SAN MIGUEL SAYS IT'S NOT THE CONGLOMERATE CITED BY IMF IN REPORT
(The following press release from San Miguel Corp. was received by e-mail. The sender verified the statement.)
San Miguel Corporation (SMC) today debunked rumors linking it to a recent news article entitled “IMF warns of conglomerate’s default.” “We would like to clarify that the conglomerate, which was the subject of the news article that referred to an IMF report dated April as the source, was not SMC. It is unfortunate that certain people have taken advantage of that information to fabricate and spread malicious stories and sow panic in the market to the detriment of our shareholders and the investing public, in general,” Ramon S. Ang, SMC president and COO said.
He firmly maintained his optimistic outlook on the company’s prospects for further growth, considering the Company’s strong revenues and consistent profitability that underpin its robust balance sheet.
As of the first quarter of this year, SMC’s consolidated cash and cash equivalent stood at P152.3B while its gearing ratio, at 3.1x net debt to ebitda, is lower than the 5.5x stipulated in its loan covenants. With respect to the IMF report, the company pointed out that:
1. No specific conglomerate was mentioned in the report.
2. The report does not even remotely suggest that a specific conglomerate is on the verge of default. In fact, it categorically stated that the “likelihood of a default happening is low.”
3. The report was written as part of the regular Article IV consultations with sovereign members. IMF came out with such to outline possible scenarios and appropriate sovereign responses.
Mr. Ang added that in view of this unjust assault on SMC’s financial reputation, management shall hold accountable, through all possible means, individual or individuals who directly or indirectly fueled these unwarranted speculations. He said the Company would continue to drive value for its shareholders and exhaust every means to protect the value of their investments.
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