* Funds to be used for investments, acquisitions
* San Miguel diversifying away from food and drink ops
(Adds closing prices, background)
MANILA, July 27 (Reuters) - Philippine conglomerate San Miguel Corp (SMC.PS) SMCB.PS said on Tuesday its board had approved a share sale that could raise around $1.6 billion, with the funds to be used to finance acquisitions and investments.
San Miguel said the board had approved an offer of approximately 1 billion shares, from unissued capital stock and treasury shares, at a minimum price of 75 pesos per shares.
The floor price represents a premium of 10.3 percent to Tuesday’s closing price of 68 pesos for its A shares, which are restricted to locals, and a premium of 9.5 percent to Tuesday’s 68.5 peso close of its B shares, which are open to all investors.
The 120-year-old conglomerate, which makes 9 out of every 10 beers sold in the Philippines, is diversifying away from its food and drink operations into power, mining, telecommunications and infrastructure.
“The proceeds will be used to finance investments and acquisitions of the company,” corporate information officer Ferdinand Constantino said in a stock exchange filing.
Last week, San Miguel said two bidders had been shortlisted to buy a minority stake in its unit San Miguel Pure Foods Co Inc PF.PS. [nSGE66M0G7]
Earlier this year, the firm obtained shareholder approval to sell more than 51 percent of its core businesses. [nSGE63E005]
(Reporting by John Mair; Dhara Ranasinghe)
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