MANILA, Philippines—A group led by former Trade Minister Roberto Ongpin, businessman Iñigo Zobel and condiments king Jose Campos bought on Friday a 28-percent stake in diversifying San Miguel Corp. for P64.3 billion.
Their holding company, Top Frontier Investment Holdings, Inc., acquired 857.12 million SMC shares from the San Miguel Retirement Plan at P75 per share.
Top Frontier, was incorporated in March 2008 with Ongpin, Zobel and Campos as major shareholders, together with Master Year Limited, a foreign-owned company. Ongpin, together with Master Year Limited, holds about 20 percent in Top Frontier while Zobel and Campos each hold 40 percent.
Ongpin, Zobel and Campos were likewise the key players behind Global 5000 Investments Inc., a key ally of San Miguel in Manila Electric Co.
“The acquisition was funded through a combination of equity and foreign borrowings” Ongpin said in a press statement.
“SMC is a very sound investment, with a strong balance sheet to support the new business endeavors which are clearly the future engines of growth. We also recognize that SMC has a very strong management and highly competent people resource” he added.
While the acquired stake entitles Top Frontier to five board seats in SMC, Ongpin said it was the consensus of the Top Frontier shareholders to maintain the current composition of the SMC board.
Ongpin, via another entity Q-tech Alliance Holdings, Inc., earlier acquired another 20-percent in SMC stake from Kirin of Japan.
Given his participation in both companies, Ongpin has initiated discussions with the other shareholders of Top Frontier and Q-tech to consider the merits of a consolidation. Subject to the outcome of these discussions with the shareholders of both companies, a tender offer will be undertaken in accordance with law at a price of P75 per share.
“We have properly disclosed to SMC our participation in this acquisition. Our investment in SMC is a clear indication of our trust in the business and the current management. We expect it will be viewed in the same way by the investment community,” Ongpin noted.
