United Biscuits suitor San Miguel mulling solo bid
San Miguel Corporation’s Chief Operating Officer Ramon Ang said the Philippines-based conglomerate does not need a bid partner to make an offer for United Biscuits, The Times reported. The article said San Miguel is thinking about making a GBP 2bn (EUR 2.51bn) offer for the UK-based food company.
United Biscuit’s private equity sponsors PAI Partners and Blackstone Group have been preparing to sell or float the company this year, the item said. The article noted reported valuations of United Biscuits in the range of GBP 1.5bn to GBP 2bn.
A Daily Express report noted previous speculation that San Miguel would need to find a bid partner due to the amount of debt it carries. However, San Miguel this week agreed to sell its shareholding in Philippine Airlines for GBP 610m, the item noted.
The Daily Express item said the US-based food companies Kellogg’s and Kraft have both been mentioned as possible bidders for United Biscuits.
A Financial Times report said United Biscuits’ owners have been holding talks with prospective bidders as well as preparing for a flotation.
The FT report cited people familiar with the talks who said the food companies Ferrero, Kellogg and Ulker Biskuvi Sanay are interested in bidding for United Biscuits.
Separately, the FT article said United Biscuits is thinking about a change of name to McVitie's, which is the name one of the company's UK biscuit brands. The newspaper cited people with knowledge of the plans, who added that United Biscuits has yet to make a decision on whether to change its name. Changing the name to McVitie’s would make a London flotation more attractive to investors due to the brand’s resonance with UK consumers, the people said.
The investment banks JPMorgan Chase and Goldman Sachs are advising on the flotation plans, while Centerview Partners is acting as strategic adviser to United Biscuits, according to the FT report.
Ramon Ang said San Miguel has hired Bank of America Merrill Lynch to advise on a bid for United Biscuits, according to a report from this news service on 11 September.
Source The Times (London), Daily Express, Financial Times