In a press briefing after the listing of SMB yesterday, SMC president Ramon Ang said SMC plans to list all of its operating units to ensure that they are run efficiently and transparently while helping the parent company raise funds to pay debt and finance new investments.

Ang said they plan to consolidate all the group’s food businesses into San Miguel PureFoods Company, which is already listed at the Philippine Stock Exchange, and then conduct a follow-on offering.

He said both SMPSI and the follow-on offer of SMPFC will be slated for the first quarter of the year or as soon as the offering is approved by regulators and the PSE.

Ang added that they plan to sell at least 20 percent of the packaging unit while SMC is willing to retain just 51 percent of its food business which reported revenues of R85 billion last year – double the revenues of SMBI.

SMBI successfully listed its shares at the PSE after a successful initial public offer of 770.52 million shares at R8.00 per share. SMB closed at R8.50 per share or 6.25 percent above the IPO price after opening at R8.30.

Ang said the offer price was equivalent to 14 times SMB’s earnings per share as against the current average market price to earnings ratio of 10 times adding that investor interest was strong because of the assurance of at least 7 percent dividend annually.

He said tycoon Henry Sy was among the biggest investors in the IPO with a personal investment amounting to R300 million worth of SMB shares and has instructed his stockbrokers to "buy a few hundred million more." Industry sources placed Sy’s investment at around P500 million.

While the funds raised by SMC from the sale of shares will be investment in the mining, infrastructure and utilities sectors, Ang said they will remain prudent in acquisitions and will not "over-pay" noting that they have to be assured of a return on equity of at least 15 percent.

He noted that while times of crisis presents good investment opportunities, the market has yet to hit bottom so this is still not the best time "to grab something."

Meanwhile, Ang said SMC will continue to focus on the domestic market after initially making an aggressive foray into seven regional markets after finding it easier to do business in the country.

He said their Australian investment was hit hard by the drought there while business policies are not very stable in other countries. "Its more stable here and the government is easier to talk to in the Philippines," Ang said.