Tycoon Ramon S. Ang’s San Miguel Corp. (SMC) is initiating a crucial succession process by naming John Paul Ang as the new president and chief operating officer, establishing his eldest son as heir apparent to lead one of the country’s largest business groups.
At 70 years old, Ang will transition to the role of chair while retaining the title of CEO. This ensures his continued involvement in managing the company’s future.
“I’m going to stay to guide the company for a while,” Ang, who was SMC president and COO for over two decades, told InsiderPH.
He said the 44-year-old Paul, who joined the board of SMC three years ago, is ready to take over a broader leadership portfolio. Paul also sits on the boards of Petron Corp. and SMC parent firm, Top Frontier Investment Holdings.
“It’s a good transition since Paul knows SMC’s projects well,” Ang added.
The big picture
This signifies a major shift within the conglomerate without a full changing of the guard. Ang is staying flexible on how long he plans to steer SMC, which suggests a more gradual transition that investors will welcome.
At the same time, the appointment is a vote of confidence from Ang and the board on the capabilities of Paul, who is the longtime president of Eagle Cement.
Diversified empire
Eagle’s growth was pivotal to SMC’s aggressive push into infrastructure.
Ang, also known by his initials RSA, personally directed this diversification strategy shortly after he became president in 2002, reshaping SMC’s portfolio from beer and food to include Petron Corp., power plants, expressways, railways, and airports.
The company, which recorded revenues of over P1.4 trillion in 2023, is in the midst of developing a P740 billion international airport complex in Bulacan and won the P170 billion bid to modernize the Ninoy Aquino International Airport.
The market’s take
Juan Paolo Colet, managing director at leading investment bank China Bank Capital Corp., said investors will be closely watching Paul as he steps into his new leadership role at one of the country’s most important companies.
“RSA will still be the key decision-maker as chairman and CEO, while Paul has the crucial responsibility of driving profitability, ensuring execution of their plans, and managing a massive organization,” Colet said.
Defining a new era
“He faces high expectations, and many will inevitably compare him with RSA. I have no doubt that Paul has what it takes to successfully lead a business and create value, with Eagle Cement as the clearest example,” Colet continued.
The market veteran said this also creates an opportunity for Paul to shape the future of SMC, whose roots go back to a brewery that was established a few years before the end of Spain’s colonial rule in 1898.
“Now that he is President and COO, he will have more opportunities to outline his vision and demonstrate his capability, so his distinct contributions to SMC will become more apparent over time,” Colet said.
What’s next?
Ang outlined the group’s directives during SMC’s annual stockholders’ meeting on Tuesday.
“The next few years will be about investing and getting things done,” he said.
“We will build on our success by creating value through nation-building projects, maximizing synergies, and integrating sustainability across our businesses,” the tycoon added.
SMC’s core earnings, which exclude the impact of foreign exchange losses, soared 61 percent to P14.5 billion during the first quarter of 2024.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
