San Miguel Corp. is set to raise an estimated US$4 billion by selling power assets of Meralco. The move is to fund for the company's expansion into industries and infrastructure. The Philippines' biggest company plans to spend an estimated US$35 billion for San Miguel Corp. Ramon Ang is set to move the company from brewery and food maker into an investor in airlines, roads, energy and mining.
San Miguel Corp was able to raise its stake since 2008 from the US$5.6 billion worth of purchase it has made in Manila Electric Co. After the Manila Electric Co. investment, Ang acquired control of Petron Corp., and bought three of the country's biggest power plants.
Chief investment officer for BDO Unibank Inc., Marvin Fausto said, "Ang has been an opportunistic entrepreneur and he has seen better opportunities so he's selling assets that have already paid off to fund these new ventures. He's moving assets from one to the other, liquidating those where he has made money, and financing opportunities that will eventually pay off like toll roads and airlines."
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