos Bottling and Philippine Beverage Partners) to The Coca-Cola Company (TCCC) for $590 million. From Wikipedia

  • In 2004,it bought 51 percent of Berri Ltd., Australia's top juicemaker, for $97.9 million.
  • In 2005, the company made its biggest overseas acquisition with the takeover of National Foods Ltd., Australia's largest publicly traded dairy, which it bought for P80.38 billion. 
  • In 2005, San Miguel merged National Foods' operation with Berri.
  • In November 2007, SMC also sold National Foods to Kirin for ¥294 billion. From Wikipedia

  • San Miguel's first major acquisition under Cojuangco and Ang was Australian boutique brewer J. Boag and Son for A$96 million in 2000.
  • In November 2007, SMC sold Boag's to Lion Nathan for A$325 million. From Wikipedia

  • In 2005, San Miguel completed its $420-million purchase of Singapore-based Del Monte Pacific Ltd., the region's largest pineapple canner.From Wikipedia
  • In 2007,  San Miguel sold its entire stake in joint venture company NutriAsia San Miguel Holdings Ltd. to the NutriAsia Group. NutriAsia San Miguel Holdings Ltd. owns 100% of NutriAsia Pacific Ltd. which in turn owns 84.5% of Del Monte Pacific, Ltd. (DMPL).
  • In rapid succession beginning late 2008, SMC bought up shares in power retailer Meralco, paid up for the option to own oil refiner Petron, and acquired a majority stake in Liberty Holdings, a Filipino telco co-owned by Qatar Telecom. From Wikipedia
  • In an interview with CNBC’s Christine Tan at segment “Managing Asia” (which ran last weekend), San Miguel Corp. president Ramon S. Ang, or RSA, affirmed that the conglomerate was working on a prospective big investment in oil and gas field outside the Philippines. To fund such a large investment, apart from the prospective sale of SMC’s stake in Manila Electric Co., Ang said SMC could pare down interest in food unit San Miguel Purefoods Inc. and list its packaging and power generation businesses. From these transactions alone, he said SMC could immediately raise $5 to $6 billion to fund new ventures.“A lot of international manufacturers are courting us,” RSA said.
  • In 2009, Japanese brewing giant Kirin Holdings Co. Ltd. sealed a deal with San Miguel Corp. for the purchase of a 43.25-percent stake in the latter's flagship domestic brewery firm for P58.9 billion and the possible takeover of San Miguel's international beer operations.
  • In 2010, chairman and chief executive officer Eduardo Cojuangco Jr., told the BusinessMirror that he was open to selling SMC’s 51% stake in San Miguel Brewery “at the right price.” The statements were made in reaction to comments by Kirin, Japan’s largest beer company and owner of 48% of San Miguel Brewery, which said earlier this month that it would like to take a majority position in the local brewer if the parent firm is willing.
  • In 2013, RSA said: “I think it’s one business that we should keep as a souvenir.” When Tan thus teased him about being “sentimental,” RSA explained only a “super-deal”—an extremely attractive investment that would require a hefty $20 billion in investment—would make him consider selling beer.—Doris C. Dumlao (Inquirer)
"The International Monetary Fund has warned the Philippine government that the economy faces a risk that a “highly-leveraged conglomerate”, or one part of it, would default on its “foreign obligations and/or domestic loans”. " from the Manila Times