San Miguel Brewery Inc., a joint venture partnership between San Miguel Corporation and Kirin Holdings Company, Limited, has signed a share purchase agreement with its parent company to acquire SMC’s international beer business subsidiary, San Miguel Brewing International Limited.

In a disclosure to the Philippine Stock Exchange, SMB said it will acquire all percent of SMBIL with an enterprise value of $300 million. The transaction will be funded by external debt and is expected to be completed sometime end-January 2010.

“By integrating both the domestic and international beer businesses, we can improve the growth and returns of the business as a whole and broaden SMB Inc.’s geographic participation, strengthening our brands and presence in the region,” said president Ramon S. Ang.

SMBI president Roberto N. Huang added that, with this acquisition, San Miguel Brewery is expanding its footprint to a bigger and broader platform in Southeast Asia and China, and potential access to Kirin’s platform in other developed and emerging markets in Asia.

“Additional brewing facilities overseas will offer greater operating flexibility for SMB’s operations and provide real opportunity for enhancing the already solid performance of our domestic operations,” Huang added.

The Royal Bank of Scotland (RBS) was SMC’s sole financial adviser for the transaction. ING acted as an independent financial adviser for SMB Inc.

SMBI hopes to fold in the international beer operations by the end of the year or early 2010. Huang said this will allow the company to produce and market San Miguel beer in both the domestic and international markets.

The firm had earlier issued P38.8 billion worth of fixed rate bonds to finance its acquisition of the domestic beer brands and brewery land assets from SMC.

The SMB fixed rate bonds were issued in three series on April 2009, maturing on 2012, 2014 and 2019 respectively.