Cage exec unperturbed on possible sale of Purefoods

The possible sale of Purefoods, the food company owned by San Miguel Corporation, to another giant firm won’t have major effects on B-Meg Derby Ace Llamados’ campaign in the Philippine Basketball Association.

That’s unless the buyer will acquire the lock, stock and barrel of the well-known food company.

Rene Pardo, B-Meg Derby Ace’s board governor and incoming chairman in the PBA, told GMANews.TV that there are a lot of things to consider in determining whether the franchise will remain with the present owner or be shipped out to another taker.

“It depends if the buyer will acquire Purefoods via total buyout or if the company buys majority of the stock and expressed interest on acquiring the team as well," said Pardo.

B-Meg Derby Ace is an animal feed-product under San Miguel/Purefoods company. San Miguel/Purefoods company is the food subsidiary of its mother company San Miguel Corporation.

B-Meg Derby Ace’s franchise is under the San Miguel/Purefoods company, according to Pardo.

Curiuously, Pardo has been from one company to another.

He was team manager of Purefoods when the company, including the basketball team, was acquired by San Miguel Corporation in 2001.

The acquisition of Purefoods gave San Miguel the luxury of owning three teams in the PBA with Ginebra being the other sister squad.

Purefoods, though, was not given voting rights, until a move initiated by outgoing PBA chairman Lito Alvarez allowed the well-known processed meat producer of securing voting rights, which it didn’t have the past 10 seasons.

But even if a company acquires the lock, stock and barrel of Purefoods, the new firm will still need approval of the board, if in case it wants to join the PBA.

“The PBA is an association and we act collectively. Just like in the homeowners association, not everyone can simply put an establishment and reside there. If a regular home owner complained and told others he doesn’t want to be your neighbor, then it will certainly need the approval of others," said Pardo.


URC to takeover Purefoods?

One among the companies which expressed interest in acquiring Purefoods is JG Summit Holdings, the diversified conglomerate built by business tycoon John Gokongwei.

A highly-placed source from JG Summit Holdings told GMANews.TV that there are ongoing negotiations between their company and San Miguel.

The source added that the enterprise value of Purefoods is $1.8-billion in estimates made by San Miguel. JG Summit is planning to include Purefoods as a part of their processed meat division for Universal Robina.

“In the scale of 1 to 10, I think we’re still halfway," said the source. “JG Summit really wants to have control of the Purefoods company, not just a share of stock, but total control of the company."

Whether URC will express interest in acquiring Purefoods’ basketball team if ever it buys the company from San Miguel remains to be seen.

“Who knows, it might use the basketball franchise as a way to promote its lesser known brands if ever the sale of Purefoods will push through," said the source.

The Gokongwei group, which owns the Consolidated Food Corporation that produces Great Taste and Presto among others, is one of the founding members of the PBA.

The group then changed CFC and named it to Universal Robina, which is named after John’s daughter Robina Gokongwei.

In 1992, Gokongwei sold its PBA franchise to Sta. Lucia Realty owned by Exequiel Robles, leaving the PBA with only San Miguel Beer as the only pioneering member of the league.