* Says waiting for good timing to launch IPO
* San Miguel Brewery plans bond sale of up to $460 mln
* San Miguel shares down slightly in late trade (Adds background, share price)
MANILA, Oct 12 Philippine conglomerate San Miguel Corp said on Wednesday a possible $850 million initial public offering for its power unit will likely happen this year once market conditions are right.
SMC Global Power Holdings Corp, the country's largest power producer, plans to sell shares worth as much as 36.9 billion pesos ($850 million), including over-allotment and upsize options. That would make the IPO the country's biggest.
San Miguel has said it plans to list SMC Global Power this year as the food-to-power group seeks more funds for its infrastructure and energy projects.
"Just waiting for good timing," Ramon Ang, president of San Miguel, told Reuters in a mobile text message.
He made the clarification following media reports saying SMC Global Power had pushed back plans to sell shares due to volatile market conditions.
Last month, San Miguel announced a base offer of 290 million to 385 million primary and secondary shares at a maximum price of 71 pesos apiece. That excludes an extra 134.75 million shares under upsize and overallotment options.
Wild swings in financial markets in recent weeks have prompted San Miguel to defer the IPO, the reports said, citing unidentified sources.
The Philippine stock index is down about 2 percent for the year so far, falling 8 percent in September alone on worries over the euro zone's sovereign debt crisis and another U.S. slowdown.
Standard Chartered Bank had been tapped as the sole financial adviser for San Miguel Global Power's IPO. It is also bookrunner and lead manager together with Goldman Sachs , UBS , and CIMB Securities (Singapore) Pte Ltd.
ATR Kim Eng Capital Partners Inc and SB Capital Investment Corp, a unit of Security Bank Corp are domestic lead underwriters.
Early on Wednesday, San Miguel group's flagship unit, San Miguel Brewery Inc , said it had board approval to raise up to 20 billion pesos via the sale of peso-denominated bonds with a maturity of at least five years.
San Miguel Brewery, the country's most valuable firm, will use the proceeds to refinance peso-denominated fixed-rate bonds it issued in 2009 and which are set to fall due in 2012.
It did not say when it would launch the bond sale, saying management was still finalising the terms and conditions of the offer.
Shares of San Miguel closed 0.6 percent lower in a market that was largely flat. San Miguel Brewery was untraded.
($1 = 43.6 pesos) (Reporting by Erik dela Cruz and Rosemarie Francisco; Editing by Matt Driskill)