Philippines food and beverage conglomerate San Miguel Corp. (SMC) is to sell its stake in the owner of Del Monte Pacific Ltd, which produces food products under the Del Monte name in the the country.
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The divestment is being carried out through the sale of SMC’s minority stake in the joint venture company NutriAsia San Miguel Holdings Ltd to its partner NutriAsia Group for US$150m.
NutriAsia San Miguel Holdings owns 100% of NutriAsia Pacific Ltd. which in turn owns 84.5% of Del Monte Pacific Ltd (DMPL). San Miguel said it would retain no equity interest in the business after the sale is completed.
NutriAsia San Miguel Holdings was set up by SMC and Joselito D. Campos, who controls the NutriAsia Group, in late-2005.
SMC president and CEO Ramon S. Ang said the divestment was “consistent with the original agreement that provided for a friendly process of disengagement by either party”.
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By GlobalDataAng added: “In terms of our larger corporate strategy, this move is also consistent with our plan to drive growth for our company by concentrating our resources in areas where we have full control and the strongest competitive positions. Focus and execution are going to be our priorities moving forward.”
Del Monte managing director and CEO Joselito D. Campos, Jr., said: “We’ve benefited from the year in which San Miguel and the NutriAsia Group worked closely to strengthen and increase the value of the Del Monte business. Our improved competitiveness is evident in our robust performance for 2006. We achieved good top-line growth with many of our business segments posting net sales increases, particularly in the second semester.”
San Miguel said it would continue to partner with NutriAsia in areas of potential mutual interest, such as packaging and distribution and the development of products for SMC’s subsidiary National Foods Ltd for the Australian and New Zealand markets.
In addition to its activities in the Philippines, DMPL also owns the Del Monte brand in India and produces a juice line in China.
