Stock News 2011: SMC wants 51% of Indophil

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Diversifying giant San Miguel Corporation is holding its ground and will not be making any more investment in Indophil Resources NL unless the Philippine conglomerate is allowed to acquire 51 percent controlling stake in the mining company.

In an interview, SMC president Ramon S. Ang said there are many unresolved issues regarding SMC’s planned investment in Indophil Resources and these will have to be resolved first before they buy any more Indophil shares.

Ang said in a text message earlier that among these issues is SMC’s requirement that it gets a controlling stake in Indophil.

Because of these unresolved issues, Ang said they are not buying any more Indophil shares even if it means the dilution of SMC’s 10.1 percent stake in Indophil which it had acquired for Australian$41.29 million.

SMC’s main interest in Indophil is the latter’s 37.5-percent stake in Sagittarius Mines, Inc. (SMI), which has the rights to the Tampakan gold and copper mine in South Cotabato.

http://mb.com.ph/articles/322380/smc-wants-51-indophil

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Stock News 2011: SMC’s new businesses to propel revenues doubling to P530 billion

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Diversifying giant conglomerate San Miguel Corporation said it is poised for higher growth with its new businesses expected to make up 70 percent of the total revenues in five years.

In a presentation to stockholders, SMC chairman and chief executive officer Eduardo M. Cojuangco Jr. said that the company’s new growth engines were performing well as planned.

For his part, SMC president Ramon S. Ang said the consolidation of Petron Corporation and the firm's power generation businesses will help propel this year's revenues to double to P530 billion.

“With our new businesses, we have more diverse income streams and more paths to grow than ever before. As these segments become larger and their contributions more manifest, we are confident that we will deliver much better value,” Cojuangco said.

He added that favorable demographics, rising disposable incomes, and healthy economic growth all point to compelling near long-term prospects for the company.

For Petron Corporation, he said growth will come from the company’s thrust to reach many areas that still have no access to fuel products. There are also significant opportunities in the production of higher margin petrochemical products, he said.

For power generation, the firm said it is planning to double its capacity over the next five to seven years to meet growing demand and help address a looming power shortage.

Cojuangco said there is also a wealth of opportunities in infrastructure, as there is great demand for better roads and public transportation.

He added that there is also a lot of upside in San Miguel’s traditional food and beverage businesses with the growing affluence of consumers. Its packaging arm, meanwhile, is turning to exports for growth, with more liberal trade regimes in place in the Asia-Pacific.

http://mb.com.ph/articles/321713/smc-s-new-businesses-propel-revenues-doubling-p530-billion