says San Miguel stake is just business
KUALA LUMPUR, Sept 13 - Mirzan Mahathir
has defended his
investment group's stake in Philippines conglomerate San Miguel Corp
(SMC), saying the company was well on the way to diversifying substantially from its brewery business.
In a letter to The Malaysian Insider yesterday, Mirzan
said San Miguel Corp
had decided to shift its attention to the infrastructure, public utility and energy requirements of the Philippines, from its core brewery business.
"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," he
said in the letter.
The Malaysian Insider had reported this week that Mirzan, the eldest son of Tun Dr Mahathir Mohamad, was recently appointed to the board of San Miguel Corp, the biggest food and beverage conglomerate in the Philippines and the owner of San Miguel Brewery Inc.
San Miguel Corp
told the Philippines stock exchange last week about Mirzan's appointment which is to represent the interests of Q-Tech Alliance Holdings Inc
on the board.
, a Manila-based investment company in which Mirzan
has a stake in, recently acquired a 19.9 per cent share in San Miguel Corp
for 39.61 billion pesos (RM2.9 billion).
Since news of Q-Tech's
acquisition of San Miguel Corp
shares began circulating here, a number of news blogs have used it to attack Dr Mahathir's
"Unfortunately, certain parties are keen to turn this exciting positive change in a well?managed Philippines 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," said Mirzan
said San Miguel Corp's
major diversification move was a major reason for his
participation and starts a new era for the conglomerate.
went on to list down some of San Miguel's diversification acquisitions in recent years.
"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," said Mirzan of the report in The Malaysian Insider.
corporate forays have not been without controversy.