The Philippine government said it had a shortlist of people who may possibly replace businessman Eduardo Cojuangco as chairman of the country“s biggest food and beverage firm, San Miguel Corp.
The s…
The Philippine government said it had a shortlist of people who may possibly replace businessman Eduardo Cojuangco as chairman of the country“s biggest food and beverage firm, San Miguel Corp. The shortlist included Renato Valencia, former administrator of state pension fund Social Security System. Asked in a radio interview about Valencia possibly replacing Cojuangco, Finance Secretary Alberto Romulo said: “He is in the shortlist.” Romulo said the government would initiate two measures to ensure the ouster of Chairman Eduardo Cojuangco and his associates from San Miguel Corp. on or before its 3 May shareholders meeting. He said an executive order was being prepared by the government while a legal battle would be mounted by the presidential legal staff to reclaim its rightful ownership over a 51% stake in the country“s biggest food and beverage group. Romulo said President Gloria Macapagal Arroyo“s recent statements that the government didn“t have enough shares to elect a new chairman was without prejudice to the actions the government is planning to take soon to reverse the situation. Romulo earlier said the government was preparing an executive order to declare a 27% bloc in San Miguel as government-owned on the basis that it was allegedly bought with funds from a levy on coconut farmers during the regime of the late dictator, Ferdinand Marcos. “The one that is recommended is to restate the position of the old executive order that the coconut levy is a tax and therefore public funds. That“s just it, there are no personalities there,” Romulo said, referring to reports the government was seeking to oust Cojuangco due to his close relationship with former President Joseph Estrada. A court had given Cojuangco voting rights over a separate block of 20% in San Miguel which he claimed he bought using his own money. The courts have yet to decide on the true ownership of the shares, as the government claims the block was bought also using the coconut levy. “We do not want to engage in personalities. These are principles, these are policies, you know. I think we have said…that this government will govern based on principles and policies. And the principle and the policy is that the coco levy is a tax and therefore represents public funds,” Romulo said. The comments indicate that if control of the two blocks of shares revert to the government, Cojuangco will be replaced. Romulo said the move had the support of President Gloria Macapagal Arroyo. In a separate development, San Miguel Corp. and Pure Foods Corp. have already agreed on the indicative value for the planned acquisition of the food and beverage firm in the Ayala-led food company. In an interview with reporters, an SMC official said the two parties have agreed in principle to value the entire business of Purefoods between Ps 7 billion and Ps 9 billion. The company official, however, said the value is not final as both companies still have to agree on the general terms of the deal. “They“re still discussing the general terms but they have not agreed on anything. Indicative values, I think, they have agreement in principle. But it“s indicative, nothing final. It“s a range of Ps 7 billion to Ps 9 billion,” the SMC official said. The company official added that the negotiation involves the majority stake in Purefoods, including all its businesses contrary to reports that SMC is only interested on the meats business. The management of Purefoods, however, has not specified any definite value for its food company. The SMC official said there is no definite timetable for the completion of the deal as SMC is still finalizing its recent acquisition of local bottler Coca-Cola Bottlers Philippines, Inc. “They“re concentrating on the Coke deal so we can“t focus on the negotiations with Purefoods. But talks are still ongoing and nothing has been finalized,” the company official said.