This is what most likely Ramon S. Ang would like to have in few years time through San Miguel Corporation. After taking the the presidency of the food, beverage and giant, the company has reached the greater heights, penetrating the international maret and acquiring strategic companies along the way. SMC has bought six companies in four nearby countries,boosting international sales to 13 percent of total revenues. SMC’s major acquisitions were Australian boutique brewer J. Boag and Son, Thai Amarit Brewery Ltd., food processor TTC (Vietnam) Co., Australia’s top juicemaker Berri Ltd., Japanese brewer Kirin Brewery Co. Ltd., Australia’s largest publicly traded dairy National Foods Ltd, and the world’s largest pineapple canner Singapore-based Del Monte Pacific Ltd. However, in November 2007, SMC sold Boag’s to Lion Nathan and National Foods to Kirin. I personally think this is an attempt to limit foreign exposure and shift to deomestic investments. In 2008, SMC acquired GSIS’ shares in Meralco, signed a memorandum of understanding with Qatar Telecom QSC (Qtel) to build wireless broadband and mobile communications projects in the Philippines, and has taken control of the country’s biggest oil refiner, Petron Corporation. Based on some news articles, Ramon Ang revealed that the company will soon provide broadband and high-speed Internet service using Meralco Broadband over Power Lines (BPL). With BPL, users can plug their computer into any electrical outlet in their home and instantly have access to high-speed Internet. Ang is also committed to provide more affordable gas and petroleum products to Filipinos through Petron. It is clear that as an investment strategy San Miguel is into the diversifying game – acquiring upto 50.1% stake only of a company to take control, and the excess money can be invested somewhere else. Ang is like buying stocks of blue chip companies like MERALCO and PETRON. However, with his personality Ang is a hands-on guy. He wanted participation in all of his business venture. But the market is jittery about the direction of San Miguel. That’s is why investors are more excited for the bond offering of Globe Telecom than of San Miguel. For some investors, there is too much risk for San Miguel investing in companies not related to brewery, packaging, and food. Only time will tell if Ang will have the last laugh establishing his name among the top companies in the Philippines or investors are right not betting their money on Ang’s envisioned dynasty.
