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By Zinnia Dela Peña
The Philippine Star
Food and beverage giant San Miguel Corp. (SMC) declared an aadditional 35 centavos cash dividend per share to all shareholders as of Dec. 29, 2005.
This brings to 70 centavos the total cash dividends declared by SMC for the year. In a disclosure to the Philippine Stock Exchange, SMC said the dividends are payable on Jan. 30, 2006.
San Miguel Makes Takeover Bid For Singapore's Del Monte
(MORE TO FOLLOW) Dow Jones Newswires
December 02, 2005 03:39 ET
San Miguel Offers 38.62 US Cts Per Del Monte Share
(MORE TO FOLLOW) Dow Jones Newswires
December 02, 2005 03:40 ET
San Miguel Makes Takeover Bid For Singapore's Del Monte
SINGAPORE (Dow Jones)--NutriAsia Pacific Ltd., a company which has Philippine food giant San Miguel Corp. (SMCB.PH) among its shareholders, Friday offered to buy shares in Singapore-listed Del Monte Pacific Ltd. (D03.SG) that it didn't already own for 38.62 U.S. cents a share.
The offer, which values Del Monte Pacific around US$415 million, is aimed at helping San Miguel and NutriAsia grow their food and beverage businesses as well as boosting their international reach, said PricewaterhouseCoopers, which is acting on behalf of NutriAsia.
(MORE TO FOLLOW) Dow Jones Newswires
December 02, 2005 04:00 ET
Copyright (c) 2005 Dow Jones & Company, Inc.
In a move that will enable continued growth of their core food & beverage business and further their inernational exposure, San Miguel Corporation (SMC) and NutriAsia, Inc (NutriAsia), majority owned bythe family of Joselito D. Campos, Jr., confirmed today that they have formed a joint venture company to acquire Del Monte Pacific, Ltd. (DMPL).
DMPL owns Del Monte brand rights for the Philippines and the Indian sub-continent. The company also has long-term contracts to supply canned pineapple, juice and mixed tropical frutis to North America, Europe andthe Far East.
Beverages comprise 27% of DMPL's total revenues, with 67% coming from processed food and 5% from non-processed food for the year ended December 2004.
The DMPL portfolio includes canned fruits, a variety of tomato-based sauces, fruit salad cream, pasta, condiments, juice drinks and concentrates, and one of the world's largest and most efficient pineapple plantations. In the Philippines, products are sold under the Del Monte and Today's brands. DMPL has strong market postion in the Philippines with over 85% market share in pineapple solids and about 80% in mixed fruits and tomato sauce.
NutriAsia, Inc. produces tomato and banana-based ketchup and other food products.
The acquisition of DMPL by SMC and NutriAsia will initially consist os shares from the Cirio Group and MCI, Inc. The acquisition of the combined stake triggers a mandatory general offer all shares in DMPL. The total value is estimated to be US$420 million.
Under a joint venture agreement between SMC and NutriAsia, NutriAsia will own 58% of the joint venture company, with San Miguel owning the remaining 42%. The joint venture company wil take out a loan from a bank consortium composed of Hong Kong Shanghai Banking Corporation Limited, Development Bank of the Philippines, and BDO Capital and Investment Corporation, to complete funding of the entire transaction. HSBC acted as adviser to the acquisition financing.
The transaction brings to both SMC and NutriAsia, products enjoying leadership positions in pineapple juice and solids, juice drinks, tomota-based ketchup and sauces, and other condiments. Branded food products represent 50% of DMPL sales. It provides strong complementation to the Campos Group's existing condiments and sauce business.
Joselito D. Campos Jr. said, "This is an exciting opportunity to continue to build great brands. Together with San Miguel Corporation, we will continue the exceptional growth of the brand and further strengthen DMPL's geographical reach.
Eduardo M. Cojuangco, Jr. Chairman and Chief Executive Officer of San Miguel Corporation said: "We are impressed with the success the DMPL team has achieved. Our business share a passion for quality products in food and beverages, so this is a very natural fit."
"Our partnership in NutriAsia will aid us in the development of our future strategic marketing efforts as we continue to offer together brands from DMPL, San Miguel and NutriAsia portfolios which then gives us an excellent platform for growth and value creation for both partners," stated Cojuangco.
