MANILA - Food-to-power Philippine conglomerate San Miguel Corp. (SMC) is holding talks with foreign groups to sell a substantial stake in its liquor arm in the coming months, the company's president said.

SMC President Ramon Ang told reporters the sale of a stake in Ginebra San Miguel Inc (GSMI), the country's largest liquor firm, would likely be concluded before a planned divestment of up to 49% of the group's food arm San Miguel Pure Foods Co. Inc. in the next 6 months.

"The ones we're talking to for an investment in GSMI are bolder. For food, we've been doing it for a long time but it's slower," Ang said. He declined to say how much stake the group was selling in Ginebra.

San Miguel currently holds at least 79.5% of Ginebra, which has a market value of $121.3 million, based on the liquor company's latest disclosure on its top shareholders as of end-June.

Ang said San Miguel was in negotiations with US food maker Hormel Foods Corp. and other groups for the sale of nearly half of Pure Foods, which is valued at about $109 million.

"Hormel is interested. We're still doing the valuation. We're also talking to three others," Ang said.

Hormel owns 40% of processed meats firm The Pure Foods-Hormel Co, a subsidiary of Pure Foods.

San Miguel, Southeast Asia's largest food and drinks group, said as early as last year it wants to sell parts of its major subsidiaries through strategic partnerships or a share offering and retain 51% as it ventures further into heavy industry.

Ginebra shares closed unchanged at P17.25 on Tuesday, underperforming the main index's 1.8% gain. Local markets were closed on Wednesday for a holiday.

Its shares have risen more than 30% so far this year, below the broader market's 54.2% gain. It reached a 9-month peak of P18.25 last week.

San Miguel owns nearly all of Pure Foods, which has been untraded since May 27. The group is moving away from its core businesses and into capital-intensive and highly regulated sectors such as oil, power, water and telecommunications to feed future growth.

It bought a 27% stake in power retailer Manila Electric Co. for over $600 million last year.