UPDATE 1-Manila’s San Miguel gets four bids for Pure Foods

* Says bidders for Pure Foods are 3 locals and one foreign

* Says valuation reported in local media was too steep

* Pure Food shares untraded

(Adds official’s comment, newspaper report)

MANILA, July 19 (BestGrowthStock) – Philippine conglomerate San
Miguel Corp (SMC.PS: )(SMCB.PS: ) received four bids last week for
the stake it is selling in subsidiary San Miguel Pure Foods Co
Inc (PF.PS: ), the company president said on Monday.

Ramon Ang, also director of Pure Foods, did not name the
bidders nor give the value of the bids. But a local newspaper
said on Monday that San Miguel and its financial adviser JP
Morgan had valued Pure Foods’ total capital stock at $1.3
billion, based on an estimate of 10 times the firm’s earnings
before interest, taxes, depreciation and amortisation.

Ang said the valuation reported by the Philippine Daily
Inquirer was too steep.

“Ten times is much too high even for power,” Ang told
Reuters via a mobile text message. San Miguel has been
aggressively expanding into high-growth sectors such as
infrastructure and power. It had obtained shareholder approval
earlier this year to sell more than 51 percent of its core food
and drinks businesses to fund its diversification plan.

Asked if there were three local bidders and one foreign
bidder for the stake up for sale in Pure Foods, Ang said: “Yes,
three plus one.”

Ang said last week San Miguel was selling 49 percent of
Pure Foods. There had been some market speculation it would
sell its entire 99.9 percent holding. [ID:nSGE66B0B1]

Before last week’s bid, sources had said the bidders
included private equity firms Carlyle Group [CYL.UL] and CVC
Capital Partners [CVC.UL], the Campos business clan from the
Philippines, and food firm Universal Robina Corp (URC)
(URC.PS: ). [ID:nTOE66106L]

URC President Lance Gokongwei declined to comment on Friday
when asked if the company submitted a bid.

Company officials and market sources previously said the
enterprise value of Pure Foods — which holds the San Miguel
group’s processed meats, poultry, livestock, feeds and dairy
operations — could be around $2 billion.

Pure Foods, a largely illiquid stock, was untraded on
Monday from its Friday close at 345 pesos ($7.4). The Friday
close was its highest since June 6 when it traded for the first
time in 17 months. The main stock index (.PSI: ) was down 0.5
percent in mid-session.

San Miguel’s A shares restricted to locals were also
untraded while its B shares open to all investors slipped 0.7
percent. Both stocks hit six-month lows last week. Pure Foods
bidder URC slipped 1.56 percent at mid-session on Monday after
hitting a fresh lifetime high of 32.50 pesos earlier in the

($1 = 46.4 pesos) (Reporting by Rosemarie Francisco;
Editing by John Mair and Valerie Lee)

UPDATE 1-Manila’s San Miguel gets four bids for Pure Foods