PSE Circular for Brokers No. 1334-99

June 7, 1999 PSE CIRCULAR FOR BROKERS NO. 1334-99 June 7, 1999 Philippine Stock Exchange, Inc. Disclosure Department Listing and Disclosure Group 4th Floor, Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Gracita B . de Guia Assistant Manager Gentlemen : We respond to a news article entitled "ABN/Jardine to lead $900M CCA offer" which appeared in the Friday, June 4, 1999 issue of Euroweek, a copy of which is enclosed. SMC denies the report that it is planning to sell its shareholdings in Coca-Cola Amatil. While SMC continues to receive offers, it sees significant long term value in CCA and has no intention of selling its shareholdings at this time. LLpr Very truly yours, (SGD.) FERDINAND K. CONSTANTINO Corporate Information Officer ABN/Jardine to lead $900m CCA offer ABN AMRO and Jardine Fleming have been mandated for the sale of San Miguel's (SMC) stake in Australia's Coca-Cola Amatil (CCA) in a deal which could raise up to $900m, via public offer. Despite denials from bankers at one of the lead managers. Euroweek has learnt that CCA board has already approved the public sale, which is expected before the summer Illegible Portion in Philippine Stock Exchange Files sets in. Other officials connected is the sale said the mandate document had not yet been signed but that there had been a verbal agreement. aisadc SMC acquired its 21.5% stake in CCA through a swap for its 70% shareholdings in Coke Philippines in 1997. Following the spin-off of CCA's European operation to cease Coca-Cola Beverages (CCB). SMC eventually sold its stake in CCB for $555m. Combined with the sale of Nestle' Philippines during 1998 and other sources the company has cash reserves close to 51.4bn. It had been assumed by analysts that the most likely method of affleading SMC's stake and that preferred by CCA would be through a sale to a single strategic investor. But under pressure from SMC a bookbuilt said Illegible Portion in Philippine Stock Exchange files said to institutional investors has instead been chosen, a route that should maximize the potential gains. Analysts said that SMC had indicated it might buy back up to 10% of issued capital with the proceeds from the CCA sale. Said Illegible Portion in Philippine Stock Exchange file "Is in unclear what benefit this might bring to the company as a whole. If one were cynical in would be possible to see the buyback as little more than as attempt to increase the coming management's stake by reducing everyone else's." Another analyst acted that questions over what management intends to do with its each board have increased SMC stock volatility. "Because investor don't have serious issues on which in evaluate what the company is up to the stock has began to be moved by increasingly indictous rumours." CCA suffered dramatic losses in its share price during 1997 and much of 1998 as Asian currencies collapsed. Two of the company's largest markets the Philippines and Indonesia, accounting for 32% of CCA's sales suffered especially heavily. CCA stock has recovered sharply since the third quarter of last year. The share price closed at A36,150 yesterday (Thursday). Said an analyst: "While volumes were down in markets such as Korea and Indonesia last year, CCA is expected to Illegible portion in Philippine Stock Exchange file strongly this year, with the stabilization of Asian currencies. This is a long term growth Illegible portion in Philippine Stock Exchange file ." Ord Illegible portion in Philippine Stock Exchange file In which Jardine Fleming has a 50% stake, is expected is play a major role in the deal, given its knowledge of CCA. cdll Term from both mandated banks are believed to be in the Philippines, preparing for the sale.