SMFB gets more shares of SMC beer, liquor units

San Miguel Food and Beverage Inc. (SMFB), formerly San Miguel Pure Foods Co. Inc., has been transformed into a new consumer powerhouse with the infusion of P336.35 billion worth of shares in beer and liquor businesses held by its parent conglomerate.

Upon approval by the Securities and Exchange Commission of an increase in its authorized capital, SMFB will issue 4.24 million in new shares to parent conglomerate San Miguel Corp. at P79.82 per share, SMFB disclosed to the Philippine Stock Exchange on Friday.

These shares are in exchange for SMC’s 7.86 billion common shares in San Miguel Brewery and 216.97 million common shares in Ginebra San Miguel Inc.

Last week, SMC and SMFB signed the deed of exchange officially transferring the shares from the former to the latter.

This means that in addition to the existing food businesses under Pure Foods, SMFB now owns 51.2 percent of San Miguel Brewery, the country’s leading beer maker, and about 76 percent of Ginebra San Miguel, the country’s leading gin maker.

SMFB recently obtained the approval of the Securities and Exchange Commission for the change of its corporate name and the change in the par value of shares from P10 per share to P1 each.

At the PSE, SMFB’s ticker has also been officially changed to “FB” from “PF.”

The 4.24 billion common shares to be issued by SMFB to SMC will be taken out of the increase in its authorized capital stock to P12 billion divided into 11.6 million common shares with par value of P1 each and 40 million preferred shares with par value of P10 each.

After the consolidation of all traditional businesses into SMFB, this unit plans to undertake a follow-on offering worth at least $1.5 billion. The upcoming equity offering is projected to bring SMFB’s market capitalization to $12 billion, SMC president Ramon S. Ang had said.

As of Friday’s close, SMFB was valued by the stock market at P115.67 billion ($2.22 billion).