MANILA - Diversifying food and beverage giant San Miguel Corp. plans to publicly list unit Bank of Commerce, but has yet to come up with plans on how to turn the mid-sized bank into a major player in the financial sector.

"Definitely the bank will go for listing later on," San Miguel President Ramon S. Ang said in an interview.

For now, the bank will concentrate on a new commercial strategy, which includes installing Bank of Commerce automated teller machines (ATMs) in 1,500 gas stations of Petron Corp., the oil refiner controlled by San Miguel.

The installation of ATMs is part of three "strategic priorities"-- aligning the bank’s operations to reflect a new commercial strategy of servicing San Miguel’s clients and business partners; expanding the bank’s base of customers; and, strengthening its capital position. The priorities were outlined by San Miguel after securing a controlling stake in the bank previously held by Antonio O. Cojuangco.

In May, San Miguel completed the purchase of a controlling stake in Bank of Commerce with the infusion of P2 billion in equity, bolstering the mid-sized bank’s authorized capitalization to P6 billion and allowing the conglomerate to align the bank’s operations to that of San Miguel.

The acquisition, announced last year, was made through property arm San Miguel Properties, Inc. and the San Miguel retirement fund. The capital infusion raised San Miguel’s stake in the bank to 51.1% from 34%.

Last week, San Miguel Properties said it would exercise its right to protect existing shares in the Bank of Commerce from being diluted, by subscribing to four million new shares to be sold by the bank at P173.54 apiece.

The subscription would cost San Miguel Properties P694 million, increasing its equity in the bank by another 10% to 40% if other shareholders do not exercise their preemptive rights.

Some analysts doubt whether the conglomerate could turn Bank of Commerce into one of the country’s leading banks since the industry is already a three-corned fight among Sy-led Banco de Oro Unibank, Inc., Ayala-led Bank of the Philippine Islands, and the Metropolitan Bank and Trust Co. In any case, Mr. Ang said there were still no immediate plans to enter the field.

"If a bank wanted to become a major player [in the banking industry], all it needs is capital infusion in cash. If you have a cash equity of P100 billion for example [that will make the bank big]. San Miguel however has no plans to do that yet," Mr. Ang said.

"The banking arm of San Miguel [is meant] to help our dealers, suppliers and our property buyers," he said.

San Miguel Corp. is a holding company engaged in various businesses which include food, beverage, packaging, and property. Last year, it entered heavy industry by acquiring a 27% stake in Manila Electric Co. It also owns a 49% stake in Liberty Telecoms Holdings, Inc. and is in the process of buying a 51% stake in Petron.

San Miguel "A" shares, exclusive to locals, did not move at P59.50 apiece on Thursday, as did its "B" shares, open to all investors, which stayed at P60.60.