RFM–Cosmos' parent firm– and SMC, however, are unfazed by the lower court’s decision, saying that discussions for the purchase of RFM’s 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 country’s 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.
"We’ve 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 doesn’t really matter to San Miguel because as far as San Miguel is concerned, it’s 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 PSE’s compliance and surveillance units had monitored trading activities of RFM and Cosmos beginning June up to the present following Syjuco’s allegations of price fixing and insider trading.
The listings and disclosure unit also looked into Syjuco’s claim that RFM’s 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 solon’s request for an audience with them.