Erik dela Cruz
FOOD and beverage conglomerate San Miguel Corp said its packaging subsidiary in Malaysia, San Miguel Plastic Films Sdn Bhd, posted double-digit growth in sales revenue in the 10 months to October.
In a statement, San Miguel said the Malaysian firm registered sales revenue of 51.07 million ringgit for the 10-month period, up 16 percent from 43.9 million in the same period last year. No further details were given.
San Miguel Plastic Films is one of the four facilities acquired by San Miguel from Guolene Packaging Industries Bhd last January.
San Miguel has said it hopes to become a major regional player not only in the food and beverage business but also in packaging.
(1 dollar = 3.77 ringgit, 53.584 pesos)
By Honey Madrilejos-Reyes
The Business Mirror
A UNIT of San Miguel Corp. (SMC) has filed a case with the Pasig City Regional Trial Court to oblige the Concepcion-owned Swift Foods Inc. to pay over P126-million worth of assorted broiler feeds.
In a complaint filed last December 16, San Miguel Foods Inc. (SMFI) disclosed that Swift had paid only P69 million out of the P188 million it owed to the company. Accounting for interest payments, according to SMFI, Swift's total obligations had already reached P126 million as of end October last year.
The BusinessMirror tried to reach Swift for a comment but no official was available as of press time.
Based on court records, SMFI entered into a deal with Swift in September 2004 for the supply and delivery of broiler feeds to the latter.
SMFI gave Swift a one-month credit limit. Swift, on the other hand, agreed to cover for the "cost of money" at the rate of 1.5 percent a month for any unpaid amount in excess of its credit limit.
Between September 2004 and February 2005, SMFI delivered P188 million worth of broiler feeds to Swift's manufacturing plants in Bulacan, Isabela, Cagayan de Oro, Cebu, General Santos and Zamboanga.
The biggest bulk went to Bulacan, where P87-million worth of feeds were delivered, followed by Cagayan de Oro, P54 million; Cebu , P28 million; Isabela, P15 million; General Santos, P1.8 million; and Zamboanga, P234,000.
Swift covered for only P69 million out of P189-million worth of feeds that SMFI delivered.
"In gross and wanton violation of its obligations, [Swift] has failed and refused, despite repeated demands, to pay the total amount P126 million," SMFI said in its complaint.
The company added, "By way of example and correction for the public good to serve as a deterrent and warning to others who may be inclined to commit the same unlawful and pernicious acts, (Swift) should be made to pay the exemplary damages in such amount as the court may deem just and equitable but not less than P100,000."
SMFI and Swift are among the five companies engaged in the country's broiler industry (chicken business). The other players are Vitarich Corp., Universal Robina Corp. and Tyson Agro Ventures Inc. These companies currently supply around 80 percent of the country's total demand.
San Miguel, Goldman Lead Firms Borrowing for Asian Acquisitions
2006-01-19 13:16 (New York)
By Denise Kee and Patricia Kuo
Jan. 20 (Bloomberg) -- San Miguel Corp., the largest
Philippine food company, and Goldman Sachs Group Inc. led firms
this week seeking $1.6 billion of loans for acquisitions as
economic growth in the region spurs firms to borrow to expand.
Companies in Asia got a record $36.4 billion of loans for
acquisitions last year, three times the amount they raised in
2004, according to data compiled by Bloomberg. Manila-based San
Miguel wants $250 million to buy Del Monte Pacific Ltd. Goldman
Sachs is seeking $337 million to buy properties in Singapore.
Asia's economy outside of Japan will probably grow 6.9
percent this year, outpacing the 4.3 percent for global growth,
according to International Monetary Fund forecasts. The value of
Asian mergers and acquisitions reached $347 billion last year,
almost a quarter more than 2004 and the most in the last five
years, Bloomberg data show.
``I see many more loan transactions for acquisitions
happening this year,'' Anup Kuruvilla, ABN Amro Holding NV's head
of Asia loan syndication, said in an interview. ``We have a few
loan proposals out there, we are actively talking to borrowers in
Asia for such opportunities to lend.''
San Miguel is buying Singapore-based Del Monte Pacific in a
deal that values the world's biggest pineapple canner at $420
million. San Miguel has spent $3.6 billion since 2000 on
acquisitions as it tries to broaden its product line and boost
Del Monte Pacific owns the Del Monte trademark in the
Philippines and the right to produce and market Del Monte
products in the Indian subcontinent, a market where San Miguel
has no presence.
