Taipan Lucio Tan might be keen on buying back San Miguel Corp.’s stake in Philippine Airlines (PAL), consolidating his group’s control over the flag carrier, but it appears the pool of local wealthy investors is drier than we thought.
It seems some of the local businessmen we spoke to simply aren’t interested in running an airline, even Asia’s oldest carrier.
The natural choice, of course, was businessman Manuel V. Pangilinan, given his group’s well-known rivalry with San Miguel. That inevitable question on PAL came up at Tuesday’s PLDT briefing, but Pangilinan said any investment in the carrier “was not on the radar.”
While Pangilinan said they made an offer for PAL two years ago “at a different configuration,” it was ultimately not in the First Pacific group’s line of business.
“I don’t think we’re good in running an airline,” said Pangilinan, who heads various businesses, including the country’s biggest telecommunications provider and electricity retailer.
We also asked the country’s oldest conglomerate, Ayala Corp., and its managing director, John Eric Francia, noted that commercial airlines, too, were not being considered.
“Everything about it is very challenging,” Francia said.
It was the same sentiment for Aboitiz Land Inc.’s chief executive Andoni Aboitiz, who simply said “it is a very tough” business.
Following Tan’s “low” offer for San Miguel’s stake last week, it would be interesting to see if this will be improved and who he might bring onboard. Abangan! Miguel R. Camus
Profit taking
A foreign investor group—British Virgin Island-based Top Global Systems Ltd.—has made a killing betting on integrated resort and gaming developer and operator Bloomberry Resorts Corp.
This group sold 245 million common shares in Bloomberry in the open market at P11 a share for P2.7 billion in an equity deal arranged by CLSA. Top Global Systems paid for this same stake for only P245 million two years ago.
Based on Securities and Exchange Commission (SEC) records, Top Global Systems bought into Active Alliance Inc., the dormant holding firm used by tycoon Enrique Razon Jr. for the backdoor-listing of the gaming business, in February 2012.
Top Global Systems then subscribed to 800 million common shares in AAI at a price of only P1 a share.
Top Global Systems does not appear among Bloomberry’s top stockholders, which means its shares must be lumped into the foreign-held shares under PCD Nominee Corp.
After this transaction and based on the estimated number of stocks, Top Global Systems still has a residual 5.2-percent stake in Bloomberry.
The share price of Bloomberry fell by 4.68 percent Tuesday as the equity deal marked a discount to the previous trading day’s close of P11.96 per share. Doris C. Dumlao
Okada stays
Speaking of gaming, if you’ve heard of rumors in the last few days about the group of Japanese tycoon Kazuo Okada pulling out of the Philippine gaming scene, it’s not true.
Local affiliate Tiger Resort Leisure and Entertainment Inc. executive Kenji Sugiyama said in response to our inquiry: “No truth to that report. We are staying to invest to help in the economic growth of the country.”
Sugiyama instead noted that construction of the $2-billion Manila Bay Resorts was going full blast. “As it stands now, thousands of Filipinos are employed in the construction of our complex in Pagcor City. Thousands more will be employed when we operate,” he said.
Despite the many legal tussles Okada’s group had gone through and is still going through (such as the partnership termination dispute with Century Properties), the gaming license is a very rare and precious commodity that the Japanese tycoon won’t give up easily. Doris C. Dumlao
Lights on!
Right on time for the current school year, the One Meralco Foundation (OMF) has energized 12 public schools in the remote mountain barangays of Tanay and Rodriguez, Rizal. That means 2,609 students and 77 teachers are no longer doing high-altitude indoor squinting fests while having class.
We learned that OMF is prioritizing the remaining institutions without electricity in Manila Electric Co.’s franchise area. OMF formally announced the “energization” of the 12 schools in Tinucan Elementary School in Tanay, Rizal, last month and already the foundation is lining up seven more elementary schools for electrification in Mauban, Quezon province.
Up next are 28 other public schools on island communities in Northern Luzon, Visayas and Mindanao (including a number of schools in the Bangsamoro zone). All of these will be energized within 2014.
Outside Meralco’s franchise area, OMF is apparently helping out in reconstruction efforts in places ravaged by Supertyphoon “Yolanda.” It is set to turn over the nine schools it constructed for communities on the islands of Panay and Leyte.
Indeed, every single watt of electricity and every lightbulb helps. Riza T. Olchondra
Investors’ nightmare
Officials of a state gaming agency may be in hot water.
A big law firm was recently commissioned by a foreign company to file graft charges before the Ombudsman against ranking officials of this agency for allegedly refusing to honor and obey a legitimate court order.
This issue, in fact, illustrates why some foreign investors remain hesitant to come to the Philippines despite the gains of President Aquino’s “Daang Matuwid.”
To this day, there remain officials who insist on getting their way despite the fact that their only qualifications are connections with appointing powers.
Anyway, this foreign company built a multibillion-peso factory in Laguna and employs more than 500 Filipino workers, including engineers and accountants. The firm exports locally manufactured products to the United States, Taiwan, China and Malaysia, among others. (It relocated its factory from China to the Philippines.)
At present, however, they have decided to postpone expansion plans because of the difficult time being given them by officials of this state gaming firm.
Who? Here’s a clue: One official is close to an aspiring presidential candidate who is seeking an endorsement from the present dispensation. The other official used to head the agency. Daxim L. Lucas
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