This question cropped up after the government, through the Presidential Commission on Good Government (PCGG), announced plans to wrest control of San Miguel Corp. (SMC), which holds its stockholders meeting today to elect a new board of directors.
PCGG Chairman Haydee Yorac announced last week that they were wooing retail magnate Henry Sy to their side to take control of SMC, which was part of the assets seized by the government in 1986 after a revolt toppled the late dictator Ferdinand Marcos.
Analysts say Sy’s vote will be crucial in the election of new officers of SMC, one of the Philippines’ largest companies. Of the 15 SMC board seats, Cojuangco controls eight, one of which belongs to Sy, who acquired a 6.2 percent stake last year.
The remaining seven seats are held by the government. The PCGG has five while the Social Security System and the Government Service Insurance System have one nominee each.
Yorac said the government only needs one vote to seize control. It wants to gain control of SMC to protect its interests in the firm and have the upper-hand in the decision-making. The government, she said, thinks that it has a majority stake in SMC.
One financial analyst, however, believes that Sy would never vote in favor of the government since he invested in SMC on the prodding of Cojuangco who wanted another ally to cement his hold.
PCGG nominees already vote the 27-percent bloc of SMC shares listed under the Coconut Industry Investment Fund companies.
Yorac said that should government fail to seize control of the corporation, the PCGG would appeal to the Sandiganbayan to finally resolve the ownership of the aggregate 47 percent of the conglomerate, which shares the government claims Cojuangco and other alleged dummies for Marcos acquired using tax levies imposed by Marcos on coconut products.
The dispute over who controls SMC dates back to the Marcos dictatorship, when Cojuangco first gained control of a 47-percent block of SMC shares. Marcos fled in 1986 along with Cojuangco. The new Corazon Aquino administration seized control of the shares and SMC has been a political tug-of-war ever since.
As SMC chairman, Cojuangco steered the food and beverage firm to become one of Asia’s best performing companies, posting a P7.37-billion net income last year, up by seven percent from the previous level.
When Cojuangco returned as SMC chairman in 1998, he focused on core businesses and areas that demanded attention.
"The new chairman came in with an open mind and a more objective view of the businesses involved. He came in at the right time with a strong will to implement the needed reforms," SMC president Ramon Ang said in an earlier interview.
Operationally, these measures included improving overall cost structure, rationalizing international operations, expanding the dealership network and improving trade incentives.
SMC also hopes to achieve further growth from the expansion of its existing businesses and from acquiring new, inter-related operations. Its goal is to transform its existing food operations into a major branded food company. — With Sheila Crisostomo