UPDATE 1-San Miguel sells control of banking unit to Malaysia's CIMB

Tue Jun 11, 2013 5:08am EDT

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(Adds details on power unit's IPO plan, possible entry of new PAL investor)

* San Miguel sees deal closing within 30 days

* San Miguel not buying more shares in PAL

* San Miguel still keen on power unit IPO

MANILA, June 11 (Reuters) - Malaysia's second-largest lender, CIMB Group Holdings Bhd, will pay nearly $300 million to buy a 58 percent stake in San Miguel Corp's banking unit, the president of San Miguel said on Tuesday.

"We reached a deal last night. Closing is within 30 days. Same terms," Ramon Ang told reporters on the sidelines of San Miguel's stockholders' meeting.

The deal involving San Miguel's unlisted unit, Bank of Commerce, which has assets worth more than $2 billion, paves the way for CIMB's entry into the Philippines as part of its Southeast Asia expansion drive. For San Miguel, the sale provides more funds to use for acquisitions and expansion.

Closing the deal had hit a snag due to minor issues related to the bank's IT infrastructure and property holdings.

San Miguel, which started as a brewery more than a century ago, has over the last four years invested heavily in capital-intensive power generation and distribution, oil refining, mining, telecom, infrastructure and airline businesses.

It is undertaking infrastructure projects at home such as roads and airports and is planning to invest more in power generation and overseas oil and gas exploration ventures.

It may raise more funds this year via the planned initial public offering of its power generation unit, SMC Global Power.

Ang said SMC Global may initially offer a 10 to 15 percent stake to raise funds for new power projects.

as for its other holdings, San Miguel is not inclined to raise its 49 percent stake in Philippine Airlines, but Ang said he would welcome the entry of a "friendly" strategic investor.

PAL Holdings Inc said on Tuesday the group of tycoon Lucio Tan, which owns 51 percent of PAL Holdings and the airline, had been approached by unidentified investors looking to buy its stake in Philippine Airlines.

"The Lucio Tan group is seriously looking into the proposal," PAL Holdings told the stock exchange.

(Reporting by Erik dela Cruz; Editing by Matt Driskill)

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