San Miguel Corp., one of south-east Asia's biggest conglomerate, is getting closer to selling a strategic stake in unit San Miguel Pure Foods Co. to two prospective investors, its president said on Friday (23 July).

According to Philstar, the two bidders will "proceed to further due diligence prior to final negotiations" but San Miguel president, Ramon S. Ang, stopped short of disclosing who they are.

Earlier, reports said that among the interested investors were the Gokongweis' Universal Robina Corp., local pharmaceutical giant Unilab and US-based asset management firm, Carlyle.

San Miguel said it would keep a majority stake in San Miguel Purefoods as only a minority stake would be sold. The minority stake however will be "significant".

San Miguel's food unit is involved in the poultry and livestock operations, feeds and flour milling, dairy and coffee operations, franchise operations and animal feed manufacturing and distribution.

The company was formerly owned by conglomerate Ayala group before it was acquired by San Miguel in 2001 in line with its thrust to become Philippines' largest food company.

San Miguel Purefoods has a market capitalization of 57.5 billion pesos (US$1.23 billion), reports Philstar.