January 19, 2009
Execution of the Memorandum of Understanding regarding the Exclusivity for Kirin's Contemplated Investment in Beer Business of San Miguel
Tokyo, January 19, 2009—Kirin Holdings Company, Limited (Tokyo, Japan; President and CEO, Kazuyasu Kato; hereafter, "Kirin") and San Miguel Corporation (Manila, Philippines; Chairman and CEO Eduardo M. Cojuangco, Jr.; hereafter, "SMC") have executed today the Memorandum of Understanding regarding the exclusivity for Kirin in its negotiation to invest in San Miguel Brewery, Inc. (Manila, Philippines; CEO, Ramon S. Ang; hereafter, "SMB"), the beer business subsidiary of SMC.
Kirin will enter into exclusive negotiations with SMC to acquire 43.25% of the issued and outstanding capital stock of SMB. This investment will significantly contribute to Kirin's further growth in its alcohol business in Asia and Oceania
The details of the transaction are to be further discussed by both parties. Kirin and SMC will target on signing definitive agreements by the end of February.
Kirin's long-term business group vision, as outlined in "Kirin Group Vision 2015 (KV2015)", is to be a leading company in Asia and Oceania, and Kirin has been promoting a strategy in these regions of focusing on profitable operation.
SMB's beer market share in the Philippines is approximately 95%, and its parent SMC has long been in the business in Asia, including China, Vietnam, Indonesia and Thailand. Through the contemplated investment, Kirin is aiming to establish the strong operational base on both manufacturing and sales in the Asia and Oceania markets, accelerating creation of group synergies in alcohol business.
Kirin Group will constantly seek to nurture close bonds with its customers and offer the happiness of food and health, based on its marketing slogan oisisa wo egao ni- taste that makes you smile.
San Miguel Brewery, Inc.
1. | Company Name: | San Miguel Brewery, Inc |
2. | Location of Headquarter Office: | Manila, Philippines |
3. | CEO: | Ramon S. Ang |
4. | Capital Stock: (As of FY ended December 2007) |
Php15.3 billion (Approx. ¥29.1 billion)* *Php1.00=¥1.9 |
5. | Net Sales: (As of FY ended December 2007) |
Php44.1 billion (Approx. ¥83.8 billion)* *Php1.00=¥1.9 |
6. | Number of Employees: (As of FY ended December 2007) |
2,823 |
7. | Business Description: | Production and sale of beer in the Philippines |
8. | Core Brands: | San Miguel Pale Pilsen, San Mig Light, Red Horse, Gold Eagle |
9. | Manufacturing Facilities: | 5 manufacturing facilities (all in Philippines) |
San Miguel Corporation
1. | Company Name: | San Miguel Corporation |
2. | Location of Headquarter Office: | Manila, Philippines |
3. | CEO : | Eduardo M. Cojuangco, Jr. |
4. | Capital Stock: (As of FY ended December 2007) |
Php16.1 billion (Approx. ¥30.6 billion)* *Php1.00=¥1.9 |
5. | Net Sales: (As of FY ended December 2007) |
Php154.9 billion (Approx. ¥294.3billion)* *Php1.00=¥1.9 |
6. | Number of Employees: | Approx. 19,000 (including SMB employees) |
7. | Business Description: | |
Beverage: Production and sale of Beer, Liquor, and Non-alcoholic Beverages (44%) Food: Production and sale of dairy products, Processing and sale of meat (44%) Packaging: Cans, plastics and glass containers (12%) ( ) represents the percentage to the total sales (As of FY ended December 2007) |
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8. | History: |
1890 | San Miguel was founded as a brewery |
1922 | Enters soft drink business |
1938 | Enters packaging business |
1948 | Begins beer production in Hong Kong brewery (overseas operations started) |
1981 | Established JV with Coca Cola |
1987 | Acquired La Tondena Distillers, Inc. |
1991 | Established JV with Nihon Yamamura Glass for a glass plant |
2000 | Acquired Australian premium beer manufacturer J. Boag & Son |
2001 | Acquired meat processing company Purefoods Corporation Reacquired Coca Cola Bottlers Philippines, Inc. Acquired Cosmos Bottling Corporation |
2002 | Kirin Brewery (current Kirin Holdings) invested 15.55% in the Company |
2004 | Acquired 51% of the leading Australian juice manufacturer Berri Ltd. |
2005 | Kirin Brewery made additional investment in the Company in January and April (current investment ratio: 19.91%, as of September 2008) |
2005 | Acquired dairy manufacturer National Foods Limited |
2007 | Sold shares in Coca Cola Bottlers Philippines, Inc. Sold shares in Del Monte Pacific Ltd. Sold shares in National Foods Limited to Kirin Holdings Company, Limited. |
2008 | Sold shares in J. Boag & Son to Lion Nathan Limited SMB listed at Philippine Stock Exchange -Percentage of shares at IPO:5.75% |