SMC’s Ramon S. Ang FILE PHOTO
MANILA, Philippines — Conglomerate San Miguel Corp. is planning to take control of affiliate Eagle Cement Corp. through a P97-billion deal as billionaire Ramon S. Ang consolidates his businesses.
SMC said in a stock exchange filing on Tuesday, its board of directors and the related party transaction committee authorized the acquisition of 88.5 percent of Eagle Cement, a publicly listed cement maker, at the approved price of P22.02 per share.
This was 43 percent higher than Eagle Cement’s last closing price of P15.40 per share. SMC will also launch a mandatory tender offer to Eagle Cement’s minority stockholders.
Ang is president and chief operating officer of SMC, one of the country’s biggest companies with businesses spanning food, drinks, power and infrastructure.
Ang is also chair of Eagle Cement, which is led by his son John Paul Ang, the company’s president and CEO.
In the disclosure, the board authorized SMC’s management to negotiate and enter into a share purchase agreement with Eagle Cement’s stockholders, including controlling stockholder Far East Holdings Inc., which is owned by Ang.
SMC said both Ramon Ang and John Paul Ang “did not did not participate in the approval by the board of directors of the corporation of the proposed acquisition.”
It added the deal will “trigger notification and clearance with the Philippine Competition Commission.”
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