Wednesday, September 16, 2009

Mukhriz dan San Miguel Corp - Melayu `ketam batu dlm bakul'?

In response to articles in Malaysian Insider:

Mirzan says San Miguel stake is just business

Mirzan Mahathir appointed director on San Miguel Corp board

11 September 2009

The Editor,

The Malaysian Insider

I read with interest your article about my becoming a director of San Miguel Corporation (“SMC”). As you rightly pointed out, I sit on the board to represent an investment group, Q‐Tech Alliance Holdings Inc., that invested in SMC.

After being in the brewery business for more than 100 years, San Miguel has decided to shift its attention to the infrastructure, public utility and energy requirements of the Philippines.

Since Kirin Holdings of Japan acquired a significant direct ownership stake in the brewery division, this will result in a dramatic change in SMC’s revenue mix, with beverages expected to contribute
less than 15% of total sales by next year. This major diversification move, made possible by our taking over of Kirin’s 20% stake in SMC, starts a new era for San Miguel and is the principal reason for my involvement in the company.

Since the last quarter of 2008, SMC has bought an option to acquire a controlling interest in Petron Corp., the largest Philippine oil refiner which owns 1,400 retail stations, and a substantial equity stake in Manila Electric Co., the largest distribution utility in the Philippines that has a base of over 4.5 million
customers. Both these firms are publicly listed companies with annual revenues of US$4bn (RM 13.9bn) and US$5.6bn (RM19.4bn) respectively. SMC has also announced its intention to venture into the telecommunications industry through their stake in Liberty Telecom Holdings Inc. with Qatar
Telecommunications Co. to initially build a Wi‐Max network and potentially a full‐scale national cellular operation.

The company also recently won in a public auction, two major power plants with a combined generation capacity of 1,600 MW. Unfortunately, certain parties are keen to turn this exciting positive change in
a well‐managed Philippine corporation into an assault on the reputation of my father, even though he has nothing whatsoever to do with my business interests.

I can only provide a rational explanation for my actions and it would be a pity if facts are twisted to gain dubious points from a straightforward business decision. Your article covered the beverage aspects of San Miguel but ignored the company’s recent purchases and strategy moving forward.

As a Malaysian, I am looking forward to assisting San Miguel chart this new course and hopefully, its success will reflect well on our country and people.

Mirzan Mahathir

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