RFM Corp. president and chief executive officer Jose Concepcion III also denied reports (not in The STAR) that there was a proposal from the Concepcion family to sell its majority stake in RFM to San Miguel Corp.
He clarified that there had been old discussions with SMC on a possible merger or acquisition opportunity in RFM subsidiary Swift Foods Inc
"It would be natural for SMC to revive its interest in Swift and other companies since it has a lot of cash too from the recent Kirin investments in SMC," he said.
Concepcion noted that RFM is the one in search of good opportunities for acquisition that will support its growth objectives, explaining that with the recent sale by RFM of its majority shareholdings in Cosmos to SMC, there is still a cash reserve of P2.2 billion for RFM to finance its future plans.
"This comes after paying down its debts, the buyback of WP Argosy shares, and its P2-billion cash dividends to RFM shareholders," he said. Last November, RFM sold its 83.2-percent interest in Cosmos to SMC and subsidiary Coca-Cola Bottlers Inc. for P14 billion.
Since early this year, RFM has been reviewing its business model as it looks for new opportunities for growth. One of the areas of interest, according to Concepcion, is the television industry.
The conglomerate is also reviewing the viability of Swift Foods, in particular the poultry and feeds division, in the light of increasing competition from cheap imports.
RFM’s subsidiaries include Swift, Selecta Dairy Products, RFM Foods Corp. Asia Food Franchising, RFM Equities, and Philippine Townships Inc.
The STAR learned that Philippine Townships was earlier in discussions with one of the country’s major real estate developer for a possible partnership, but the talks fizzled out after the RFM land company found the latter’s books "too messy."
SMC vice-chairman Ramon Ang was earlier quoted by another paper as saying that SMC has received a proposal from the Concepcion family for the sale of their majority holdings in RFM.
But in an earlier interview with The STAR, SMC chairman and chief executive officer Eduardo Cojuangco Jr. said that it was Swift that was being offered, although SMC is not considering it at this time since it has just acquired Pure Foods Corp. From the Ayala group.
Cojuangco also said that he is positioning SMC to become a leader, not only in the country, but also all over the region, in the food and beverage industry.
Ang also said that SMC is now working on closing a $1-billion deal involving a local food company for an expansion program. AT least five more local firms are being considering for acquisition by SMC, including Tanduay Holdings.
It is also choosing between Thai Charoen and Boon Rawd Brewery Co., reportedly Thailand’s leaders in the beer industry, for a possible partnership or outright purchase.
SMC said it is using the P27.88 billion earned from the entry of Japan’s Kirin Brewery Co. for its expansion program. – With Margaret Grey, Conrado Diaz Jr.