The diversified conglomerate earlier disclosed that the Securities and Exchange Commission has approved the incorporation of the SMC Asia Car Distributors Corp, a 65:35 joint venture between San Miguel and businessman Jose Alvarez.
SMC Asia Car Distributors has an authorised capital stock of $19.6 million (P1 billion), divided into 10 million shares with a par value of P100 per share with paid-up capital of P500 million upon incorporation.
Provision on profit-sharing, arrangements on management and operations are still under negotiations.
The new entity is still being registered in the Bureau of Internal Revenue, the Bureau of Customs, and relevant local government units, for the necessary permits and licenses for the business.
San Miguel noted the deal is not expected to have a material effect on the business, financial condition and operations of the company.
“The investment of SMC in the Business is expected to be fully implemented within this year, subject to ongoing finalization of the commercial aspect of the transaction,” the conglomerate said in its statement.