HSBC Holdings Plc, the Development Bank of Philippines and
Banco De Oro Universal Bank are arranging the loan, which has an
interest margin of 2 percentage points over the London interbank
offered rate, a banker involved in the deal said.
Three-month dollar Libor, an average of rates set daily by
banks and used as a borrowing benchmark, is 4.61 percent.
San Miguel is buying Del Monte Pacific in a joint venture
with NutriAsia Inc., a Philippine ketchup and sauce maker.
Goldman Sachs, the world's third-largest securities firm, is
borrowing S$548 million ($337.2 million) to fund its real-estate
fund's purchase of two buildings in Singapore.
DBS, Singapore's biggest bank, sold the buildings in the
central business district in December. It will lease 65 percent
of the office space from Goldman Sachs for eight years, a banker
in the deal said.
Goldman Sachs hired Standard Chartered Plc this week to
arrange the five-year loan, which has an interest margin of 0.7
percentage point over the Singapore dollar swap-offer rate, a
benchmark for borrowing costs.
Thai Union Frozen
Thai Union Frozen Products Pcl, the world's second-biggest
tuna canner, hired Calyon to arrange its first syndicated loan, a
five-year, $150 million credit it will use to boost working
capital, a banker involved in the deal said.
Bangkok-based Thai Union and other Thai seafood exporters
have increased shipments of tuna and shrimp to the U.S., Japan
and other markets, according to the Thai commerce ministry.
Exports of frozen seafood rose 39 percent in August to $429
million, according to the ministry's data.
In Taiwan, Far Eastern Textile Ltd., the island's largest
fabrics company, is seeking $128.5 million of loans to expand in
China, the island's biggest export market, a banker said.
Export-Import Bank of China is seeking at least $200 million
to support export trade financing and overseas investment by
Chinese companies, said people involved in the deal.
Shun Tak Holdings Ltd., the Hong Kong ferry services
provider and property company controlled by casino tycoon Stanley
Ho, is seeking a HK$4 billion ($516 million) syndicated loan for
real-estate projects in Macau, China, Hong Kong's Standard
newspaper reported Jan. 18, citing unidentified people.
Buyout firms have also stepped up acquisitions in the
region, purchasing $12 billion assets last year, an 18 percent
increase from 2004, according to the Center for Asia Private
Equity Research Ltd. in Hong Kong.
Buyout firms typically fund two thirds of each acquisition
with loans and aim to sell out within five years, either to
another company or to investors through a share sale. The debt
gets taken on by the company being bought, using its own cash
flow to repay lenders.
Credit Suisse Group announced this week that it will expand
its Asia Pacific leveraged finance team this year to cater for
the growth of buyout firms' leveraged financing. The bank will
add three bankers in Australia, Hong Kong and Japan, according to
a press release on Jan. 18.
SAN MIGUEL Corp said it is exploring various options for raising funds for present needs and to pay for future acquisitions, but that it has not decided on what options to take.
The food and beverage conglomerate said so in a disclosure to the stock exchange made in response to a newspaper report that said the company plans to sell global bonds worth 500 million dollars.
The Philippine Daily Inquirer reported that the proceeds of the issue will be used for debt refinancing and expansion. Credit Suisse First Boston, HSBC and Deutsche Bank are expected to get the underwriting deal, the newspaper said.
SAN Miguel Corp., the Philippines 's largest food and beverage conglomerate, is now ready to pay some of its creditors-many of them-with shares of stock.
In a disclosure statement dated January 27, 2006, SMC informed the Philippine Stock Exchange that the debt-equity swap will be accommodated in the newly restructured capital stock.
SMC also told regulators that it is implementing the new composition of its capital stock allocating 40 percent of its 4.5 billion shares for sale or issuance to foreign investors.
The Securities and Exchange Commission has approved the reclassification of some of the common shares to reflect the new 60-40 percent ratio between common A and B shares.
Prior to the reclassification, 3.15 billion or 70 percent of SMC's 4.5 billion authorized capital stock were common A shares and 1.35 billion were common B shares.
