Friday, June 15, 2012

San Miguel Corporation to compete on GMA-7 Acquisition

SMC is also "seriously considering" entering the broadcast industry, but declined to elaborate.

The planned acquisitions will be funded through the company's internal cash flow and financing, Ang said.

Cojuangco said the reshaping of SMC will have a significant impact on its financials, allowing the company to reach its P1-trillion sales target in the near term, double the P536 billion it posted in 2011.

Last year, SMC's new businesses of oil refining and power contributed 63 percent to sales.

With the Philippine conglomerate’s recent investments in Exxon Mobil's downstream oil business in Malaysia, and in the firms operating the Skyway and South Luzon Expressway, Cojuango said SMC will continue to grow significantly, representing a fundamental shift in its business.

"By 2015, our infrastructure projects will begin generating significant cash flow, and once finished, our upgrade of Petron's Bataan refinery will result in greater efficiencies, a shift towards more profitable, value-added products and better margins," Cojuangco said.

While SMC is aggressively expanding into high-growth industries, Cojuangco said the company will continue to pursue growth opportunities in its traditional food and beverage businesses.

The conglomerate has been trimming its stake in its traditional businesses since 2007 to support its diversification into infrastructure, power, oil retailing, telecommunications and mining.

Shareholders of SMC approved its planned capital stock hike from P22 billion to P30 billion, which will pave the way for the creation of 1.1 billion Series 2 preferred shares.

Ang said the plan is to offer the Series 2 preferred shares in a single tranche this September, raising gross proceeds of up to P80 billion to refinance existing debt.

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