MANILA, Philippines - San Miguel Corp. is teaming up with Toyota Tsusho, one of the largest trading companies in Japan, and Tokyo-based financial services group Orix Corp. for the proposed $1.1-billion Laiban Dam project in Tanay, Rizal.
On the sidelines of the company’s annual shareholders meeting yesterday, San Miguel president and chief operating officer Ramon S. Ang said if the Laiban Dam project will be awarded to them, the conglomerate will form a joint venture firm with the two Japanese firms owning a combined 40 percent stake.
Toyota Tsusho is also San Miguel’s partner in a bid to acquire the Mariveles Grains Terminal, considered the country’s most modern grain handling facility. The Japanese firm has a worldwide presence through its many subsidiaries and operating divisions whose range of products include metals, machinery and electronics, automotive components, energy and chemicals, foodstuff and consumer products.
With operations in 26 countries and regions worldwide, Orix, on the other hand, is engaged in a number of activities which include leasing, corporate finance, real estate-related finance and development, life insurance, and investment and retail banking.
Orix will provide the technologgical know-how while Toyota Tsuho will provide the financial expertise as San Miguel hopes to enter into a joint venture with the state-run Metropolitan Waterworks & Sewerage System (MWSS) to undertake the Laibon Dam project.
However, Ang said San Miguel has yet to receive any word from the MWSS about the unsolicited proposal it submitted.
The Laiban Dam project is considered one of the biggest infrastructure projects launched by the Arroyo government and is considered the largest single project in the 131-year history of MWSS.
The conglomerate has been aggressively venturing out of its core food and beverage business following a string of asset disposals in line with efforts to boost profitability.
After forging a non-binding agreement with the Private Infrastructure Development Corp. to invest in the P15-billion Tarlac-La Union Expressway, San Miguel is eyeing to build with the same group a highway from Nueva Ecija to Cagayan Valley, Ang said.
Eduardo Cojuangco Jr., chairman and CEO of San Miguel, said the conglomerate is being substantially reshaped to capitalize on the most promising growth and profit opportunities that are currently available to them.
“We have always tried to take the larger view and this is why what you see unfolding is a strategy that allows for periodic change and a rebalancing of priorities. So we’re constantly seeking the right balance between good growth and stability,” Cojuangco said.
Ang said San Miguel continues to be on the lookout for new acquisitions to further spur growth. “We are looking at several other companies and although it is too early to disclose anything substantial, we’re happy that with the current crop opportunities open to us. Our history of building shareholder value through acquisitions has been generally sound and successful. And we’re confident that as we add new businesses into our fold, the same will hold true,” he said.
“Some of our strategic growth opportunities will show tremendous potential right away; others may take time and further investment to growth. But by taking an active role in these high-growth, high-margin industries, we are facing an unprecedented opportunity to fasttrack our company’s growth,” Ang added.