Last year, the SMC board passed a resolution reclassifying 450 million of its 3.15 billion common A shares as common B shares, thus increasing the number of B shares to 1.8 billion from 1.35 billion.
The reclassification reduced the number of common A shares to 2.7 billion, of which 1,909,123,209 shares are outstanding. Of the 1.8 billion common B shares, 1,225,643,183 shares are outstanding.
Deducting these from the authorized capital stock, SMC still has 790,876,791 unissued common A shares and 574,356,817 unissued common B shares. These are the shares that SMC can tap to pay its long-term debts, as indicated in a filing submitted to PSE and the SEC.
The reclassification was approved by the company's stockholders in their annual meeting held on May 17, 2005.
In its definitive statement, copies of which were sent to stockholders in connection with the annual stockholders' meeting last year, SMC said its stockholders also ratified the proposed amendment to the company's Articles of Incorporation to reflect the new composition of its authorized capital stock.
SMC said the stockholders also approved the provision in its charter that "there shall be no preemptive rights on the issuance of shares relating to equity-linked debt or other securities, any class of preferred shares, shares in payment of previously contracted debt or shares issued in exchange for property needed for corporate purposes."
Without preemptive right to the issuance of new shares, the existing stockholders may end up with diluted holdings. In the case of the government-held shares, the dilution could result in the loss of a board seat.
Last year, the government-sequestered shares in SMC, equivalent to 25.46 percent consisting of 445,759,294 common A shares and 297,443,348 common B shares, enabled the government to elect four on the 15-man board.
Aside from the government and SMC chairman Eduardo Cojuangco Jr., who holds the equivalent of 19 percent, the other big stockholders include Kirin Brewery Ltd. of Japan with 628,640,175 common B shares or 20.015 percent; and SM Investments Corp. of businessman Henry Sy Sr., with 339,349,120 common A shares or 10.804 percent.
The Social Security System and the Government Service Insurance System combine for the equivalent of about 12 percent.
SMC did not indicate which of their long-term unpaid debts were to be swapped with shares. It also did not say if it would resort to a share swap in taking over foreign companies.
Based on its unaudited quarterly report, the company had long-term debts amounting to P39.389 billion, P7.539 billion of which were current last year.
SMC reported that as of end-September 2005, it had total current liabilities of P133.115 billion, up from P63.834 billion in 2004. Emeterio Sd Perez
SAN MIGUEL Corp will list on Tuesday a total of 58,795 shares, the stock exchange said.
These comprise 48,022 A shares and 10,773 B shares, which have been availed of and fully paid for under the company's long-term incentive plan for employees.
by: Cai U. Ordinario
The Manila Times
THE poultry division of the food and beverage giant San Miguel Corp. sustained its performance in 2005 on increased operational efficiencies and improved export performance.
The poultry business contributes about a quarter of revenues to the San Miguel Food Group.
The division reported revenues of P15.8 billion, up by 7 percent from last year. The division also increased its sales volumes by 4 percent in 2005.
The increase in the poultry division’s revenues was mainly due to the installation of enhanced technologies in chicken farming, such as the climate-controlled system, which regulates the temperature and humidity in the farms. This improved its operating income for the period.
While export remains a small contributor to poultry division’s revenues, its export volumes and revenues grew by 37 percent and 61 percent respectively, year on year.
This is mainly due to its exports to Japan. But San Miguel plans to develop other export markets such as the Middle East for poultry.
Meanwhile, the Magnolia Chicken Stations, which were put up in major supermarkets nationwide last year, have gained ground among supermarket consumers and are also making their way into the wet markets.
There are 77 Magnolia Chicken Station outlets as of end-2005 and 115 stalls for dressed chickens in Metro Manila and Luzon.
San Miguel seen reporting weak earnings
Posted: 4:16 PM | Feb. 21, 2006
FOOD and beverage conglomerate San Miguel Corp. is expected to report on Thursday weaker earnings for the past year owing to higher operating costs, particularly increased financing charges following its debt-funded acquisitions, analysts said.
They said the results would also reflect the impact of poor operating performance of the Coca-Cola beverage group and hard liquor unit Ginebra San Miguel Inc.
Analysts said the beer and food divisions were still the major growth drivers for San Miguel last year, keeping net profit above 7 billion pesos but lower than the previous year's 8.08 billion.
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