San Miguel Sells its Entire Minority Stake in Joint Venture Company to the NutriAsia Group
Del Monte is the leading Philippine integrated producer and branded marketer and distributor of premium quality processed food products under the Del Monte brand name.
17/04/07 San Miguel Corporation and the NutriAsia Group controlled by Joselito D. Campos announced that San Miguel is selling its entire minority stake in joint venture company NutriAsia San Miguel Holdings Ltd. to the NutriAsia Group. NutriAsia San Miguel Holdings Ltd. owns 100% of NutriAsia Pacific Ltd. which in turn owns 84.5% of DMPL.
Under the terms of sale, San Miguel will receive an aggregate amount of US$150 million as consideration for the shares and other interests following the closing of the transaction. San Miguel will retain no equity interest in the business after the sale to the NutriAsia Group closes. NutriAsia San Miguel Holdings is the joint venture company set up by Campos and San Miguel Corporation in late 2005.
Said Ramon S. Ang, San Miguel president and chief operating officer, San Miguel’s divestment of its stake in Del Monte via NutriAsia San Miguel Holdings Ltd “is consistent with the original agreement that provided for a friendly process of disengagement by either party. 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 Chief Executive Officer 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.”
Del Monte is the leading Philippine integrated producer and branded marketer and distributor of premium quality processed food products under the Del Monte brand name. The company also owns the Del Monte brand in the India sub-continent and produces a juice line in China.
Despite divesting of its share, San Miguel will continue to partner with NutriAsia in the 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.
Del Monte Pacific Ltd. reported strong full-year profits and record revenues amounting to US$243 million 9% higher than the previous year. Reported net profit for the full year 2006 was US$21.0 million, a 13% increase reversing a 34% decline in 2005.
