Latest Stories

Tan group keen on recapitalizing PNB

The Lucio Tan group plans to recapitalize banking crown jewel Philippine National Bank, grow new businesses such as healthy beverages and boost its businesses under listed conglomerate LT Group Inc. (LTG).

Whatever family business interests not folded into LTG, such as the 51-percent stake in flag carrier Philippine Airlines, are not part of the assets that the group intends to keep for the long haul, LTG president Michael Tan told reporters after the holding firm’s annual stockholders meeting on Wednesday.

Tan affirmed that the family was now talking to investors for the possible sale of its interest in PAL.

Under LTG, apart from banking, are tobacco manufacturing (Fortune Tobacco), property development (Eton Properties Philippines), beer brewery (Asia Brewery) and rum-making (Tanduay Distillers).

In April, LTG raised $920 million from a landmark equity offering that set a record as the largest initial public offering or re-IPO seen in the local market.

On the recapitalization of PNB, Tan said the group was still studying its options ahead of the implementation of the stricter capital adequacy rules based on Basel 3 in January 2014.

Subject to market conditions, he said the usual plan would be to offer new shares, with the LTG subscribing to its pro-rated shares to avoid dilution.

For Eton Properties, Tan said the plan would be to grow its recurring earnings stream by expanding the business process outsourcing-oriented property portfolio.

On the beverage business, Tan said the group was currently importing soy milk but it was considering putting up a manufacturing facility once demand hits a critical mass.

LTG is also keen on growing its beer and hard liquor businesses. In the case of Tanduay, he said this unit would soon start exporting rum to the United States.

For beer, he said the strategy would be to bring more premium products to the market as the current excise tax structure was more favorable to higher-priced products. Doris C. Dumlao

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Banking , Business , LTG , Philippine National Bank

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Aquino: ‘Doubting Thomases’ now contributing to PH recovery
  • Fire engulfs apartments in Sampaloc
  • Messy warehouse belongs to Unicef, WFP, says Soliman
  • Suspected Abu Sayyaf rebels release hostage
  • New meaning of Easter in Samar
  • Sports

  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace