San Miguel to Sell Food Unit

San Miguel Corporation in the Philippines is in talks with local and foreign investors to sell its stake in San Miguel Pure Foods Company (SMPFC) this year.

SMPFC president Francisco Alejo said the company was looking at either selling a substantial minority or possibly a majority stake to a new investor.

The food unit, with an estimated value of $1.8bn, has the biggest local market share in poultry (40%) and hotdogs (63%).

In its processed meat and corned beef businesses its market share is 20%.

The company estimates the food unit could grow its net profit by 10-15% this year from PHP2.7bn ($59.6m) in 2009.

In the first quarter, San Miguel’s food unit increased its net profit to PHP872m ($19.2m) from PHP143m ($3.1m) in the same period last year.