San Miguel invites 5 banks for power unit IPO

Reuters

Posted at Jul 08 2011 05:27 PM | Updated as of Jul 11 2011 07:40 PM

MANILA, Philippines - San Miguel Corp. said on Friday it has invited three foreign and two local investment banks to assist in the public offer of its power arm within this year.

San Miguel has invited Goldman Sachs Group Inc., UBS AG, and Standard Chartered Bank, and local investment banks ATR Kim Eng and SB Capital Corp., a unit of Security Bank, to manage the planned initial public offering within this year, it said in a statement to the stock exchange.

San Miguel also clarified its unit SMC Global Power Holdings Corp. would be offering its shares to the public, not San Miguel Energy Corp., as it disclosed on Thursday.

The $6.8 billion food-to-power group, which is seeking more funds to increase its investments in infrastructure and energy projects, did not indicate the timing and size of the IPO.

San Miguel has previously said it was willing to sell up to 49% of its business units, including its power ventures.

It also plans secondary share offers this year for its listed units with a public float of less than the bourse's minimum 10% requirement, such as San Miguel Brewery and San Miguel Pure Foods.

San Miguel shares climbed 2% on Friday to hit its highest in nearly three months after it disclosed the planned public offer. The broader market gained 0.4%.

The company is undertaking toll road and railway projects and plans to bid for airport deals the government is set to auction off under its public-private partnership scheme.

San Miguel is now the largest power producer on the main Philippine island of Luzon, with its power assets contributing about 13% to the group's total revenue. It plans to double its installed capacity by putting up power plants with a combined capacity of 3,000 megawatt in five years.

It partly owns Manila Electric Co., the country's largest power distributor.