Philippine conglomerate San MiguelCorporation (SMC) on Monday announced to bundle its total food, beer and liquor business into a single entity. The business will be consolidated in a 336.35 billion pesos ($6.55 billion) share-swap transaction into San Miguel Pure Foods Co., which will be renamed as San Miguel Food and Beverage Inc.
San Miguel Pure Foods, so far was a company with businesses mainly in animal feeds, fresh chicken, fresh meats to processed meats, dairy, spreads, oils, biscuits, ice cream, coffee and jelly snacks but will expand now its primary purpose to include alcoholic and non-alcoholic beverages in its product line
In a regulatory filing, San Miguel Pure Foods said it is acquiring 7.859 billion common shares of San Miguel Brewery Inc. (SMB) and 216.972 million shares of Ginebra San Miguel Inc. from parent SMC for a total transaction value of P336.35 billion ($6.55 billion).
In return, SMC will subscribe to 4.242 billion additional common shares of Pure Foods—particularly from the new shares to be issued with an increase in authorized capital stock.
Pure Foods has called for a special stockholders meeting on January 18 to ratify the transaction alongside changes in bylaws needed to proceed with this transaction.
Shares of the holding entity surged 50% after announcement.