Philippines’ San Miguel to list energy unit in 2012

San Miguel Energy Corp (SMEC), the power arm of Philippines’ diversified conglomerate San Miguel Corp (SMC), expects to list in the local bourse within the next three years, local daily Business Mirror quoted SMC president Ramon S. Ang  as saying.

He said the company might offer SMEC shares to the public in three years, if it is doing well already by then.

If investments in power retailer Manila Electric Co. and recently acquired power asset and independent power producer (IPP) contract are placed under SMEC, a listing would boost cash flow and make it attractive to investors, Ang said.

He dismissed concerns the company may get new investors to fund SMEC future activities. “Everything [resources] will be taken from the initial public offering. Those who usually tap investors are those who are in dire need of [funds]. But if a company is not; then it can just proceed straight to offering shares to the public.”

Ang said they may float 49 percent of SMEC to the public and maintain 51 percent of the company.

Although SMEC is still a small part of SMC’s business, Ang said he envisions the power company to contribute 25 percent to the parent company’s total income in the future.

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