San Miguel Sells CCB Shares for $555 Million

July 14, 1998 PSE CIRCULAR FOR BROKERS NO. 1615-98 July 13, 1998 SAN MIGUEL SELLS CCB SHARES FOR $555 MILLION San Miguel Corporation announced today (July 13, 1998) that it has sold all of its shares in Coca-Cola Beverages plc of the United Kingdom (CCB), the demerged European bottling operation of Coca-Cola Amatil Limited of Australia, at a price of 1.60 pounds sterling per share or a total of 339.6 million pounds (approximately US$555 million). As earlier announced, 100 million CCB shares were sold through the bookbuilding process managed by SBC Warburg Dillion Read. The balance of approximately 112 million shares was sold at the same price in a private transaction to the Olayan Group, a private international enterprise with interests in a number of industries including the Coca-Cola bottling operation in Saudi Arabia. The bookbuilding process was conducted between July 6 and 10 to provide CCA stockholders who did not wish to keep their CCB shares a venue to sell those shares before CCB's listing on the London Stock Exchange on July 13, 1998 Before the public offering, San Miguel indicated it planned to sell between 50 million and 100 million of its CCB shares and that it would use the proceeds to ease its debt burden and reinvest in its other businesses. There was so much interest in the CCB shares that the strike price settled at the high end of the indicative range of prices that CCA had earlier indicated might be attained in the bookbuilding. Given this strong price, SMC's newly-elected Chairman and Chief Executive Officer Eduardo Cojuangco, Jr. decided to sell all the CCB shares so that the company can improve its profitability. aisadc "This development is a major step in our thrust to reduce the company's debt level," said Cojuangco.