San Miguel Pure Foods Co. Inc., the food manufacturing arm of conglomerate San Miguel Corp., said Tuesday it will buy out partner Hormel Netherlands B.V. to become the full owner of a Vietnamese company.
SMPFC said in a disclosure to the stock exchange wholly-owned unit San Miguel Purefoods International Ltd. signed an agreement for the purchase of Hormel’s 49-percent stake in San Miguel Pure Foods Investment (BVI) Ltd.
SMPFIB is the sole investor in San Miguel Hormel (Vn) Co. Ltd., a company incorporated in Vietnam that engages in livestock, feed production and meat processing.
“Following the completion of the transaction, SMPFIB will be wholly-owed subsidiary of SMPFIL,” SMPFC said.
San Miguel Hormel (Vn) Co was acquired by San Miguel Corp. in October 2003. In 2006, the Hormel group purchased 49-percent of the business.
SMHVCL’s business expanded from feed milling and piggery operations to downstream activities that include producing processed meat.
SMPFC earlier announced plans to spend P8 billion to P10 billion annually over the next two to three years as it aggressively expands domestic and overseas businesses.
The company also plans to expand capacity of manufacturing facilities in Indonesia and Vietnam and penetrate new markets such as Malaysia and Thailand.
SMPFC said in the Philippines, it planned to build 10 new facilities this year to expand production capacity of flour mills and expand nuggets, hotdogs, feed mills and poultry businesses.
SMPFC recently acquired the trademark of local biscuits maker La Pacita, which enabled it to venture into biscuits and snack foods business. The company said it was looking for another possible acquisition.
SMPFC is currently raising up to P15 billion through the issuance of preferred shares. Under the plan, SMPFC will issue 10 million preferred shares as primary offer and another 5 million in oversubscription at an offer price of P1,000 apiece.