Court halts Cosmos sale; RFM, SMC unfazed
September 14, 2001 | 12:00am
The Quezon City Regional Trial Court issued yesterday an order temporarily blocking the sale of some assets of Cosmos Bottling Corp. to a joint venture led by food and beverage giant San Miguel Corp. (SMC).
RFMCosmos' parent firm and SMC, however, are unfazed by the lower courts decision, saying that discussions for the purchase of RFMs shares in Cosmos will proceed despite the hurdles posed by the case filed by Iloilo Rep. Augusto Syjuco.
RFM is in the final stretch of the sale of the countrys second largest soft drinks firm to a joint venture of SMC and Coca-Cola for P15 billion.
RFM chief operating officer Felicisimo Nacino said the court order will not affect the sale of Cosmos to Coca-Cola Bottlers Phils., the joint venture of SMC and Coke.
He said the disputed Jaz Cola assets, which contribute 10 percent to Cosmos total sales and eight percent to net income, will be excluded.
"Weve taken a look at the injunction order. Basically, it seeks to stop the sale of Jaz Cola assets to San Miguel until the main case is heard," Nacino said.
"The main case seeks to rescind the agreement on the sale of Jaz Cola to Cosmos five years ago. It doesnt really matter to San Miguel because as far as San Miguel is concerned, its buying Cosmos because of Cosmos and not because of Jaz," he explained.
RFM has said it hopes to complete the sale by the end of this month.
Trading of RFM and Cosmos shares will continue after the Philippine Stock Exchange (PSE) found no evidence to show that company majority owners engaged in price manipulation and violated disclosure and insider trading rules.
In a letter to Syjuco, PSE president Ramon Garcia said the bourse will not suspend the companies shares. "At this point in time, no findings of violations have been made, although we are continuing to make the necessary inquiry," Garcia said.
Garcia said the PSEs compliance and surveillance units had monitored trading activities of RFM and Cosmos beginning June up to the present following Syjucos allegations of price fixing and insider trading.
The listings and disclosure unit also looked into Syjucos claim that RFMs plan to sell Cosmos to SMC was not immediately disclosed, according to the PSE president.
Garcia likewise informed Syjuco that the board of governors of the exchange has yet to decide on the solons request for an audience with them.
RFMCosmos' parent firm and SMC, however, are unfazed by the lower courts decision, saying that discussions for the purchase of RFMs shares in Cosmos will proceed despite the hurdles posed by the case filed by Iloilo Rep. Augusto Syjuco.
RFM is in the final stretch of the sale of the countrys second largest soft drinks firm to a joint venture of SMC and Coca-Cola for P15 billion.
RFM chief operating officer Felicisimo Nacino said the court order will not affect the sale of Cosmos to Coca-Cola Bottlers Phils., the joint venture of SMC and Coke.
He said the disputed Jaz Cola assets, which contribute 10 percent to Cosmos total sales and eight percent to net income, will be excluded.
"Weve taken a look at the injunction order. Basically, it seeks to stop the sale of Jaz Cola assets to San Miguel until the main case is heard," Nacino said.
"The main case seeks to rescind the agreement on the sale of Jaz Cola to Cosmos five years ago. It doesnt really matter to San Miguel because as far as San Miguel is concerned, its buying Cosmos because of Cosmos and not because of Jaz," he explained.
RFM has said it hopes to complete the sale by the end of this month.
In a letter to Syjuco, PSE president Ramon Garcia said the bourse will not suspend the companies shares. "At this point in time, no findings of violations have been made, although we are continuing to make the necessary inquiry," Garcia said.
Garcia said the PSEs compliance and surveillance units had monitored trading activities of RFM and Cosmos beginning June up to the present following Syjucos allegations of price fixing and insider trading.
The listings and disclosure unit also looked into Syjucos claim that RFMs plan to sell Cosmos to SMC was not immediately disclosed, according to the PSE president.
Garcia likewise informed Syjuco that the board of governors of the exchange has yet to decide on the solons request for an audience with them.
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