By Jenniffer B. Austria

SAN Miguel Corp. said yesterday its board has approved the sale of P38.8 billion worth of brewing assets to its beer unit, the similarly listed San Miguel Brewery Inc., ahead of the planned entry of Japan?s second largest brewer into it.

The holding firm told the Stock Exchange it would sell its domestic beer brands for P32 billion and land worth P6.8 billion to the brewery. It would also sell P239 million worth of real estate to San Miguel Brewery?s pension fund.

?The foregoing transactions will be implemented after obtaining the required approvals from the appropriate regulatory authorities,? San Miguel said.

Southeast Asia?s largest food and beverage group said it was spinning off the assets as it shifted into new lines of business.

Last year, San Miguel acquired a 27-percent stake in power distributor Manila Electric Co. and a controlling stake in oil refiner Petron Corp.

The group has also announced plans to bid for the government?s power-generating assets, and to explore an alliance with Indonesia?s PT Bumi Resources, which owns the world?s largest thermal coal exporter, Kaltim Prima Coal. It also plans to sell portions of its packaging business this year.

Earlier this month, San Miguel and Japan?s Kirin Holdings Co. announced they had signed an agreement to negotiate the sale of up to 43.25 percent of San Miguel Brewery to Kirin by February in a deal that could reach P59 billion.

That deal would leave San Miguel Corp. with a 51-percent stake in the brewery. Kirin separately holds a 19.9-percent stake in San Miguel Corp. The Japanese brewer also acquired San Miguel?s Australian dairy and juice manufacturer National Foods last year for $2.6 billion.

The Stock Exchange requested more information on the sale of San Miguel?s brewing assets following its disclosure, and the group was expected to comply today.

San Miguel Brewery?s share price closed at P10 yesterday, up P0.10 from Tuesday?s finish of P9.90.

San Miguel?s A shares finished unchanged at P40. Its B shares, which are open to local and foreign investors, closed at P41 from P41.50 on Tuesday. With AFP