MANILA, Philippines - The hard liquor unit of diversified conglomerate San Miguel Corp. (SMC) has completed the sale of its non-alcoholic beverage assets to sister company San Miguel Brewery Inc. (SMB) for nearly P400 million.
In a disclosure to the Philippine Stock Exchange yesterday, Ginebra San Miguel Inc. said a deed of sale has been executed with SMB for the sale of finished goods and other inventories including containers, packaging materials, goods in process and raw materials used by the former in its non-alcoholic beverage business for the purchase price of P214.97 million.
“With the foregoing, total purchase price paid for the non-alcoholic beverage assets of the company is P397.89 million, exclusive of VAT, net of adjustments to the price of the property, plant and equipment that SMB purchased from the company on April 1, 2015, after subsequent validation and confirmation by the parties,” Ginebra said.
Ginebra’s board in December last year authorized the sale and transfer to SMB of certain non-alcoholic beverage assets and properties.
In 2008, Ginebra purchased San Miguel Beverages Inc. from SMB, marking its foray into the non-alcoholic beverage business.
The company is best known for alcoholic beverages such as Ginebra, G.S.M. Blue, Gran Matador Brandy and Antonov. Ginebra’s non-alcoholic products, meanwhile, include Magnolia Fruit Drink and Big M, among others.
SMB is engaged in the manufacture and sale of fermented and malt-based beverages, particularly beer of all kinds and classes.
The firm earlier this year secured its bondholders’ consent to engage in the business of manufacturing, selling, distributing and dealing in any and all kinds of beverage products.
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