No government takeover of SMC — Valencia

There is no intention on the part of the government to take over San Miguel Corp. because it continues to be a private company which has been performing very well, according to one of the nominees of the Arroyo administration to the company’s board of directors during its share holders meeting on May 3.

Former Social Security System chairman Renato Valencia declared yesterday on the program "Stockmarket Live" that San Miguel has been doing very well during the past many years, and has been hailed in the international business community as a most "admired company.

"Historically, San Miguel has always been a private company," Valencia said. "It will continue to be a private firm."

Valencia said the position of the government in being represented in the board of directors of San Miguel is also to help resolve this ownership issue.

Lawyer Ruben Carranza, a commissioner of the Presidential Commission on Good Government (PCGG), supported the position of Valencia, saying "San Miguel is recognized as the pride of Philippine business and Industry."

"I don’t think the government wants to change that (by taking over the company)," he explained. The views of Valencia and Carranza came a few days before the May 3 annual stockholders meeting of San Miguel Corp. where the legal question on the composition of the 15-man board of directors is expected to be resolved.

Meanwhile, San Miguel Corp. reported a recurring net income of P7.5 billion, an increase of 25 percent over the previous year’s P6.01 billion. Operating income amounted to P7.9 billion, 19 percent higher than the year-ago level of P6.7 billion. San Miguel’s consolidated net sales reached P88.7 billion, up 17 percent from P75.6 billion the year before.