San Miguel defends merger<\/p>\n
MANILA (AFP): San Miguel Corp. (SMC) chairman Andres Soriano
\nyesterday defended the merger of the company's soft drink
\noperations with Coca-Cola Amatil Ltd. of Australia as a major
\nstep for the Philippine giant.<\/p>\n
"In one quantum leap, we expand our horizon from the confines
\nof the Philippine domestic market to an international arena
\nspanning three continents with a consumer base of 448 million,"
\nSoriano told SMC's annual stockholders meeting.<\/p>\n
A decision this month by San Miguel to merge its highly
\nprofitable soft drink bottling operation, Coca Cola Bottlers
\nPhilippines Inc., with CCA -- a deal worth US$2.68 billion -- has
\nbeen criticized by investors.<\/p>\n
SMC had admitted there were "negative perceptions" due to the
\nbelief that Amatil was not as profitable as Coca Cola Bottlers
\nPhilippines.<\/p>\n
But Soriano said the merger "places San Miguel in the
\nforefront of the global dynamic of the softdrink industry,"
\nadding that "any negative in the short term will be minimal."<\/p>\n
He also denied that the fall in the price of San Miguel's
\nstocks last week was due to the merger, attributing it to the
\nvolatile nature of the Philippine stock market, and the fall in
\nmarket confidence in Thailand and Wall Street's losses.<\/p>\n
San Miguel Corp. saw its A shares rise by 50 centavos to 54
\npesos while its B shares rose by 1.50 pesos to 82 pesos
\nyesterday.<\/p>\n
Soriano said reports in the press over the merger and
\ndisagreements with the Philippine Commission on Good Government
\n(PCGG), which holds 48 percent of the SMC shares, "were
\nneedlessly harmful."<\/p>\n
The Soriano family holds less than five percent of the beer-
\nbased multi national, founded by their ancestors in 1890.<\/p>\n
He also denied that there was conflict between San Miguel and
\nthe PCGG, saying the PCGG was supportive and satisfied with the
\ncompany's management.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/san-miguel-defends-merger-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}