San Miguel serves up a second corporate shake-up

By Rosemarie Francisco

MANILA (Reuters) - The Philippines' San Miguel (SMC.PS: Quote, Profile, Research, Stock Buzz) (SMCB.PS: Quote, Profile, Research, Stock Buzz) may sell part of its food business and more of its flagship beer operations in a new corporate shake-up that shifts the food and drinks giant further away from its roots.

"The restructuring may require the divestment of part of our interest in our major subsidiaries through either an IPO or follow-on offering and strategic partnerships with existing partners and other industry leaders," Chairman Eduardo Cojuangco told a shareholders' meeting in Manila on Thursday.

"In the event that we do pursue such a partnership, San Miguel would retain controlling interest of at least 51 percent."

Japan's Kirin Brewery (2503.T: Quote, Profile, Research, Stock Buzz), which already has a 20 percent stake in San Miguel, signaled it might buy shares in the group's domestic beer unit, San Miguel Brewery (SMB.PS: Quote, Profile, Research, Stock Buzz).

"We are very interested in the beer business," Yoshinori Isozaki, Kirin's representative on the San Miguel board, told Reuters.

He was coy about whether Kirin, which has made a string of acquisitions in recent years to reduce its reliance on its sluggish home beer market, would be interested in upping its stake in the parent group.

"We have to think of the feelings of the Filipinos. This is a national brand."

Southeast Asia's largest food and drinks group has still to win over fund managers to a previous strategic shift, announced last year, that saw it list its domestic beer unit and declare an intention to branch into mining, power, utilities and property.