SAN MIGUEL CORP. expects to raise $600 million from the sale of a minority stake in its food, hard liquor, international beer and packaging units which, in turn, will be channeled into new ventures outside its traditional businesses.

The conglomerate is also negotiating with banks to tap a $600-million three-year loan facility to fund its ongoing diversification, the company disclosed to the Philippine Stock Exchange yesterday.

SMC spokesperson Ferdinand Constantino said the sale of a portion of the company?s equity stake in San Miguel Pure Foods Co. Inc., Ginebra San Miguel Inc. as well as its packaging and international beer operations may collectively generate $600 million.

He added that SMC, which recently acquired new interests in toll road and power businesses, was continuing to scout for new ventures. For instance, he said the conglomerate was ?evaluating a possible investment in the mining industry for the development and exploration of new gold and copper mine in the southern Mindanao region which has an estimated ROE (return on equity) of 20 percent.?

On its asset sales, it was earlier reported that SMC was in talks with Minnesota-based Hormel Foods Corp. and three other interested investors on the potential sale of up to 49 percent of its food unit San Miguel Pure Foods, which has a market capitalization of about $200 million.

The company is also in negotiations with other potential foreign partners on a strategic investment in its hard liquor unit Ginebra San Miguel, which has a market capitalization of about $100 million.

SMC is paring down its stake in various subsidiaries?the most recent was when it brought Japan?s Kirin Holding Co. Ltd. into flagship San Miguel Brewery Inc.?to strengthen these units? operations on a stand-alone basis as well as to raise money to venture into higher-yielding businesses.

The company recently gained a foothold in the lucrative power generation business by taking over the 620-MW Limay diesel-run power plant and the contract to manage the 1,000-MW Sual coal-fired power plant in Pangasinan.

It is also an influential voting block in power distributor Meralco after buying out the 27-percent stake held by the state-owned Government Service Insurance System in October last year.

San Miguel also has the option to buy a majority stake in the country?s biggest oil refiner Petron Corp.