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San Miguel looking to sell control of SMB, Ginebra, Purefoods businesses; Danding Co

http://www.pbaddicts.net/news-f14/san-miguel-looking-to-sell-control-of-smb-ginebra-purefoods-businesses-danding-cojuangco-looking-to-cash-out-t5977.htm#52202

Several weeks back, I wrote about the interest of Japanese beer giant Kirin to increase its stake in San Miguel Brewery and gain control of the San Miguel subsidiary. At the time, San Miguel Corporation president Ramon Ang denied that the food and beverage giant was looking to give up control of its beer operation, saying that the company seeks to retain control of its main businesses, which include San Miguel Brewery Inc., Ginebra San Miguel Inc., and San Miguel Pure Foods Corporation.

Ang has since changed his tune, as two weeks ago, the company sought board approval to sell majority stakes in its food and beverage holdings. The company aims to raise additional capital to fund its expansion into high-growth industries.

Apart from interest from Kirin in SMB, Ang himself confirmed that the mother company is in talks to sell Ginebra to the brewery. He also said that there are already interested buyers in San Miguel Pure Foods.

It should be noted that while most of San Miguel’s traditional food brands such as Magnolia, Monterey, and B-MEG have been folded into San Miguel Pure Foods, the company is still headed by Butch Alejo, a professional manager who was part of Purefoods before the sale of the company by the Ayala Corporation to San Miguel. In previous years, San Miguel has shown few qualms about letting go of brands associated with the company: it sold its dairy business (including Magnolia ice cream) in 1998 to Nestle and its stake in Coca-Cola Bottlers Philippines Inc. (including Royal Tru-Orange) to the Atlanta-based Coca-Cola Company. San Miguel Pure Foods is currently in a joint venture with American meat company Hormel in its canned and processed meats business.

Further making matters interesting are the murmurs about the possibility of San Miguel chairman Danding Cojuangco cashing out of the company. The former Marcos crony has been reported to be battling an illness.

These giant moves, if and when they happen, would cause ripples beyond the business world, and it would be felt especially in the Philippine Basketball Association. The San Miguel PBA teams – San Miguel Beer, Ginebra, and Derby Ace (nee Purefoods) – provide enough marketing value apart from boosting corporate morale, so whoever controls the companies will most probably keep them around.

But there will also be changes. For one, there will be realignment, because while San Miguel and Ginebra will most likely still be sister teams, Purefoods might be under different umbrella. Also, if Cojuangco, a big-time basketball fan who once served as project director of the Philippine national basketball program, leaves San Miguel, the teams may not have a patron who will allow the carefree spending for the ball clubs’ operations.

If all these things go down, we might wake up one day to realize that the PBA is no longer an SMC league. I would not mind that at all.
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Comments

  • the_BuGsthe_BuGs PEx Veteran ⭐⭐
    well kung true man.. eto na rin ang isa sa sinasabi ko nuon pa SMC ang bumubuhay sa PBA ngay... since may sakit si danding at yung papalit naman eh hindi sports enthusiast... mawala ang SMC teams sa PBA malaking problema...

    kelangan na sa PBA ang mag revamp hangat maaga pa... para mabuhay pa...
  • Ibalik ang MBA
  • ok to para matigil na mga 1 sided tades at biased calls favoring SMC.... mind you... matatangal lang ang mga sister team pero hindi madidisband..!
  • mas ok na yung SMC dominance kaysa TNT (MVP) dominance.

    tingnan nyo ang UAAP it's sickening to watch. buti na lang sa NCAA natalo ang SBC. :glee:
  • Jay P. MercadoJay P. Mercado Moderator PEx Moderator
    Ramon S. Ang, present SMC president, may be the one running San Miguel when Danding Cojuangco formally retires. Ang is also known as an active sports enthusiast who has backed several sports apart from basketball.

    I doubt if SMC would give up their stake in the PBA. Unlike Coke which opted to take over the PBA franchise when the Coca-Cola company took over management, I doubt if SMC is willing to give up any of their three franchises in the league. Most likely, they would be using their other brands to carry the franchises' names. These would include their telecoms company (assuming the PBA relaxes its rules on no direct competition in the PBA as it goes head-on with TNT), and Petron, which they own majority shares.

    Meralco's majority shares is owned by MVP's group even if SMC also partly owns the utility firm. If Meralco rejoins the league, it would be run by MVP's group, not Ramon Ang. Pangilinan has other companies like Harbour Center and PLDT so he'll probably use these other brands as well when they try to buy out the franchise of moribund and financially-strapped teams like Sta. Lucia and Barako Bulls.
  • I hope this request isn't too much to impose on people re-posting content here: kindly make sure to post the link to the original story. Not only would it drive traffic to the source of the content (in this case, my blog), but it would also allow readers to examine the content, as well as the links to the stories I used as reference for my blog.

