Metro Pacific - the Philippine trading arm of Hong Kong-listed First Pacific - is to divest subsidiary Metro Bottled Water for 1.2 billion pesos (about HK$243.96 million).
Metro Pacific said liquor manufacturer La Tondena Distillers had agreed to buy its wholly owned subsidiary Metro Bottled Water.
Metro Pacific said it would record a 568 million peso profit on the disposal and would use the proceeds to reduce head-office debt.
Metro Pacific president Napoleon Nazareno said Metro Bottled Water was at a stage in its development that it would 'best grow further by combining together with another leading market player'.
Metro Bottled Water produces the Wilkins Distilled Water brand, with a market share in the Philippines of about 29 per cent during the first quarter of the year.
La Tondena, an arm of San Miguel, is controlled by the powerful Cojuangco family.