Ang-led private firm buys P300-M SMC shares

MANILA, Philippines - A private firm led by San Miguel Corp. (SMC) president Ramon S. Ang bought nearly P300 million worth of SMC shares last week, just as the diversified conglomerates’ stocks were being battered by market speculation.

This move is seen as SMC executives’ vote of confidence on the conglomerate despite negative market sentiments, an analyst said.

In a disclosure, the corporate powerhouse said Privado Holdings Corp. bought 3.44 million common shares of SMC worth P297.89 million. The shares were acquired from the open market at P82.60 to P88.06 apiece from July 18 to 25.

Privado Holdings, which is not one of SMC’s Top 100 stockholders as of end-June, is controlled by Ang with a 62.5-percent stake. The remaining 37.5 percent is owned by Thomas Tan, a board director of SMC.

“Basically, it goes to show the seriousness of SMC’s major stakeholders. It’s a vote of confidence,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

“They are trying to strengthen investor confidence in the stock given their serious commitment by buying more shares,” he said.

On July 18, SMC’s shares lost as much as 9.6 percent to P76.40 in early trades before recovering in the afternoon to settle 1.49 percent higher at P85 apiece.

SMC clarified it was not the company referred to by the International Monetary Fund, which warned that a “highly leveraged conglomerate” is in danger of default, although that risk is currently “low.”

The market’s panic prompted Ang, SMC’s chief operating officer, to announce that the conglomerate is ready to buy back shares and that it is in a healthy financial condition.