Philippines’ San Miguel says it seeks overseas acquisitions to boost profits

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5TA8A991UMThe Philippines’ most diversified conglomerate San Miguel Corp is on the lookout for profitable energy, food and airline companies abroad that it can acquire to help boost its cash flow and profits, its senior executive said.

“Oil and gas is our priority,” San Miguel President and Chief Operating Officer Ramon Ang told reporters on September 15. “A good investment is a company with stable cash flow and consistent profit,” he added.

Ang said the conglomerate is also interested in buying into a U.S. or Japanese airline, but declined to give details.

April Lee-Tan, Vice-President and Head of Research Department at COL Financial Group Inc in Manila, said acquiring established companies overseas would help alleviate concerns about San Miguel’s liquidity.

“It would also provide some diversification and at least the focus would be on cash flow generating companies,” said Lee-Tan.

The 124-year old conglomerate, as of end-June, had 787.7 billion pesos ($17.91 billion) in total liabilities while total assets stood at 1.2 trillion pesos.
San Miguel has said it is planning a solo bid for British snacks maker United Biscuits, owner of brands such as Jaffa Cakes and Twiglets.

Locally, San Miguel plans to bid for a number of infrastructure projects under the Philippines’ public-private partnership scheme, Ang said.

Last week, San Miguel signed a deal to sell its 49 per cent stake in Philippine Airlines back the Lucio Tan group, in a transaction worth around $1 billion.

 

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Reading Time: 1 minute

The Philippines’ most diversified conglomerate San Miguel Corp is on the lookout for profitable energy, food and airline companies abroad that it can acquire to help boost its cash flow and profits, its senior executive said.

Reading Time: 1 minute

5TA8A991UMThe Philippines’ most diversified conglomerate San Miguel Corp is on the lookout for profitable energy, food and airline companies abroad that it can acquire to help boost its cash flow and profits, its senior executive said.

“Oil and gas is our priority,” San Miguel President and Chief Operating Officer Ramon Ang told reporters on September 15. “A good investment is a company with stable cash flow and consistent profit,” he added.

Ang said the conglomerate is also interested in buying into a U.S. or Japanese airline, but declined to give details.

April Lee-Tan, Vice-President and Head of Research Department at COL Financial Group Inc in Manila, said acquiring established companies overseas would help alleviate concerns about San Miguel’s liquidity.

“It would also provide some diversification and at least the focus would be on cash flow generating companies,” said Lee-Tan.

The 124-year old conglomerate, as of end-June, had 787.7 billion pesos ($17.91 billion) in total liabilities while total assets stood at 1.2 trillion pesos.
San Miguel has said it is planning a solo bid for British snacks maker United Biscuits, owner of brands such as Jaffa Cakes and Twiglets.

Locally, San Miguel plans to bid for a number of infrastructure projects under the Philippines’ public-private partnership scheme, Ang said.

Last week, San Miguel signed a deal to sell its 49 per cent stake in Philippine Airlines back the Lucio Tan group, in a transaction worth around $1 billion.

 

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