San Miguel power arm eyes IPO in 2014 means BUSINESS

MANILA – San Miguel Corp (SMC) intends to take public its power generation arm next year after the stock market entry of its key shareholder.

"Sana magawa na 'yung [listing of San Miguel] Global Power [next year]," SMC president and chief operating officer Ramon S. Ang told reporters on the sidelines of the Philippine Stock Exchange's 10th listing anniversary this morning.

SMC Global Power had deferred its initial public offering (IPO) for a second time because of adverse market conditions. The power generation company also postponed its P37-billion maiden share sale in 2011.

The holding firm for the power generation assets of San Miguel, SMC Global Power is the country's biggest power producer and accounts for about a fifth of the Philippines' total supply.

"Actually, it's not a problem to raise funds kasi nakapila na 'yung mga kausap natin. It's more of acquisitions," Ang said.

First or second week January listing for Top Frontier

As for Top Frontier Investment Holdings Inc, the key San Miguel shareholder will debut in the local bourse through listing by way of introduction in the "first or second week of January," Ang said.

Early this month, the Securities and Exchange Commission and the PSE cleared the listing of 490.196 million Top Frontier common shares on the Main Board of the local bourse at P178 per share.

Unlike an initial public offering (IPO), listing by way of introduction involves no immediate sale of shares, but requires the applicant to do so within a year after joining the bourse.

The listing includes 240.196 million shares that SMC declared as property dividends to address cross-holding issues.

Top Frontier owns 56.6073 percent of SMC and another 9.4963 percent lodged with the Philippine Depository & Trust Corp. The conglomerate, in turn, roughly owns 49 percent of Top Frontier, while the rest is controlled by a group that includes former trade minister Roberto V. Ongpin, Inigo Zobel and Joselito Campos.

Besides food and beverage, SMC has interests in packaging, power generation, oil refining and retailing, mining, telecommunications, property development and infrastructure. It entered the aviation business last year with the acquisition of a 49 percent stake in Philippine Airlines and Airphil Express for $500 million.

SMC has completed the sale of its remaining 27.1 percent stake in Manila Electric Co, the country's biggest power distributor, to JG Summit Holdings Inc.