Pure Foods unit to acquire Vietnam livestock firm

MANILA, Philippines - A unit of San Miguel Pure Foods Inc. is set to gain full ownership of a Vietnamese firm engaged in feed milling, meat processing and piggery operations.

In a disclosure to the local bourse, Purefoods said yesterday it has signed an agreement to acquire through wholly-owned subsidiary San Miguel Pure Foods International Ltd. (SMPFIL) a 49 percent stake in San Miguel Pure Foods Investment BVI Ltd. (SMPFIB).

The shares would be purchased by SMPFIL from Hormel Netherlands B.V., Purefoods said.

SMPFIB is the sole investor in San Miguel Hormel Vietnam Co. Ltd., a company incorporated in Vietnam engaged in live hog farming as well as the production of feeds and both fresh and processed meats.

San Miguel Hormel was acquired by San Miguel Corp. (SMC) in October 2003 and in 2006, Hormel Foods Corp. purchased 49 percent of the business.

Initially engaged in feed milling and piggery operations, San Miguel Hormel’s business has expanded into downstream activities that include producing processed meats.

SMPFIL currently owns 51 percent of SMPFIB. Once the transaction is complete, SMPFIB will become a wholly owned unit of Purefoods.

Purefoods, the food and beverage unit of diversified conglomerate SMC, is into dairy, agro, milling and processed meats businesses.

The company currently operates 35 processing plants and 36 feed mills in the country.

In November last year, the firm acquired the trademarks, formulations, recipes and other intangible properties relating to the La Pacita biscuit and flour-based snack business of Filipino-owned biscuit company Felicisimo Martinez and Co. Inc.

Purefoods is looking to raise as much as P15 billion from the offering of preferred shares early this year.