    Here my original blog post:
    http://firequinito.com/archives/337-San-Miguel-looking-to-sell-control-of-SMB,-Ginebra,-Purefoods-businesses;-Danding-Cojuangco-looking-to-cash-out.html

    Thanks!
  • color_s_Kaboinkcolor_s_Kaboink PEx Influencer ⭐⭐⭐
    i have a source na baka daw ibenta ang pfoods sa unilab. not sure about pero parang ganun daw. though nagtataka ako ang layo ng unilab para mag venture sa food industry. i asked him if what will happen to pfoods once mangyari nun.. no answer siya
  • ikyanikyan PEx Veteran ⭐⭐
    Si MVP ang papalit kay Danding sa PBA.
  • color_s_Kaboink, natuwa ako dun sa rumor mo. pinatulan ko. eto yung connect:

    A totally unsubstantiated rumor about a potential buyer for Purefoods: The Unilab family

    http://firequinito.com/archives/339-A-totally-unsubstantiated-rumor-about-a-potential-buyer-for-Purefoods-The-Unilab-family.html

    While trolling around the Pinoy Exchange forums, I came across an interesting discussion about my previous post about the San Miguel Corporation possibly selling control of some of its core businesses in food, beer, and liquor. The last post, about a potential buyer for the San Miguel Pure Foods Corporation, caught my eye, and got my wheels turning:

    i have a source na baka daw ibenta ang pfoods sa unilab. not sure about pero parang ganun daw. though nagtataka ako ang layo ng unilab para mag venture sa food industry. i asked him if what will happen to pfoods once mangyari nun.. no answer siya


    At first glance, it doesn’t seem to make sense; why would Unilab, the country’s biggest pharmaceutical company, be interested in Purefoods?

    Well, a heir of the Campos clan, Joselito “Butch” Campos, started his own food conglomerate called NutriAsia. It initially started small, producing sauces, ketchup, and vinegar.

    The company, however, set its sights to something bigger when in 2005, Campos tried to purchase Del Monte Pacific. However, rumor had it that the Campos family was unwilling to fund the acquisition with Unilab money. Meanwhile, Del Monte Pacific had another buyer interested: First Pacific, which you may remember as the investment company headed by one Manuel V. Pangilinan.

    Campos, however, succeeded in acquiring Del Monte Pacific by forming a joint venture with San Miguel Corporation to buy the company. But the partnership did not last long. In 2007, Butch got clearance to finally dip into family funds to buy out the whole San Miguel stake in the JV and take control of Del Monte Pacific, with SMC getting some $150-million out of the deal. It was an amicable parting, which San Miguel Corporation president Ramon Ang described as “is consistent with the original agreement that provided for a friendly process of disengagement by either party.”

    Again, let me make it clear, the sale of SMPFC is still just a wild rumor right now. But an acquisition of SMPFC, which includes popular brands such as Purefoods, Magnolia, Monterey, B-MEG, and many others, would be fit in well with the Campos family’s burgeoning food empire, which include Del Monte, UFC, Datu Puti, and Mang Tomas. The two parties seem to have a healthy relationship. A sale doesn’t sound so far-fetched, doesn’t it? For Purefoods fans: How does the Del Monte Fit 'N Right Slimmers sound to you?

    Curiously, the patriarch of the Campos clan, Jose Yao Campos, was also known to be a Marcos crony, like current San Miguel chairman Danding Cojuangco.
  • the_BuGsthe_BuGs PEx Veteran ⭐⭐
    lalagyan ng vitamins yung hotdog? :glee:
  • latundanlatundan PEx Influencer ⭐⭐⭐
    Ok lang mabenta basta intact yung team. Baka mapunta si kerby,pingris,james yap sa ginebra or san miguel gaguhan na yun.
  • Jay P. MercadoJay P. Mercado Moderator PEx Moderator
    Bugs,

    May vitamin-enriched hotdog na actually ang Purefoods. What I know is that Purefoods and Swift were the first to introduce this, probably to reduce the impression that hotdogs are generally junk meals that have no nutritional value.

    I won't be surprised if the Campos Group decides to buy San Miguel Purefoods since this is indeed logical for them in their continued effort to expand in the food manufacturing business. Note that Del Monte, a company previously owned by the Lorenzo Group, was sold to the Campos to the surprise of many as people thought it would have been more logical for San Miguel, being a food conglomerate that they are, to secure this. The Lorenzos, because of this sale, was awashed with cash that they decided to invest in another food business arm - the restaurant industry. They own Pancake House and because of the Del Monte sale, was able to secure Teriyaki Boy, Dencio's Grill, and Le Couer De France one after another.

