San Miguel says confident investors will buy stake in food unit
MANILA, Sept 12 (Reuters) - San Miguel Corp said on
Wednesday it was confident of attracting investors to buy up to
a $2.7 billion stake in its food and beverage unit, the
Philippines' biggest secondary share offering.
The sale of up to 1.02 billion shares in San Miguel Food and
Beverage Inc is part of the parent firm's asset
restructuring plan announced last year.
The feedback from investor roadshows in Asia, Europe and the
United States has been positive, San Miguel Corp President Ramon
Ang said after the subsidiary's shareholder meeting in Manila.
"Investors want a stable company with stable cash flow, with
big market shares in the food and beverage category," Ang told
"We are confident we can place out the shares" despite
recent volatility in the Philippines' equities market, he added.
Philippine shares fell for a sixth straight session on
Wednesday as investors worried over U.S.-China trade tensions.
Manila's main index is down more than 12 percent this
year, the worst-performing bourse in Southeast Asia.
San Miguel Food and Beverage has set a date of Oct. 23-29
for the share sale, pending regulatory approval. Final pricing
is set for Oct. 19.
San Miguel intends to use fresh capital from the share sale
for infrastructure projects, including a proposed $15 billion
airport complex north of the capital Manila.
"The priority is that funds that will be raised by San
Miguel will be used for investments in the Philippines," Ang
(Reporting by Neil Jerome Morales; writing by Enrico dela Cruz;
editing by Darren Schuettler)
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.