The Philippines: Ginebra San Miguel, Inc. sells over P200 mln in hard assets to San Miguel Brewery, Inc.

Ginebra San Miguel, Inc. (GSMI) has sold over P200 million in hard assets - mainly those it uses for its non-alcoholic beverage business - to San Miguel Brewery, Inc. (SMB) for nearly P230 million, it told the stock exchange on April 1.

The liquor unit of San Miguel Corp. said it executed a deed of sale with SMB for the sale of property, plant and equipment used by GSMI in its non-alcoholic beverage business for P226.91 million, excluding value-added tax.

The assets consist of machinery and equipment, vehicles, coolers, chillers and other equipment at end-2014.

The transaction is in line with the move of the Philippine brewer to adopt a multi-beverage strategy through diversifying into non-alcoholic beverage.

In its consent solicitation to bondholders last January, SMB had said the non-alcoholic beverage category remains to have a larger share of consumption and is growing at a faster rate than the alcoholic category.

GSMI is the company behind the brands Ginebra, Antonov, Gran Matador, Don Enrique Mixkila, Vino Kulafu and Tondeña Manila Rum. It also sells non-alcoholic beverages under the Magnolia brand.

GSMI’s non-liquor units include San Miguel Beverages, Inc., which was bought from SMB in 2008, allowing the company to manufacture and distribute non-alcoholic beverage, according to a previous regulatory filing.

03 April, 2015