* Sixth largest outbound M&A for a Philippine company
* Deal highlights confidence amid strong domestic economy
* Acquisition to be funded by long-term debt, other sources (Adds details of deal and fund manager's comments)
By Neil Jerome Morales
MANILA, Aug 17 (Reuters) - Philippine snacks and beverage manufacturer Universal Robina Corp URC.PS is buying the maker of Snack Brands Australia (SBA) for A$600 million ($460.86 million), stepping up its Asia-Pacific expansion.
The sixth-largest outbound acquisition by a firm in the Southeast Asian nation highlights the confidence of Philippine companies in shopping overseas at a time of relatively strong domestic economic growth.
Universal Robina said its subsidiary, URC International Co will buy 100 percent of Consolidated Snacks Pty, which uses the SBA brand name for its salty snacks, from Toccata Securities Pty and Hopkins Securities Pty. plans to create a wider footprint in the Oceania region with SBA providing a solid anchor in the highly competitive Australian fast moving consumer goods and retailing market," the company, a unit of Philippine conglomerate JG Summit Holdings JGS.PS , told the Philippine Stock Exchange.
The deal, which will be funded by long-term debt financing and other sources, requires the approval of the Australian Foreign Investment Review Board.
"Philippine companies are in a very healthy state that they can look at companies outside to acquire," Noel Reyes, chief investment officer of Security Bank Corp, told Reuters. "Now is the best time to buy companies being sold on the premise that you are going to reap the benefits of higher sales when these economies start improving."
The Philippine economy likely expanded at an annual rate of 6.7 percent in April-June, slightly weaker than the 6.8 percent rise in the first quarter, but still enough to retain the country in the list of fastest growing economies in Asia, a Reuters poll showed. 2014, Universal Robina acquired Griffin's Foods, New Zealand's leading snack maker, from Australia's Pacific Equity Partners for $608 million, the fifth-largest outbound Philippine M&A.
Shares in Universal Robina fell 0.2 percent by the midday break, after a one-hour trading halt. Manila's main stock index .PSI was down 0.1 percent.
($1 = 1.3019 Australian dollars)