Biz Buzz: MVP to get a Brazilian model?
Businessman Manny Pangilinan, who leads a host of high-profile Philippine companies, is apparently in the market for Brazilian models—of aircraft, that is.
On Monday, as he left a media briefing about industry concerns on the lack of consultations on proposed mining reforms, Pangilinan said he was set to go to a presentation with Sao Paulo-based aircraft maker Embraer.
MVP kept quiet on whether he would buy aircraft from Embraer, and for what purpose. He did let on, however, that his initial impression of Embraer jets was that they looked “nice” and that “the fuselage, the interiors look good.”
He said that Embraer made commercial but small-sized aircraft, as well as business jets, out of Brazil. Pressed as to why he was interested in executive jets, Pangilinan quipped, “So I can get away from you [reporters] easily.”
Incidentally, just last week Embraer announced plans to expand its presence in the Asia-Pacific region. Embraer also said in a separate statement posted on its website that it has reappointed its authorized sales representative in the Philippines, where the aircraft maker sees “unique opportunities,” particularly for the executive jets segment.”
Pangilinan was more reticent, though, on other sorts of aircraft. Asked whether he was in talks with taipan Lucio Tan over Philippine Airlines, Pangilinan simply said, “I’d rather not comment on that.” Of course, we know what replies like that mean.—Riza Olchondra
He said, he said
LMG Chemicals Corp. and Chemical Industries of the Philippines (CIP) chair Antonio Garcia is not about to let trading on these two companies resume until Diversified Securities Inc. (DSI)—the local stockbrokerage owned by his younger brother Ramon—would have accounted for about 19 million of the 193 million shares lodged in DSI. (The Philippine Stock Exchange has approved an extension of the trading suspension on LMG and CIP until March 2). Antonio told Biz Buzz that DSI should return those questioned shares, suggesting that this suspension had more to do with the shares dispute with Ramon than the talks with LMG’s potential buyers.
Antonio also claimed that he had returned the checks and denied obtaining the proceeds from the questioned sale of LMG shares. Since the PSE has extended the grace period for listed companies to widen their public float, he said that DSI had no right to sell those shares without his knowledge.
In response to these accusations, Ramon’s camp sent us a bank voucher and statement showing that P6.38 million was paid to Chemphil as payment for the sale of 4.56 million shares prior to a cross-transaction instructed by Chemphil and 3G Holdings to DSI. The written orders were provided to disprove that Antonio did not know about the release of those shares alongside a February 3 request for the return of their shares “less the number of shares sold in the market.” As the extension of the minimum public float requirement was only made in January this year, the cross-sale has been fleshed out by then, DSI said.
“Keeping CIP/LMG shares suspended is a very selfish act on their part. The investing public is disenfranchised,” said Ramon’s son, DSI director Jose Ricardo Garcia.—Doris C. Dumlao
David versus Goliath
Is the Philippine unit of Taiwanese banking giant Chinatrust giving its small shareholders their due in its plan to delist its shares come Friday?
The bank—which only has three days left as a listed stock on the local bourse—has announced plans to buy back its shares from its small shareholders, after having lived a relatively quiet life on the PSE in the last decade (it chose to delist rather than sell new shares to comply with higher free float requirements).
Chinatrust wants to buy back the shares of small stockholders at P26.14 each based on a valuation report made by Punongbayan & Araullo, but some stockholders think the offer is too low.
At least one shareholder has complained to the bank’s officials, and to the PSE, that other bank shares were valued higher than Chinatrust’s illiquid stocks. As such, the bank should offer them more (at least P33 a share, according to one estimate).
With delisting date looming, one shareholder—who owns about half of the outstanding stock on the market—is threatening not to sell his shares.
It’s a case of a David standing up to a Goliath. Let’s see if regulators will take the side of the small investor this time around.—Daxim L. Lucas
Conflicted
Isn’t it illegal for a government official to be working for a private corporation at the same time?
This could be what is happening with an official of the Baguio City government who (according to documents sent to Biz Buzz) is also listed as an employee of Camp John Hay Development Corp. (CJHDevco).
A certain Dennis G. Ruiz is listed as a lawyer for the LGU even as the same name appears as a legal manager of CJHDevco as of December 2011.
Of course, the law explicitly prohibits public officials from receiving double compensation, if those indeed refer to a single person.
More importantly, there is a potential conflict of interest in holding these two positions since there is a legal dispute with the Bases Conversion and Development Authority (BCDA) and the city government involving a P3-billion rent dispute. The Baguio City government stands to receive 25 percent, or P750 million, if CJHDevco pays its arrears.
But the private developer already rescinded the contract and is now claiming P14.4 billion in damages from the government. The question is … whose side is Ruiz on? Or are there two of them?—Daxim L. Lucas
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