Biz Buzz: Change of command at PAL

It was a busy Monday for the camps of San Miguel and Lucio Tan, as the final deal for Tan’s takeover of Philippine Airlines’ management was finally sealed.

But the eventful day did not end there. That afternoon and through the evening, a tale of two parties unfolded—one welcoming back Tan at the helm of PAL and another, smaller group, bade San Miguel, and its chief Ramon S. Ang, farewell (for now).

The two events were also a study in contrast—both carried the full weight of an important transition in the history of what is the region’s oldest flag carrier.

Tan’s “meet-and-greet” event occurred around 4 p.m. with hundreds of PAL employees—dressed in red—filling up the cavernous auditorium of Tan’s Philippine National Bank to listen to prepared speeches by the tycoon himself and the airline’s new general manager, Jaime Bautista (its former president).

But it was way more than a meet-and-greet affair. The event carried the air of a fiesta, with stereo systems blaring and the thunderous chants of “Mabuhay si Chairman Tan” lacing the end of the billionaire’s speech.

Tan gave a heartfelt message on how the airline and its employees were special to him, how PAL was “not just another airline or corporation”, bolstering the perception that the “buyback” was motivated by more than mere business interests.

Bautista, on a more serious note, outlined broad strategies like the need to review expansion plans, while “reminding those who remained loyal to PAL” that they would reap the rewards of their hard work.

It was an effective rallying call to PAL’s workers (some of whom were moved to tears). After all, in the frenzy of reporting over the transaction, they remained the most overlooked bunch, despite their livelihoods depending much on PAL’s success or failure.

A few hours later, at Ang’s Diamond Hotel, a more laid-back affair took place with about a hundred guests including many PAL officials and employees.

But if the mood was more restrained, Ang didn’t show it upon arriving at the venue, hopping from table to table, greeting guests as if he had just bagged another major deal.

Or maybe he did, with SMC over a $1 billion richer post-transaction, after turning the carrier around in just two years. Or it could have been the next big targets for the conglomerate, of which we hear there are plenty.

Halfway through the evening, beneath Yurakuen restaurant’s silver and crystal cherry blossom trees, Ang, too, gave a speech explaining the circumstances of the sale and why it had to be done.

The contents, of course, are strictly confidential but if verified, might poke holes into the perception that SMC was in the business of just flipping assets.

Those brief comments also drew some tears and a standing ovation of about 37 seconds long. (Yes, we counted.)

With the welcoming and goodbyes all but done, PAL now undergoes the process of sorting out its future plans. And as we say in this space, abangan!–Miguel R. Camus

More interested

Now that San Miguel Corp. has sold back its stake in Philippine Airlines to the Lucio Tan group, the question on many people’s minds is whether Ramon Ang will still pursue his plan of building a mega-airport on reclaimed land at Manila Bay (or anywhere else the government will let him).

After all, it seems to many observers that Ang’s interest in building an airport came hand in hand with his mission of bringing PAL back to profitability.

For PAL to achieve better returns (better than where the SMC chief left it upon turnover to Tan), it was crucial for a bigger airport with more runways to improve operational efficiency at the flag carrier.

Biz Buzz learned that, far from being deterred by the return of PAL to Tan, Ang remains interested in building something like the $10-billion project he had proposed to Malacañang.

More importantly, Ang’s moves will no longer be hobbled by regulatory restrictions and fears that any airport business would be in a conflict-of-interest situation with SMC’s owning an airline.

We had the chance to pose the question to the SMC chief Tuesday on whether he is still interested in running an airport, and his loaded reply was: “Yes…. More pa.”–Daxim L. Lucas

‘Rice’ to the challenge

While in Europe to attend his first meeting as board member of the International Basketball Federation (Fiba), businessman Manuel V. Pangilinan, aka MVP, accepted the so-called rice bucket challenge from his friend Henry Lim Bon Liong, CEO of Sterling Paper Group of Companies and hybrid rice producer SL Agritech Corp.

MVP announced via micro-blogging site Twitter on Tuesday that upon his return from Madrid and Hong Kong, he would donate 100 sacks of rice to indigent families.

“A good cause, a better idea,” MVP said of the rice bucket challenge presented by Lim.

Drawing inspiration from the viral Ice Bucket Challenge that seeks to raise funds and awareness for amyotrophic lateral sclerosis or Lou Gehrig’s disease, the rice bucket challenge was started in India to encourage people to donate a bucket of rice to the less privileged.

MVP and Lim are currently hatching a potential partnership in rice production, which is in line with the First Pacific group’s increasing focus on agriculture and commodities. “Discussion (is) going on,” Lim said.

By the way, the rice bucket challenge has no need for participants to pour rice over their heads. However, it requires the posting of picture of the participant handing over the uncooked bucket of rice meant for the needy and tagging other people to take up the challenge.–Doris C. Dumlao and Tina Arceo-Dumlao

Alpha’s offer

Using a narrowing leeway for minority shareholders to exit, soon-to-be delisted Alphaland Corp. has set a tender offering to acquire all shares held by small investors at P9.03 apiece. The tender offer by the property development firm of businessman Roberto V. Ongpin will run from Sept. 17 until Oct. 15 this year.

The duty to buy the shares has been devolved to subsidiary Alphaland Development Inc. because it does not have sufficient unrestricted retained earnings to acquire the shares. Some 2.99 million common shares held by minority shareholders are covered by the tender offer. Tower Securities Inc. was mandated as the transaction broker.–Doris C. Dumlao

E-mail us at [email protected]. Get business alerts and a preview of Biz Buzz the evening before it comes out. Text ON INQ BUSINESS to 4467 (P2.50/alert).

Lucio Tan group retakes PAL’s helm

4 banks funding PAL buyback

View comments

TAGS: Alphaland, change in management, Lucio Tan, Manuel V. Pangilinan, PAL, Philippine Airlines, Ramon S. Ang