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“How shall freedom be defended? By arms when it is attacked by arms, by truth when it is attacked by lies, by faith when it is attacked by authoritarian dogma. Always, in the final act, by determination and faith.”

― Archibald MacLeish

Saturday, April 5, 2014

Ramon Ang: What makes San Miguel Corporation so different from other top conglomerates?

Top RP Conglomerates
  • Ayala's Perceived Difference vs. Other Conglomerates "NURTURING LEADERS"-It is well known that in the Ayala group, individual professional excellence has always been a priority, partly the result of a nearly two-century track record of consistently upholding the values of talent, ethics, and reputation. But aside from honored tradition, there are management’s deliberate undertakings. 
  • SM Perceived Difference Vs. Other Conglomerates: "SYNERGY"-SM is a highly focused and synergistic group that continues to expand at an unparalleled scale in the Philippines with the view to tap into the growth potential of its core markets.
  • JG Summit's Perceived Difference Versus Other Conglomerates: "Long-term Vision and Risk-Taking"-From Gokongwei's humble beginnings, he grew his fortunes on hard work and frugality while taking calculated risks and embracing competition. 
What makes San Miguel Corporation so different 
from other top conglomerates?
People keep on shouting the transparency issue because our competitors and copycats keep pushing us to divulge what we will buy and what we will do,” he says. “It’s driven by envies.” Ramon Ang
“We always follow the rules.” Ramon S. Ang
SMC Corporate Governance (From SMC Website)
San Miguel has had a long-standing commitment to good corporate governance practices and taking a leadership role in instituting and maintaining practices that represent strong business ethics. These practices provide an important framework within which the Board of Directors and management can pursue the strategic objectives of the Company and ensure its long-term vitality for the benefit of stockholders.
Standard & Poor’s has its own beefs with San Miguel. It downgraded the firm’s debt-rating outlook to negative from stable in May. The rating company said San Miguel underestimated debt by not adequately reflecting the financial lease payments of its new power business, SMC Global Power Holdings Corp. San Miguel also counted some preferred shares as equity, rather than debt, S&P said. From Bloomberg News

What is really the strategy of San Miguel under Ramon S. Ang?
High Stakes"Buy N Sell"?
Cojuangco and Ang have  been on an incredible international buying and shopping spree. It's one for Ripley's Believe It or Not!
What are the strategic reasons for this approach?
Coca Cola
By the end of 1998, shuffling assets to find the ideal portfolio and looking to restructure operations and focus on core competencies, Cojuangco sold San Miguel's stake in Coca-Cola Beverages, Coca-Cola Amatil’s bottler in Europe.
In February 2001, San Miguel once again regained control of Coca-Cola Bottlers Philippines, Inc. 
In 2006, San Miguel has sold its 65% stake at its Coca-Cola Philippine venture (including its subsidiaries Cosmos Bottling and Philippine Beverage Partners) to The Coca-Cola Company (TCCC) for $590 million. From Wikipedia
National Foods Australia
In 2004,it bought 51 percent of Berri Ltd., Australia's top juicemaker, for $97.9 million.
In 2005, the company made its biggest overseas acquisition with the takeover of National Foods Ltd., Australia's largest publicly traded dairy, which it bought for P80.38 billion. 
In 2005, San Miguel merged National Foods' operation with Berri.
In November 2007, SMC also sold National Foods to Kirin for ¥294 billion. From Wikipedia
J.Boag
San Miguel's first major acquisition under Cojuangco and Ang was Australian boutique brewer J. Boag and Son for A$96 million in 2000.
In November 2007, SMC sold Boag's to Lion Nathan for A$325 million. From Wikipedia
Del Monte
In 2005, San Miguel completed its $420-million purchase of Singapore-based Del Monte Pacific Ltd., the region's largest pineapple canner.From Wikipedia
In 2007,  San Miguel sold its entire stake in joint venture company NutriAsia San Miguel Holdings Ltd. to the NutriAsia Group. NutriAsia San Miguel Holdings Ltd. owns 100% of NutriAsia Pacific Ltd. which in turn owns 84.5% of Del Monte Pacific, Ltd. 
(DMPL). from Wikipedia
Meralco
In rapid succession beginning late 2008, SMC bought up shares in power retailer Meralco, paid up for the option to own oil refiner Petron, and acquired a majority stake in Liberty Holdings, a Filipino telco co-owned by Qatar Telecom. From Wikipedia
In 2013, the Gokongwei group bought the remaining 27.1-percent stake in Manila Electric Co. held by the San Miguel group.


San Miguel Beer
In 2009, Japanese brewing giant Kirin Holdings Co. Ltd. sealed a deal with San Miguel Corp. for the purchase of a 43.25-percent stake in the latter's flagship domestic brewery firm for P58.9 billion and the possible takeover of San Miguel's international beer operations.
In 2010, chairman and chief executive officer Eduardo Cojuangco Jr., told the BusinessMirror that he was open to selling SMC’s 51% stake in San Miguel Brewery “at the right price.” The statements were made in reaction to comments by Kirin, Japan’s largest beer company and owner of 48% of San Miguel Brewery, which said earlier this month that it would like to take a majority position in the local brewer if the parent firm is willing.