Conglomerate San Miguel Corp. (SMC) on Thursday said its board has approved the integration of its packaging business under subsidiary San Miguel Yamamura Packaging Corp. (SMYPC).
In a disclosure to the stock exchange dated 12 September, SMC said its board green-lighted plans for SMC to purchase five percent of San Miguel Yamamura Asia Corp. (SMY), as well as merge the business with SMYPC where the latter will be the surviving entity.
Glass container manufacturer SMY is a joint venture between SMC and Japan’s Nihon Yamamura Glass Co. Ltd.
“With the merger, all the packaging business of the corporation together with its joint-venture partner, Nihon Yamamura Glass Co., Ltd., will be consolidated with SMYPC,” SMC said.
The company said its board also approved the delegation of authority to management to determine the relevant terms and conditions for any deed, agreement or document required to close the proposed transactions.
According to SMYPC’s profile, the international packaging company produces glass bottles and jars, plastic crates and pallets, metal cans, crowns, caps, plastic bags and pouches, boards, carton trays, partitions and pads.
Last year, the SMC subsidiary secured approval from the Board of Investments for the construction of a second glass packaging facility inside its 32,000-square meter plant in Cavite.
The expansion was worth $7.6 million and was seen to increase SMYPC’s capacity by 92,517 metric tons from the existing 145,701 MT.
SMC booked a five-percent decline in net income after tax in the first half of the year, to P26.2 billion from P27.6 billion in the same period in 2018, owing to losses from its units Petron Corp. and San Miguel Pure Foods.