    But the lingering question would be: will part of the sale of Purefoods, Ginebra and San Miguel include the PBA franchise? When San Miguel invested by buying into the Cosmos Group of Joey Concepcion, part of the sale included the franchise of the company. Which explains why San Miguel had 4 teams at one time in the PBA - SMB, BGK, Purefoods and Pop Cola. They later renamed the Pop Cola Panthers to Coca-Cola Tigers to re-emphasize the leading brand. Later on, when they sold their shares to Coke Atlanta, part of the deal included the PBA franchise. Which explains why the brand Coke was retained instead of a continuation of a 4th SMC team.

    My best guess is that Ramon Ang would continue maintaining the three PBA franchises even if they would be sold to other companies. Petron Philippines is practically a lock already since SMC recently acquired majority ownership of the oil firm. Its telecom firm would also be another option for them, that is, if the PBA decides to allow direct competitors playing against each other in the PBA.

    There are several precedents regarding direct competitorship. During the pioneer years, the 7/UP Uncolas of the Senens and Royal Tru Orange of San Miguel were both playing in the PBA simultaneously. Purefoods and Swift were also direct competitors that played against each other in the PBA while featuring their respective hotdog brands. Prior to that, Gold Eagle Beer of SMB and Beer Hausen of Lucio Tan, from 1984 to 1985, were both playing in the PBA. And when the PBA decided to have 8 teams in 1990, they brought in Diet Sarsi (RFM Group) and 7/UP (Lorenzo Group) in the fold.
  • color_s_Kaboinkcolor_s_Kaboink PEx Influencer ⭐⭐⭐
    jaemark wrote: »
    color_s_Kaboink, natuwa ako dun sa rumor mo. pinatulan ko. eto yung connect:

    A totally unsubstantiated rumor about a potential buyer for Purefoods: The Unilab family

    http://firequinito.com/archives/339-A-totally-unsubstantiated-rumor-about-a-potential-buyer-for-Purefoods-The-Unilab-family.html

    While trolling around the Pinoy Exchange forums, I came across an interesting discussion about my previous post about the San Miguel Corporation possibly selling control of some of its core businesses in food, beer, and liquor. The last post, about a potential buyer for the San Miguel Pure Foods Corporation, caught my eye, and got my wheels turning:

    i have a source na baka daw ibenta ang pfoods sa unilab. not sure about pero parang ganun daw. though nagtataka ako ang layo ng unilab para mag venture sa food industry. i asked him if what will happen to pfoods once mangyari nun.. no answer siya


    At first glance, it doesn’t seem to make sense; why would Unilab, the country’s biggest pharmaceutical company, be interested in Purefoods?

    Well, a heir of the Campos clan, Joselito “Butch” Campos, started his own food conglomerate called NutriAsia. It initially started small, producing sauces, ketchup, and vinegar.

    The company, however, set its sights to something bigger when in 2005, Campos tried to purchase Del Monte Pacific. However, rumor had it that the Campos family was unwilling to fund the acquisition with Unilab money. Meanwhile, Del Monte Pacific had another buyer interested: First Pacific, which you may remember as the investment company headed by one Manuel V. Pangilinan.

    Campos, however, succeeded in acquiring Del Monte Pacific by forming a joint venture with San Miguel Corporation to buy the company. But the partnership did not last long. In 2007, Butch got clearance to finally dip into family funds to buy out the whole San Miguel stake in the JV and take control of Del Monte Pacific, with SMC getting some $150-million out of the deal. It was an amicable parting, which San Miguel Corporation president Ramon Ang described as “is consistent with the original agreement that provided for a friendly process of disengagement by either party.”

    Again, let me make it clear, the sale of SMPFC is still just a wild rumor right now. But an acquisition of SMPFC, which includes popular brands such as Purefoods, Magnolia, Monterey, B-MEG, and many others, would be fit in well with the Campos family’s burgeoning food empire, which include Del Monte, UFC, Datu Puti, and Mang Tomas. The two parties seem to have a healthy relationship. A sale doesn’t sound so far-fetched, doesn’t it? For Purefoods fans: How does the Del Monte Fit 'N Right Slimmers sound to you?

    Curiously, the patriarch of the Campos clan, Jose Yao Campos, was also known to be a Marcos crony, like current San Miguel chairman Danding Cojuangco.

