MANILA - The energy arm of diversified conglomerate San Miguel Corp. (SMC) is planning to hold an initial public offering (IPO) within the next 3 years, according to SMC President Ramon Ang.

"We will be holding the IPO of SMEC probably after 3 years. We can do it," Ang said.

He added that their recent acquisitions, including a stake in the Manila Electric Co. (Meralco) and several power generation interests, "will set a good cash flow for SMEC, thus will enable us to undertake the IPO."

Ang said SMEC would sell as much as 49% of its shares to the public. SMEC's parent, meanwhile, will keep 51% of the company, he said.

According to Ang, the IPO is part of SMC's long-term goal to increase the share of power-related businesses in its portfolio to 25% from the current 10%. He said the food and beverage business will likely account for 10% to 20%, while its telecom business will take up 30%.

Last week, SMC won the auction for the 620-megawatt Limay combined-cycle power plant, and bought the independent power producer contract of the 1,000-megawatt Sual power plant.

The diversified conglomerate is set to acquire a 35% stake in Private Infrastructure Development Corp., a consortium of construction companies that will build the $312.5-million Tarlac-Pangasinan-La Union Expressway project.

Earlier, SMC took a significant stake in power retailer Meralco and oil refiner Petron Corp.

Even with the long list of acquisitions, Ang said SMC will engage in a "buying spree" to be the "top conglomerate with the biggest sales revenue and the most diversified."

"I do not want to reveal what power firms or where we will be putting our investments, but what I can say is that we are looking at every opportunity," he said.

Ang said SMC would want to invest in oil, coal, gas field, oil refinery, gasoline station, and power industries. He said, however, that they are not keen on acquiring geothermal assets of the National Power Corp. (Napocor).