SMC sells 49% of business in Vietnam for $20.48M

(Update)The international unit of food and beverage firm San Miguel Corp. has sold its Food and beverage giant San Miguel Corp. has sold 49 percent of its feeds and hogs business in Vietnam for $20.48 million to a unit of food manufacturer Hormel Food Corp. In a statement to the Philippine Stock Exchange, San Miguel said its foreign subsidiary San Miguel Foods and Beverage International Ltd. sold 49 percent of San Miguel Pure Foods Investment (BVI) Ltd., its hogs and feeds business in Vietnam, to Hormel Netherlands B.V. The deal would result in a joint venture between Hormel and San Miguel International to operate the Vietnam unit. San Miguel will be left with 51 percent of the business, or roughly 18.1 million shares. "The joint venture combines San Miguel's and Hormel's expertise in marketing, process, technology, and management," San Miguel corporate information officer Ferdinand Costantino said. Constantino added the deal would accelerate San Miguel's expansion in Vietnam. San Miguel Pure Foods in Vietnam used to be TTC (Vietnam) Co. Ltd. before the food and beverage giant acquired it for $35.50 million in 2003. San Miguel in Vietnam engages in the breeding, trading, slaughter, processing and packing of pigs and poultry. Hormel is a multinational manufacturer of meat and food products listed in the New York Stock Exchange. - Patricia de Leon, GMANews.TV