    :D
    love your website. sometimes i get some juicy news there (of course sinasabi ko galing sa yo yun hehe)
    hehe hesitant ako sabihin to (unilab thing) since malalaman agad yung source ko haha i've talked to him about it ... yun ang nakuha niyang info but of course nothing is final pag dating sa mga business deals pede magbago last minute.

    anyway i think ... smc will retain it's 3 franchises sa league :lol:
  • dufresneandydufresneandy PEx Veteran ⭐⭐
    sana matuloy at sana kung mapagdesiyunan ng smc na mag maintain ng isang team, wag na wag sana ang ginebra, smb or pf lang.

    para malaman tatag ng barangay kahit ala smc to back them up!
  • fernando_hierrofernando_hierro Member PEx Expert 🎖️
    Ginebra shares will be sold to SMB...SMC will exercise option to buy Petron...Purefoods is for sale so Petron might replace Purefoods...
  • color_s_Kaboinkcolor_s_Kaboink PEx Influencer ⭐⭐⭐
    TYCOON EDUARDO “DANDING” COJUANGCO JR. has made plans to unload his entire 15-percent equity interest in San Miguel Corp. in favor of trusted allies, boosting expectations that the 74-year-old businessman may soon bow out as chair of the diversifying food and beverage conglomerate.

    Based on a recent regulatory filing, 44 corporate stockholders have signed an agreement giving Top Frontier Investment Holdings Inc. an option within two years to buy a total of 493.37 million shares in San Miguel for about P37 billion. A check with official company documents showed that the selling companies were all part of the Cojuangco or “ECJ” group of companies.

    Even when the option has yet to be exercised, the agreement allowed Top Frontier to assume voting rights over the ECJ block, which was committed for sale at the same price of P75 a share that the former recently paid to minority shareholders under a tender offering.

    Top Frontier, which is 49-percent owned by San Miguel itself as represented by Cojuangco’s trusted lieutenant and concurrent company president Ramon S. Ang and 51-percent controlled by an investor group that included former Trade Minister Roberto V. Ongpin, Iñigo Zobel and condiments king Joselito Campos, was given “continuing” and “exclusive” option to purchase and acquire the ECJ shares until Nov. 19, 2012.

    The holding firm has the right to acquire from ECJ companies 476.72 million class “A” (reserved for Filipinos) and 16.65 million class “B” (open to local and foreign investors) shares during the period. To ensure and preserve the option, the custody and possession of the stock certificates covering the option shares have been delivered to a trustee mutually designated by the corporations and the option holder, the official filing said.

    At present, Top Frontier is the beneficial owner of 54.6 percent of San Miguel’s class “A” shares and 55.8 percent of class “B” shares. It had voting rights to a total of two billion shares representing about 89.5 percent of the beer-based giant’s outstanding capital stock.

    Each of the 44 ECJ companies that committed to sell their shares to Top Frontier under the option agreement owned less than 5 percent of San Miguel.

    Some analysts said Cojuangco’s exit from San Miguel could be part of the tycoon’s estate planning. The strategy was seen similar to the route taken by some retiring American tycoons who cashed out their controlling stake in the big companies they had founded in order to distribute proceeds to their heirs upon retirement while at the same time making sure that management would be inherited by people deemed most fit to continue running the company.

    In this case, some analysts said the consolidation of a controlling stake in San Miguel, which Cojuangco has controlled since 1998, would likely keep the conglomerate’s president Ang, 56, at the helm of management with formidable allies like the 73-year-old Ongpin, the 53-year-old Zobel and 58-year-old Campos. Also one of the young lieutenants in the group is the 46-year-old Eric Recto, Ongpin’s nephew, who now sits as president of Top Frontier and Petron Corp.


    got this from PHILIPPINE DAILY INQUIRER
    Cojuangco unloading stake in San Miguel


    By Doris Dumlao
    Philippine Daily Inquirer
    First Posted 23:42:00 05/10/2010
  • versa17versa17 PEx Influencer ⭐⭐⭐
    Ginebra shares will be sold to SMB...SMC will exercise option to buy Petron...Purefoods is for sale so Petron might replace Purefoods...

    Nabili na ng SMC ang Petron. sa katunayan yung bldg ng petron sa Makati buendia, wala na dun ang petron people. nasa Ortigas na kasama ng iba pang SMB.
  • fernando_hierrofernando_hierro Member PEx Expert 🎖️
    yes, i know, we trade with pcor's treasury...
  • color_s_Kaboinkcolor_s_Kaboink PEx Influencer ⭐⭐⭐
    i have a source na baka daw ibenta ang pfoods sa unilab. not sure about pero parang ganun daw. though nagtataka ako ang layo ng unilab para mag venture sa food industry. i asked him if what will happen to pfoods once mangyari nun.. no answer siya

    kaboom hehe :D
  • fernando_hierrofernando_hierro Member PEx Expert 🎖️
    campos of unilab own del monte in the philippines and the ufc brands
    sikat sila sa unilab
    pero di alam ng marami na nasa food manufacturing din sila

    tropa ni RSA ang mga campos, inigo zobel and bobby ongpin
    sila yung top frontier na behind sa petron

    pero ang totoo dyan, ang pinaka godfather dyan
    yung tunay na may ari ay yung dating lakan sa ilog...
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