MANILA, Philippines - A group representing more than one million farmers lauded the Supreme Court’s recent decision to allow the conversion of sequestered San Miguel Corp. (SMC) common shares into preferred shares, saying that this is for the betterment of the coconut industry.
In breaking his silence, Pambansang Koalisyon ng Samahang Magsasaka at Manggagawa sa Niogan (PKSMNN) president Efren Villaseñor from Quezon lashed at ‘misguided’ minority coconut farmers groups and those who claim to have their best interests in mind.
“These people are living in the past and refuse to move forward. They best represent the backward thinking that is prevalent in the Philippines today,”said Villaseñor in the vernacular as he and his members welcomed the High Court’s decision that was released last Sept. 17.
“It is sad that people continue to feed the minds of some of our fellow coconut farmers with misguided notions, taking advantage of them as a result. We refuse to be drawn to the politicking of these people,”Villaseñor explained, adding that “ My group, which represents the biggest part of coconut farmers is confident that the conversion of the SMC shares is all for the best.”
Villaseñor said it is not right to question the wisdom of the High Court, which said that although the nature of shares would be different, the said holdings that represent 24 percent of SMC’s total outstanding capital, will bring in bigger earnings.
Once converted into preferred shares, it is estimated that the 750 million shares will earn P4.5 billion yearly, which according to the SC shall be deposited in an escrow account with the Land Bank of the Philippines or the Development Bank of the Philippines until the ownership issue is resolved.
The said shares are being held in trust by the PCGG on behalf of the 14 Coconut Industry Investment Fund (CIIF) holding companies.
The group headed by former Senators Jovito Salonga and Wigberto Tañada are contesting the conversion based entirely on the issue of voting rights, which allowed the government to field appointees that are merely warm bodies in the SMC board of directors.
SMC came up with the share-swap offer to all of its common share holders to assure them of profits as the food and beverage company have entered businesses like utilities and petroleum. As opposed to the uncertain amount of common share dividends, the preferred shares ensure a fixed dividend rate of eight percent per annum.