Biz Buzz: WEF vehicles on sale
WEF vehicles on sale
Big discounts have been set for some attractive vehicles that were used—very slightly used, we might add—during last week’s World Economic Forum (WEF) on East Asia in Manila.
Remember that organizers proudly announced, in the weeks leading up to the high-profile conference, that they had signed up three carmakers to supply the transportation component for some 600 WEF participants, many of whom were corporate CEOs and a number of government heads.
These transportation partners were high-end German brand BMW, which provided 25 of its luxurious 7-series sedans (all in gleaming and stately black) through Asian Carmakers Corp. of businessman Jose Alvarez.
In exchange for the sponsorship bragging rights, the distributor lent these cars for free for the few days that WEF was on.
And now, Biz Buzz learned that they’re going to be offered for sale at a discount. With the 730D retailing at P7.5 million, we understand that these slightly used units are now being offered at P5.8 million. Not a bad deal.
Another partner, the Ayala-owned Volkswagen Philippines distributorship, also plunked in 40 brand new Touareg V6 SUVs. We’re told that these vehicles, which retail at P4.3 million, will be sold at a “negotiated” discount rate, possible falling to as low as P3.8 million. Again, not a bad deal.
Finally, Korean automaker Hyundai also lent 11 Grand Santa Fe SUVs (suggested retail price: P2.5 million) and 52 Grand Starex vans (suggested retail price: P2.7 million) for the conference. We understand that they would be put on the market at a P100,000 discount—while supplies last, of course.
So if you don’t mind owning luxury vehicles that were used by heads of state and corporate VIPs for a week, these might be the ones for you. Daxim L. Lucas
Twin suspensions
Two stockbrokerage houses were suspended by the Capital Markets Integrity Corp. (CMIC)—the market regulation unit of the Philippine Stock Exchange—one after the other last week. These were I. Ackerman & Co. and Nieves Securities Inc. (NSI).
Our sources said NSI was suspended for failure to file with the PSE a change in general ownership. A new investor took over majority control of the stockbrokerage house a few years ago, but this was noticed only recently by the PSE due to a filing for request in change in nominee. Apparently, the brokerage house either neglected to submit this, or was unaware that a change in majority ownership should be submitted for prior PSE approval. Whether an honest mistake or a sin of omission, operations are now suspended.
Since NSI is now under the tutelage of a new investor, there was a question on whether it would be considered a new entrant and therefore subject to the hefty P100-million minimum capital requirement for a newbie. Recall that a few years ago, an old brokerage house that forgot to file for extension of corporate life had to shell out that much because a new incorporation was technically a separate new company subject to the capitalization requirement.
Meanwhile, Ackerman was suspended due to some deficiency in accounting reports needed to ascertain its capital adequacy. The buzz is that the old accountant who knew all the numbers had gone AWOL, overwhelming the successor and resulting in a failure to submit the risk-based capital adequacy requirements. Doris C. Dumlao
Top secret apprentice idea
It has been almost a year since Filipino Jonathan Allen Yabut won “The Apprentice Asia,” hosted by AirAsia owner Tony Fernandes, and it seems the University of the Philippines graduate has made quite an impression on his Malaysian boss.
Fernandes, who was in Manila last week for the 23rd World Economic Forum (WEF) on East Asia, told Biz Buzz that Yabut was doing more than well.
Despite earlier concerns on where Yabut would be a good fit, Fernandes said the former product manager, in fact, came up with a “brilliant idea” for AirAsia that could turn out to be “something very special.”
“It’s travel related and it’s Internet related. So I am going to put some money into it,” added Fernandes, whose fortune was estimated by Forbes Magazine at $650 million.
He declined to give details, of course, but he said development teams were already working with Yabut to make this idea a reality.
Fernandes noted that he wanted to make Yabut “a big success.” After all, he was the first winner of The Apprentice Asia, the region’s answer to the namesake US television hit hosted by American property mogul Donald Trump and would thus serve as an inspiration for future contestants.
And speaking of future contenders, more of our executives would soon have the chance to prove their business acumen in such a high profile manner. We hear Fernandes was already getting ready for the second season of The Apprentice Asia, which would start taping in the coming months. Miguel R. Camus
Top research team
For the sixth straight year, CLSA was voted as the No. 1 equity research house in the Philippines in the annual poll of financial publication Institutional Investor, putting another feather on the cap of CLSA Philippines head of research Alfred Dy and his team.
CLSA Philippines country head Mitzi de Dios said the research team was committed to providing domestic, regional and international fund managers unique local insights into Philippine companies, markets and sectors.
