Universal Robina Corp. (URC), the food manufacturing arm of JG Summit Holdings Inc. (JGS), has offered to acquire a substantial stake in San Miguel Corp.'s food unit, a source familiar with the transaction said Tuesday.

Universal Robina is a subsidiary of Philippine billionaire John Gokongwei Jr.'s flagship company, JG Summit, and a competitor to San Miguel Pure Foods Co. Inc. in several segments of the food business, including poultry, canned goods and animal feeds.

Conglomerate San Miguel is seeking to sell up to 49% of San Miguel Pure Foods to finance its expansion into heavy industries.

"The Gokongwei group wants to buy the whole thing, if they are allowed to. They want to get it (Pure Foods) all," said the source, who did not reveal the offer price or the size of the stake being sought.

The source, who asked not to be identified, recalled that Gokongwei tried to win a seat on the San Miguel board four decades ago.

Gokongwei, through Universal Robina and another privately-held company, acquired enough shares in San Miguel between 1970 and 1976 to get a board seat. But he was prevented from assuming the post by a provision in San Miguel's by-laws that disallows owners of a competing company to buy into the food and beverage group. He eventually offloaded the shares.

San Miguel President Ramon Ang said Friday that only 49% of Pure Foods is up for sale. San Miguel owns 97% of Pure Foods.

The source said the $1.3-billion price for 49% of Pure Foods quoted in some newspapers is "way too high" and that even after using several valuations methods the price for the stake won't exceed $1 billion. "Right now, Pure Foods' book value is under $1 billion while the $1.8 billion is Pure Foods total sales," the source said.