Caveat emptor—Latin for “let the buyer beware”—is a well-known principle in the world of business. And it is a principle that the Ayala group takes very seriously, apparently.
The group takes it so seriously, in fact, that no less than Jaime Augusto Zobel de Ayala decided to descend from the heights of his Tower One office and take a rush hour ride on the Light Rail Transit with the rest of Metro Manila’s mortal commuting population.
Biz Buzz learned—somewhat belatedly, we admit—that Jaza (as he is known to mortals, “Jaime” if you’re close) took a team of Ayala officials with him and decided to ride the LRT’s Baclaran to Monumento route in preparation for the conglomerate’s bid for the LRT-1 extension project, which was then being bid out under the government’s slow-moving public-private partnership program.
Biz Buzz caught up with Jaza recently and he confirmed that he indeed rode the metropolis’ oldest light rail line because he wanted to understand the system better in preparation for making a bid.
“We started at around 5:30 a.m. and queued up at the turnstiles along with everyone else,” he said, describing the experience as “interesting.”
Jaza—along with his younger brother, Fernando—rode the LRT end to end, with minimal fuss, we hear, and without the benefit of heavy security that other VIP businessmen are known to take around.
The head of the Ayala conglomerate said he was dressed casually “in jeans” during the ride, although a review of social media posts at that time revealed that there were some people on the train and at the station platforms who recognized him and/or his brother, and were quite surprised that he was mixing with the masses.
While the LRT trip was a first for him locally, Jaza says he makes it a point to try the metro or subway systems of other countries—a different experience altogether when it comes to volume of rush hour passengers.
As it turned out, the Ayala group decided to pull out of the LRT-1 extension bidding (along with everyone else, save for the Metro Pacific group), resulting in a failed bid.
“But that (decision) was because of the financial aspect,” Jaza stressed.
So next time Ayala bids for a project, keep your eyes open for the Zobel brothers trying to mix with the crowd incognito. Daxim L. Lucas
RSA’s leveraging
Ramon S. Ang, the president and single biggest controlling stockholder of conglomerate San Miguel Corp., transferred his 368.14 million common shares in SMC from one holding firm (Master Year Ltd.) to another (Privado Holdings Corp.) at the same price of P75 per share that he bought them last year from the big boss, Eduardo “Danding” Cojuangco Jr. The P26.7-billion block which was crossed by BA Securities on Monday represented 11 percent of SMC’s issued and 15.5 percent of outstanding common shares.
“I’m consolidating all my SMC shares in Privado so I can leverage (it),” RSA said in a text message Tuesday. This suggests that RSA intends to borrow fresh funds using his SMC shares as collateral and Privado as vehicle, beefing up his personal war chest.
It’s this Privado, where RSA has one Thomas Tan as partner (the latter with 37.5 percent interest versus RSA’s 67.5 percent), that was picking up some SMC shares from the open market recently, such as last July amid that controversial International Monetary Fund report alluding to a highly indebted conglomerate at risk of default.
In the meantime, RSA denied market rumors that there’s a side deal for JG Summit to acquire some SMC shares in relation to the Gokongweis’ purchase of the 27 percent stake in Manila Electric Co., which was announced in the same day as the multi-billion peso cross of SMC shares. Doris C. Dumlao
Solaire’s top gun
Just a few weeks after replacing the head of Solaire, publicly listed Bloomberry has found a replacement to run its $1.2-billion casino resort complex.
And—from all indications—the replacement is an international gaming industry heavyweight.
Enter Thomas Arasi, whose most high profile achievement is having launched and managed the iconic Marina Bay Sands casino hotel complex in Singapore.
“This guy is the number one choice in the gaming industry,” said one Biz Buzz source who is familiar with Arasi’s reputation.
Given the new Solaire chief’s reputation, word on the street is that Bloomberry’s owner—ports magnate Enrique Razon Jr.—paid top dollar to bring Arasi on board.
After shocking the industry by leaving Marina Bay Sands in 2011 (“to be with his family”), Arasi became Caesars Entertainment’s head of hospitality in May of this year.
“For [Arasi] to work here says a lot about the Philippine gaming industry’s prospects,” the source said.
Hopefully, Solaire’s problem with its previous management team was a mere hiccup. Daxim L. Lucas
CSR full speed ahead
The group led by tycoon Manuel Pangilinan has had rough sailing vis-a-vis regulators in telecommunications, as it was asked to divest itself of one 3G frequency. Its thrust into the mining sector faced an administration that is not too keen on the industry. Its contract to run the Subic-Clark-Tarlac Expressway keeps on being reviewed. Recently, its water business has come under assault, as well.
But never mind all these setbacks. The group is pushing ahead full steam in its corporate social responsibility thrust.
The various foundations of the MVP group recently went all out to help the Batanes island group which was battered by rough weather. They delivered relief goods, water and power generators. Damaged cell sites were rapidly repaired, as well. (The Batanes-based Abad family was very happy with the help, we’re told.)
The same amount of support was extended by the group to the province of Zambales, which was also hard-hit by flooding recently.
Finally, One Meralco Foundation recently inaugurated a 40-kilowatt micro hydro electrification project in Surallah, South Cotabato in partnership with the US Agency for International Development and the local government unit, for the benefit of 200 mostly Muslim and T’boli families.
Now if only the government would show them back some love. Daxim L. Lucas
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