SMC denies default rumors


Diversified Conglomerate San Miguel Corporation (SMC) denied rumors that it is on the verge of default risk.

“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,” Ramon Ang, SMC president and chief executive officer said.

Ang was referring to the article written by Rigoberto Tiglao titled “IMF warns of conglomerate’s default” which was published by this newspaper on July 14.

“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,” Ang said.

With respect to the International Monetary Fund report, which was cited in the article, it was pointed out that no specific conglomerate was mentioned in the report and does not 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,” the conglomerate stressed.

Moreover, Ang said 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 spread the speculations.

It was cited in the news article that IMF has warned the Philippine government that the economy is facing a risk that a “highly-leveraged conglomerate” would default on its “foreign obligations and/or domestic loans”.

SMC shares plummeted almost 6 percent on Wednesday’s trading.

Madelaine B. Miraflor


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