DJ San Miguel to Exchange $600 Mln Worth of 2014 Bonds for Stock 

DJ San Miguel to Exchange 600 Mln Worth of 2014 Bonds for Stock

Jan 22, 2013 (Dow Jones Commodities News Select via Comtex) --
By Rhea Sandique-Carlos

MANILA--Philippine conglomerate San Miguel Corp. (SMC.PH) will soon carry out a debt-for-equity swap involving 600 million worth of exchangeable bonds due 2014 in a bid to refinance its existing financial obligations, it said Wednesday.

The firm's board has approved the swap, which will see the bonds being exchanged for common shares out of the company's treasury stocks, San Miguel said in a filing to the stock exchange. The invitation to swap the notes, which are listed on the Singapore Exchange Securities Trading Ltd., will commence on Jan. 29.

In line with the planned bond swap, the company has requested for a six-day trading suspension of its common shares on the local bourse starting Wednesday to allow investors to analyze the move's implications. The trading suspension will last up to Jan. 30.

Over the last five years, San Miguel has moved away from food and beverage to heavy industries that provide higher returns for the conglomerate. It has acquired oil refiner Petron Corp. and bought minority stakes in power distributor Manila Electric Corp., toll road operator Citra Metro Manila Tollways Corp., Philippine Airlines Inc. as well as airports, power generation companies, and infrastructure development companies. In Malaysia, San Miguel last year took control of oil refiner Esso Malaysia Bhd.

The company has said it is looking to acquire Asian firms with international operations as well as regional carriers to help Philippine Airlines launch more flights to the U.S. and Europe.

Write to Rhea Sandique-Carlos at rhea.sandique-carlos@dowjones.com

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01-22-13 2120ET

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