San Miguel Corporation (SMC) is putting up a new affiliate that will serve as the official distributor and importer of BMW cars in the country, the conglomerate said in a disclosure filed to the Philippine Stock Exchange on Tuesday, July 18.
San Miguel said it is has filed documents with the Securities and Exchange Commission to form SMC Asia Car Distributors Corp. on July 17, Monday. The new company will engage in the luxury car business.
“SMC Asia Car will be the corporate vehicle that will engage in the business referred herein and is 65 percent owned by the company and 35 percent owned by Mr. Jose Alvarez,” SMC Corporate Information Officer Ferdinand Constantino said.
The deal comes a week after the conglomerate confirmed the talks between SMC Chairman and President Ramon S. Ang and Asian Carmakers Corp. (ACC) Chairman and Palawan Gov. Jose Alvarez for a possible investment.
ACC has been the official importer and service provider of BMW cars in the country since 1993. It is just one of the many businesses in the Philippines and abroad of Alvarez who was considered the richest elected official in 2014, according to a TV report on GMA Network.
In 2015, ACC reported a net income of Php76.6 million, almost double the Php35.1 million the previous year. Net sales, however, fell slightly to Php2.3 billion in 2015 from Php2.6 billion in 2014, according to financial statements submitted to the SEC. Luxury car makers are worried about future financial prospects amid government plans to increase vehicle taxes, especially on luxury cars.
SMC is one of the
The company also announced that it is in talks to acquire a majority stake of daily broadsheet Philippine Daily Inquirer on Monday, July 17.
Elyssa Christine Lopez is a staff writer of Entrepreneur Philippines.
This story originally appeared on Entrepreneur.com.ph.
* Minor edits have been made by the