San Miguel exec named Meralco CFO

MANILA, Philippines - Another San Miguel Corp. executive has secured a spot in one of Manila Electric Co.’s (Meralco) top positions as part of the food and beverage giant’s entry into and the government’s exit from the Lopez-led utility. San Miguel Chief Finance Officer (CFO) Ferdinand K. Constantino, who doubles as the company’s senior vice-president, was appointed Meralco CFO Wednesday, a position temporarily held by Meralco Treasurer Rafael L. Andrada following the retirement of Meralco CFO Daniel D. Tagaza last month. Mr. Constantino’s term will start on Feb. 1., the utility told the stock exchange Wednesday. On Monday, four San Miguel officials were named to the Meralco board following the resignation of Government Service Insurance System representatives Bernardino R. Abes, Daisy P. Arce, Winston F. Garcia and Jeremy Z. Parulan. San Miguel President and Chief Operating Officer Ramon S. Ang was elected Meralco vice-chairman, while a senior Lopez group executive, Jose P. de Jesus, was named the new president and chief operating officer of the country’s largest power distributor. San Miguel Chairman Eduardo M. Cojuangco, Jr., Estelito P. Mendoza and Aurora T. Calderon were likewise appointed to the board, replacing the GSIS representatives. Rounding out the Meralco board are Chairman Manuel M. Lopez, directors Christian S. Monsod and Cesar E. A. Virata, and independent directors Artemio V. Panganiban and Vicente L. Panlilio. Also Wednesday San Miguel told the bourse it had paid GSIS 20% in downpayment for the pension fund’s 27% stake in Meralco. The interest, which the beer company bought in October for P26 billion, will be paid over three years. Earlier last year, Mr. Garcia, the pension fund’s president, led a much publicized bid to wrest control of Meralco from the Lopezes. At P90 per share, the price was more than double the P44.50 Meralco was trading for on the day the deal was announced. Meralco shares closed unchanged at P59 Wednesday. Meralco serves about 4.5 million customers in 25 cities and 86 municipalities in Metro Manila, the provinces of Rizal, Bulacan and Cavite, as well as parts of Pampanga, Laguna, Quezon and Batangas. San Miguel is in the process of buying majority of Petron Corp., the country’s largest oil refiner, and is planning a domestic telecommunication venture with a Qatari firm. — Kristine Jane R. Liu, BusinessWorld