“This award recognizes our team’s independent and uncompromised research as well as the accuracy of our analysis,” De Dios said. “We are bullish on this market and see considerable opportunity for investment in conglomerates, consumer, banks and media sectors. Our team looks forward to continuing providing them with our best tradable ideas.”
The team has six dedicated research analysts covering about 40 companies across the following sectors: cement, conglomerates, construction, consumer, gaming, media, mining, power, property, strategy/financial services, telecoms, transport and utilities. The analysts under Dy are Jonathan Estrada, Jacqui Evangelista, Ignacio Gonzalez, Rafael Javier and Hazel Tanedo. Doris C. Dumlao
Konbini wave
There are convenience stores and there are convenience stores, all with food, drinks, magazines and other items for sale 24/7.
And then there is the “konbini”—the Japanese equivalent, where a customer is greeted as soon as he or she sets foot inside the store’s sliding doors and offered every possible service until he or she exits.
There is a Japanese konbini chain already in Manila and another appears to be on its way. At the sidelines of the World Economic Forum (WEF) on East Asia in Makati City, conference co-chair Takeshi Niinami said in an interview: “We have a strong interest in coming here but we need a good partner. We are working on it. This is a potential market for Lawson.”
Niinami is chair and representative director of Lawson Inc., which operates store chains under the “Lawson,” “Lawson Store 100” and “Natural Lawson” brands as well as related businesses such as entertainment and ATM management.
Lawson, Niinami said, was attracted to the Philippines’ young, culturally diverse population with growing spending power. Niinami noted that there seemed to be a mix of konbini-style stores in the Philippines and Lawson aimed to offer something fresh to consumers.
“We have to be different,” he said.
Family Mart and Ministop are already building their respective networks in the Philippines. Both punctuate their mix of foreign and local stock with in-house snack and beverage items. Some non-Japanese convenience stores have even tried offering Japanese-style items such as onigiri (rice balls) and other fusion fare, while still others have gone the East-meets-West route, complete with greetings as customers enter (ala Japanese konbini).
Whatever the new concepts, at the very least, customers have more choices; that’s one more reason to spend and for investors to do business here. Riza T. Olchondra
Hydro builders wait for ‘grace’
A bit of good news has come the way of large hydropower project developers.
The government is considering granting them a so-called “pre-development” period—perhaps up to five years—to be able to optimize their investment in such long-gestating, capital-intensive power projects.
“We are studying all the merits of giving large impounding hydro consideration in terms of pre-development period considering the study involved is much greater than run-off-river,” Energy Secretary Carlos Jericho L. Petilla said in a text message, adding that such a grace period, if given, should not violate existing laws.
The Aboitiz group, for one, is eagerly awaiting such a policy. AboitizPower Generation Group COO Emmanuel Rubio said SN Aboitiz Power Inc. or SNAP—a joint venture between SN Power of Norway and AboitizPower—has a pending renewable energy service contract for a big-ticket, greenfield hydropower complex in Luzon that the company wanted to sign after confirming that there would be such a policy.
“We are waiting for a department order to be approved,” Rubio said, adding that investors wanted to see a pre-construction period of about five years outside of the first 25 years of the service contract. Explaining the sentiment, Rubio said “it takes a long time to construct a hydro [project], longer than coal. We just need to make sure that that provision is in before we sign [the service contract].” Riza T. Olchondra
‘Hello, this is Sec Procy’
In these times of controversies about the pork barrel and fraudulent budget releases, no one in his right mind would want to be mistaken for someone being implicated in the scams, such as Agriculture Secretary Proceso J. Alcala. Right? Wrong.
In fact, Alcala—named in at least two plunder complaints lodged at the Office of the Ombudsman—warned the public against individuals posing as the agriculture chief and asking for monetary contributions.
“I have received reports that there are people who have been communicating with local government officials and members of the public asking for financial assistance,” the agriculture chief said.
“I would like to make it clear that we do not, in any form or manner, solicit money especially through the phone,” Alcala said.
Apparently, impostors would use random numbers to call gullible officials or ordinary citizens. They would ask for cash, supposedly for the benefit of farmers, which should be deposited in various bank accounts.
“As a member of the cabinet and a firm believer of good and transparent governance, it is not part of our duty to ask money from people we conduct business with,” he said. “We would like to encourage everyone to validate all calls and provide the necessary information to our office so we can direct it to the proper authorities.”
Well, maybe these fans of PT Barnum—who was supposed to have said something about the runaway population growth of suckers—were now thinking of expanding their act.
The newly installed presidential assistant on food security and agricultural concerns may need to be careful then. As Francis Pangilinan has been given authority over the fattest, “juiciest” agriculture agencies, these con men may soon be making calls—“Hello, si Sec Kiko ito.” Ronnel Domingo
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