"Definitely not this year. If we will be able to resolve all the issues in the latter part of the year, we will probably be selling them (SMC shares) by next year," Finance Undersecretary Jay Singson told reporters over the weekend.
Singson admitted that the NG would still have to study all its options with regard to the privatization of the publicly-listed SMC.
"We have to determine first what’s the best way to privatize. Once we got the plan in place, we can proceed with the sale," Singson said.
But Singson pointed out that the SMC privatization process would also need an approval from the Sandiganbayan. "This is the reason why the timing is not in our control. We have to secure appropriate approval which will probably take a while," he said.
The finance official said the Department of Finance (DOF) would also need to talk to other government agencies which also have stakes in the food and beverage giant.
"We can either group our shares together and sell as a block or dispose only the shares handled by the PCGG (Presidential Commission on Good Government)," he said.
Singson said they would probably get the services of a financial expert to facilitate the sale.
"Transaction this big would need a financial advisor. They can also suggest what kind of privatization scheme to use," he said.
The government owns over 33-percent stake in SMC making it the single largest stakeholder in the firm. The firm’s market capitalization is estimated at $4 billion of which $1 billion or 27 percent is accounted for by the Coconut Industry Investment Fund (CIIF).
The government earlier disclosed plan to sell its stake in SMC to further boost agriculture-related enterprises in the country.
President Arroyo had instructed then Finance Secretary Cesar Purisima to combine all of the government’s holdings in SMC and offer it as one block to investors to raise funds for the development of the country’s coconut industry.
Japan’s No.2 brewer Kirin Brewery holds a 20-percent stake in SMC while mall tycoon Henry Sy of SM Prime Holdings owns about six percent.
Last year, the Supreme Court lifted restrictions on a disputed 27-percent stake which had held up SMC plans to raise its capital.
The court ruled that the 27 percent, acquired through illegal levies imposed on coconut products by the administration of ex-president Ferdinand Marcos, was owned by the country.