In a disclosure to the SEC, San Miguel Corp’s (SMC) said that their agreement to purchase UK’s Ashmore Group’s stake in Philippine Oil Refiner, Petron Corp, will cost them P32.2 Billion plus all the costs incurred by them during the acquisiton of the Petron shares and P40 million as paid-up capital for SEA Refinery Corp (SRC). San Miguel also paid $10 M for the right to acquire Ashmore’s stake in Petron. SRC was the actual owner of the Petron shares and was a subsidiary of the Ashmore Group.
San Miguel Corp’s acquisition of Petron’s shares via an indirect purchase, by buying SRC instead, caused quite a stir in the local bourse. This was because if they purchased the shares outright they would be required to extend a tender offer for the other minority share holders shares. San Miguel however countered that there was no need for disclosure on their part since SRC is not listed in the Philippine Stock Exchange (PSE) and therefore not subject to public disclosure of its activities.
So how does this purchase affect San Miguel’s liquidity, who knows?, but there is news that Kirin is interested in purchasing some of its shares in San Miguel Brewery. So that could keep SMC fairly liquid.
San Miguel, who is a power house in the food and beverage industry, has previously announced that they were planning to diversify into other businesses. Power and Energy Generation being one of them.
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Category: Oil
