Philippine conglomerate San Miguel is looking at options to sell about 25% stake in its food business, San Miguel Pure Foods until 2014, in an effort to raise funds for expansion of the group’s operations.
San Miguel president Ramon Ang and chief financial officer Ferdinand Constantino were quoted by Reuters as saying that San Miguel Pure Foods is forecasted to achieve a double-digit revenue growth for the full-year 2013.
Higher revenues would likely allow San Miguel to divest its stake in Pure Foods at a premium to market prices, Constantino added.
Based on the current market prices, San Miguel is valued at about PHP10bn ($228m) from the follow-on sale, which would reduce the company's holding in Pure Food to an approximate 60%.
In 2012, San Miguel sold a 15% stake in the food unit for PHP240 ($5.48) per share, raising about $150m.
San Miguel's food and beverage operations accounted for about 26% of the group revenues last year.
