Purefoods eyes acquisition in Indonesia

Posted at 05/28/14 11:26 AM

MANILA, Philippines - San Miguel Purefoods is all set for the ASEAN integration in 2015.

Purefoods president Francisco Alejo said they have a supply chain comprised of Filipino producers and American partners, and an expansion plan already in the works across ASEAN.

He added the company will soon disclose an acquisition of an Indonesian firm "very soon."

"We are already in Indonesia and Vietnam. We have a joint venture in Vietnam with Hormel Foods of the US. We also have a joint venture in Indonesia. In terms of priority, our priority is really Indonesia, 260 million Indonesians. We have people on the ground. We see a lot of opportunity for growth... We are looking for possible acquisitions in the area of processed meats. I am not able to share because of the confidentiality agreement but we hope to close something very soon," Alejo told ANC.

Purefoods is also looking to expand into Myanmar and Cambodia.

Meanwhile, Alejo says Purefoods is profitable enough to raise its own cash requirements.

This is in response to the possibility San Miguel chairman Ramon Ang may sell San Miguel's subsidiaries to fund its diversification into power and infrastructure.

"He has mentioned that several times, if there is an opportunity to raise some funds by using some of the subsidiaries, using San Miguel Purefoods, then I think it makes a lot of sense. But at the same time, Mr. Ang has said he is only willing to go as far as 49 percent of the company to be able to retain control of the company," he said.

Alejo noted San Miguel Purefoods is a profitable business.

"We have cash. We can raise funds. In fact, as of end of March, we have P20 billion in cash. We can also raise funds in terms of bonds and primary offerings. Our balance sheet is very healthy. We can raise funds through borrowings, so I think Mr. Ang has seen that and this is the reason today we continue to be owned 85 percent by San Miguel," he said. - ANC