Tuesday, October 23, 2012

US$5 billion question: What is self-made man Ramon Ang of San Miguel Corp. (SMC) of the Philippines planning to buy now? My guesses: A brewery in Asean? An Asian airline? An airport?

My Comments:
This self-made businessman Ramon Ang is amazing: he comes out of nowhere as engineer to become trusted executive of Eduardo "Danding" Cojuangco, Jr., he serves with total loyalty and remarkable success, he eventually rises to become the big boss of Southeast Asia's biggest and also oldest brewery and food conglomerate, he boldly diversifies San Miguel, and how he's on the way to becoming the possible No. 1 business leader in the Philippine economy with his most breathtaking corporate maneuvers! Whew!

My wild guess is it's possible San Miguel may buy the shareholdings of Japan's Kirin beer in the Singapore brewer of Tiger beer, since coincidentally Kirin beer is also a shareholder in San Miguel?

(Image of the September 2012 issue of Summit Media's Esquire Philippines magazine)

San Miguel Declines to Identify Acquisition Target

Oct 22, 2012 (Dow Jones Commodities News Select via Comtex) --
By Cris Larano
MANILA--San Miguel Corp. (SMC.PH) on Monday declined to name an acquisition target, citing confidentiality restrictions in the negotiations on the potential investment.

San Miguel President Ramon Ang told reporters Saturday that the Philippine conglomerate is planning a 5 billion acquisition that may be completed within the year, Bloomberg reported. He said San Miguel faces other regional companies in the bidding, but didn't name the target or the industry it is in, according to the report.

San Miguel "has been invited to participate and submit a bid for a possible investment...in line with the ongoing diversification programs and initiatives implemented by the company," San Miguel corporate secretary Virgilio Jacinto told the Philippine stock exchange on Monday.

"Owing to the confidentiality obligations imposed on the company, we are not in a position to disclose the salient features of the said investment opportunity," he said.

Over the past five years, San Miguel has moved away from food and beverage to heavy industries that provide higher returns for the conglomerate. It has acquired oil refiner Petron Corp. and bought minority stakes in power distributor Manila Electric Corp., toll road operator Citra Metro Manila Tollways Corp., Philippine Airlines Inc. as well as airports, power generation companies, and infrastructure development companies. In Malaysia, San Miguel last year took control of oil refiner Esso Malaysia Bhd.

Mr. Ang has said in previous interviews that the company was looking to acquire Asian firms with international operations as well as regional carriers to help Philippine Airlines launch more flights to the U.S. and Europe.

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