San Miguel Corp. (SMC) president Ramon S. Ang has consolidated his interest in the holding firm that controls 15 percent of the conglomerate, enabling him to boost his capability to raise fresh funds.
Ang bought out the 37.5 percent equity interest held by partner Thomas Tan in Privado Holdings Corp., SMC disclosed to the Philippine Stock Exchange Monday.
The acquisition gave Ang 100 percent control of Privado—the single biggest voting block in SMC with ownership of about 15 percent.
As a result of the acquisition, Ang also indirectly acquired indirect beneficial ownership of 13.82 million shares in SMC’s controlling stockholder Top Frontier Holdings Inc. through Privado.
Asked about the rationale behind his consolidation of interests in Privado, Ang said the block he acquired would serve as a “standby credit line.”
Earlier, Ang was reported to be in talks to personally acquire a substantial stake in broadcasting firm GMA Network Inc. (GMA 7).
Ang, however, kept mum on the developments concerning his potential entry as a new investor in GMA 7.
Most observers considered the consolidation to be a move that would allow Ang to obtain financial muscle to fund big projects.
In 2012, SMC chair Eduardo “Danding” Cojuangco Jr. sold his 15 percent stake in San Miguel Corp. to a group led by Ang for P37 billion.
After the Supreme Court upheld Cojuangco’s ownership of a significant stake in San Miguel, the tycoon was technically free to sell his shares, as intended, removing the political overhang that had hounded the conglomerate since the 1986 Edsa Revolution
At the time, the government claimed that Cojuangco’s interests in San Miguel was acquired using coco levy funds when he headed United Coconut Planters Bank. Doris C. Dumlao