Japan's Kirin buys San Miguel stake

The board of the Philippines' San Miguel Corporation yesterday approved a 15-per cent buy-in of Japanese brewer Kirin, thereby diluting the government's control of the food and beverage giant and possibly reducing a 29 per cent block owned by coconut farmers.

The Philippine government, which holds a 44-per cent stake in the conglomerate, did little to block the approval of the sale because five seats in the 15-member SMC board are still occupied by appointees of jailed former president Joseph Estrada.

When Estrada was ousted by a bloodless people's revolt in January, the government questioned the five directors' right to remain in the board, but the Supreme Court, citing a technicality, ruled they could stay until next year.

Legal analysts said, however, that the government could seek a court injunction on the sale because it may reduce the value of the 29 per cent block owned by small coconut farmers under the controversial Coconut Industry Investment Fund.

The Social Security System and the Government Service Insurance System, both state-owned pension funds, own more than 14 per cent of SMC, bringing the government's holdings to almost 44 per cent.

Our Manila Correspondent Estrella Torres adds: Meanwhile, former Marcos crony and industrialist Eduardo 'Danding' Cojuangco Jr., SMC chair, managed to dispose of 15 per cent unissued shares worth $540 million of the food and beverage conglomerate, despite strong opposition and last-ditch efforts by the government to stop the sale.