Cojuangco takes over as chairman of Pure Foods

San Miguel Corp. has finalized yesterday its takeover of the Ayala-owned Pure Foods Corp. after completing the special block sale at the Philippine Stock Exchange (PSE) and subsequently installing its own people to the Pure Foods board.

In a disclosure to the PSE, SMC corporate information and chief finance officer Ferdinand Constantino said the sale of the Ayala’s 93.98 percent stake in Pure Foods was closed and completed with the special block sale of over 53 million shares worth P6.579 billion.

With the sale, SMC immediately effected the overhaul of Purefoods’ nine-man board of directors. Sitting as the company’s new chairman is SMC chairman and CEO Eduardo Cojuangco Jr. while La Tondeña Distillers president and COO Enrique Gomez assumes the post of Pure Foods president.

Joining Cojuangco and Gomez at the Pure Foods board are SMC vice chairman Ramon Ang; SMC president and COO Francisco Eizmendi Jr.; SMC treasurer Ferdinand Constantino; SMC vice president for corporate planning and development Ma. Belen Buensuceso; SMC vice president for corporate technical services Lubin Nepomuceno; San Miguel Food Group president Arnaldo Africa; and Francisco Alejo III, the only "outsider" from the group, having been associated with Pure Foods as president of the joint venture meat processing firm Pure Foods-Hormel.

The appointment of Gomez and Africa into Pure Foods also created a minor realignment in their positions. Africa will now take over Gomez’s post at La Tondeña, SMC’s liquor subsidiary, while Gomez will handle the San Miguel Food Group in a concurrent capacity as Pure Foods president.

Upon closing of the sale of Ayala’s holdings in Pure Foods, a tender offer at the same prices of P124 per share will be made by SMC to the remaining shareholders in accordance with the Securities and Exchange Commission.

Under Sec. 19 of the SEC, any person or group intending to acquire at least 15 percent of any class of equity security of a listed corporation is required to make a tender the same offer to buy out the remaining stockholders.

The merger of the two companies’ food and allied operations will fortify SMC’s position as the undisputed market leader in the country’s food industry, commanding over two-thirds of the refrigerated/processed meat market and over a third of the poultry and feeds industries.