San Miguel Corp. (SMC) to invest $500M in plane leasing firm

San Miguel Corporation update from Inquirer Business.
Update made by Miguel R. Camus of the Philippine Daily Inquirer.

MANILA, Philippines—Conglomerate San Miguel Corp. plans to invest $500 million in an aircraft-leasing company to support the expansion of Philippine Airlines, SMC president Ramon S. Ang said on Tuesday.
Ang said the investment would be a followup to the initial $500 million that the company had put in the airline, allowing it to own roughly half of the flag carrier. Philippine Airlines’ second major shareholder is the group of tycoon Lucio Tan, who earlier said he was selling his remaining 51-percent stake although a deal has yet to be finalized.
“We intend to come up with another $500-million equity for the aircraft-leasing company that will be 100-percent owned by PAL,” Ang said at the sidelines of the relaunching of the airline’s Manila-to-London route.
Set for Nov. 4, the transcontinental flight will mark PAL’s return to Europe after 15 years of absence. Ang said PAL will fly five times a week to London Heathrow Airport, the main air gateway to the United Kingdom.
Ang also said that PAL was ordering more planes than previously announced.
He said the airline was looking to acquire 71 new aircraft—21 long-range Airbus A330s, 44  medium-range Airbus A321s and six long-range Airbus A340s—over the next five years. The company earlier said it would acquire 65 Airbus aircraft, valued at about $9.5 billion, but that figure did not include the A340s.
After London, Ang said they plan to mount more flights to European cities like Paris, Rome and Italy within the year. Also on the pipeline will be expanded flights to the United States in the event the Philippines finally obtains the coveted upgrade to Category 1 from the US Federal Aviation Administration.
Competition is expected to be tough as carriers based in the Middle East are also expanding aggressively.
“We are expecting them to react. In fact, one lowered the price of their tickets already. But we foresaw that and we are definitely here to stay and we will compete with them,” Ang said.

Source: Philippine Daily Inquirer
Photo credits: flylink

Conglomerate San Miguel Corporation supports the expansion of Philippine Airlines (PAL). This is another move of SMC President Ramon S. Ang to go transcontinental flights.

Over the next five years PAL will acquire more new aircrafts. Within the year PAL will have more flights to European cities.

Expecting competition to be tough as other carriers are also expanding. The good thing with competition, ticket prices will go down.

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San Miguel's Global Power Holdings Corporation arm shelves IPO

Sual Power Plant

The country’s biggest power producer SMC Global Power Holdings Corporation is expanding its operation for two new power facilities in southern Davao province and northern Bataan province.

Corporate news from the Business World Online.
"San Miguel’s power arm shelves IPO"

CONGLOMERATE San Miguel Corp.’s power generation arm has shelved a planned initial public offer (IPO) and will instead raise $700 million from the debt market for expansion, senior company officials said yesterday.

SMC Global Power Holdings Corp., the country’s biggest power producer, accounting for about a fifth of the Philippines’ total supply, is seeking funding for two new power facilities with a combined generation capacity of 600 megawatts (MW).

“It’s easier to raise money through borrowing,” said Ferdinand K. Constantino, San Miguel’s chief financial officer, in an interview at the conglomerate’s headquarters.

Volatility in financial markets, with the local stock market nearly erasing this year’s gains before recovering in recent days to climb about 7% this year has made it difficult for SMC Global to pursue its planned share sale.

San Miguel President Ramon S. Ang said the group was unlikely to go to the equity market for any fund raising for the rest of the year, adding a plan to sell more shares in San Miguel Pure Foods Co., Inc. was possible next year.

BUILDING CAPACITY
San Miguel was previously looking to raise as much as $700 million from a planned listing of SMC Global, which the group values at about $1.1 billion, before the end of this year.

SMC Global will build two 300-MW coal-fed plants in southern Davao province and northern Bataan province, with total project cost of $1.1 billion to $1.2 billion, Mr. Constantino said.
About 30% of funding for the projects will come from equity and the balance from debt, he said, without giving further details.

The two projects will increase SMC Global’s total installed capacity to 3,145 MW and are part of its long-term plan to boost capacity by an additional 3,000 MW.

San Miguel, which owns 27% of Manila Electric Co. (Meralco) has no immediate plans of selling more shares in the country’s biggest power utility, Mr. Ang said further.

In July, San Miguel sold a 5.7% stake in Meralco, raising $400 million for expansion plans.

Source: bworldonline

Ilijan Power Plant

Photo credits: sanmiguel

Are you looking forward to the IPO of SMC Global Power Holdings Corporation?
It's great to be part of this growing power corporation of San Miguel.


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Bo Sanchez "TrulyRichClub" Member

Philippine Conglomerate San Miguel Corporation plans to sell another 25% of Pure Foods

Breaking news from GMA News Online.
Philippines conglomerate San Miguel Corporation is planning to sell up to a quarter of the outstanding shares of its food unit San Miguel Pure Foods Co. Inc.

Source: GMANetwork
By ROSEMARIE FRANCISCO, Reuters September 12, 2013

Philippine conglomerate San Miguel Corp. is planning to sell up to a quarter of the outstanding shares of its food unit next year in a follow-on offer to raise funds for the group's expansion, company officials said on Wednesday. President Ramon Ang and chief financial officer Ferdinand Constantino told Reuters that San Miguel Pure Foods Co. Inc. was expected to end 2013 with double-digit revenue growth, up from 4 percent growth in the first half, boosted by the strength of the economy. Higher revenues should help San Miguel to sell an additional 25 percent stake in Pure Foods at a premium to market prices, Constantino said. San Miguel raised around $150 million last year when it sold a 15 percent stake in the food unit for P240 ($5.48) per share. "It should be higher, much higher than that. If we do it next year, it could command a good price," Constantino said, referring to the share price. Reuters calculations, based on current market prices, show San Miguel stands to raise at least P10 billion ($228 million) from the follow-on sale, which would cut its holding in Pure Foods to around 60 percent. San Miguel also expects its beer business to recover in the second half after flat sales in the first six months of the year due to the impact of a higher tax on tobacco and alcohol products. San Miguel Brewery is partly owned by Japan's Kirin Holdings. "We are very happy that the food group is doing very well," said Ang, who is the chief architect of the group's aggressive expansion in the last five years. The 120-year-old San Miguel has been investing heavily in heavy industries such as power, mining and infrastructure as it seeks faster growth after dominating the local market for food and drinks. Food and beverage combined comprised just about 26 percent of the group's revenue in 2012 from around 90 percent just three years earlier.

San Miguel is actively investing in industries such as power, mining and infrastructure in the last five years under the leadership of Ramon Ang.

Photo credits: sanmiguelpurefoods

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