Kirin sells San Miguel Corp stake for P40-M

Reuters

Posted at Feb 20 2009 07:49 PM | Updated as of Feb 21 2009 08:31 AM

Philippine investment management firm Q-Tech Alliance will buy Kirin Holdings' 19.9 percent stake in San Miguel Corp for P63 ($1.30) per share, or a total of about P39.6 billion (about $800 million), a company director said on Friday.

Kirin, Japan's second largest brewer, said it would book a loss of $276.2 million as a result.

"We entered into a share purchase agreement," Eric Recto, director at Q-Tech, told Reuters. "We believe the best values of San Miguel have yet to be achieved."

Q-Tech Alliance is a Philippine investment holding company whose stockholders include a unit of Qatar Telecom (Qtel), San Miguel's joint venture partner in its foray into broadband technology and Roberto Ongpin and Eric Recto – the local representatives of UK fund manager Ashmore Group in oil refiner Petron Corp., another prized San Miguel investment.

"For our employees and customers, I see this as a great opportunity. Kirin's strengths in brewing technology and materials sourcing, combined with San Miguel's long tradition of product quality and strong brands are a winning combination," Ramon Ang, San Miguel Corp president, said in a disclosure to the stock exchange.

Kirin said earlier on Friday it would sell its San Miguel stake and buy 43.3 percent of the Manila-based conglomerate's beer unit San Miguel Brewery for about $1.2 billion.