MANILA, Philippines – Ramon Ang and his family are consolidating business interests through San Miguel Corporation’s (SMC) acquisition of Eagle Cement for almost P97 billion.
The SMC board on Tuesday, October 4, approved the acquisition of 88.5% or 4.4 billion shares of Eagle Cement at P22.02 per share.
This is a 42.9% premium from Tuesday’s closing price of P15.40 a share. Shares of Eagle Cement jumped 20% on Wednesday.
Eagle Cement’s selling shareholders include Ang and his children, Eagle Cement president and chief executive officer John Paul Ang and chief finance officer Monica Ang-Mercado, as well as Far East Holdings Incorporated (FEHI). FEHI is majority owned by Ramon Ang.
Ang, who is the president and chief executive officer of SMC and chairman of Eagle Cement, did not participate in the SMC board’s deliberations.
Eagle Cement’s income reached P2.97 billion in the first six months of 2022, lower by 19.7% than last year’s P3.7 billion.
Revenues in the first semester reached P13.68 billion, 23.7% higher than last year’s P11.06 billion.
Meanwhile, SMC is one of the largest and most diversified conglomerates in the Philippines by revenues and total assets, with sales equivalent to approximately 4% of the Philippines’ gross domestic product in 2020. – Rappler.com