Basketball
Powerade franchise offered for sale to SMC last November
The Powerade Tigers PBA franchise was offered for sale to San Miguel Corporation last November.
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A confidential document obtained by InterAKTV shows that Cosmos Bottling Corporation and Coca-Cola Bottlers Philippines, which owns the Tigers, offered the team for sale to SMC for P100 million.
The letter was dated November 11, 2011, addressed to SMC president Ramon S. Ang, and signed by Cosmos and CCBPI chairman William Schultz.
The document read in full:
To: SAN MIGUEL CORPORATION
Attention:
RAMON S. ANG
PresidentRe: Offer for Sale of Cosmos Bottling Corporation and Coca-Cola Bottlers Philippines, Inc.’s Philippine Basketball Association Franchise (“PBA Franchise”)
Date: 11 November 2011
Pursuant to the Purchase Agreement (“Agreement”) dated 22 February 2007 between Coca-Cola South Asia Holdings, Inc., Cosmos Bottling Corporation and Coca-Cola Bottlers Philippines, Inc. (collectively known as the “Company”) and San Miguel Corporation, we hereby give notice that the Company is offering for sale its PBA Franchise at a price of One Hundred Million Pesos (PHP100,000,000). Attached is the agreement for your reference.
Pursuant to the Agreement, you are hereby given notice that you have the right to purchase the PBA Franchise. If you intend to purchase the PBA Franchise, you must, no later than 60 days from receipt of this notice, submit to the Company a written firm commitment to exercise your right of first refusal to purchase the PBA Franchise at the price offered.
Should the Company not receive your response or acceptance of the offer for the PBA Franchise within 60 days from receipt of this notice, then you shall be deemed to have expressly waived your right of first refusal, and the Company can now offer the PBA Franchise to third parties under the same terms offered to you.
Should you wish to purchase the PBA Franchise, please send a written notice to the undersigned no later than 60 days from receipt of this notice.
COSMOS BOTTLING CORPORATION
AND
COCA-COLA BOTTLERS PHILIPPINES, INC.
By:
[Signed]
WILLIAM SCHULTZ
Chairman and Chief Executive Officer
The offer for sale came before the Tigers’ Cinderella run in the Philippine Cup. Perennially minnows in the tournament, Powerade crashed the finals of the all-Filipino conference, becoming the talk of PBA fans along the way.
Last week, the Philippine Daily Inquirer reported that SMC had bought the Powerade franchise, a story that CCBPI has denied. On Tuesday, the PBA received a trade proposal from Powerade and Petron Blaze, SMC’s flagship franchise, for a trade that would send Marcio Lassiter, one of the Tigers’ best players, to the Boosters in exchange for Noy Baclao and Rey Guevarra.
The deal has received howls of protest from officials of other PBA teams, amid reports of Powerade’s sale to SMC.
The PBA does not allow teams owned by the same company to trade players directly.
The league’s Board of Governors has called a special meeting on Friday to discuss issues surrounding the sale and the Lassiter transaction.
