Biz Buzz: The real score
Many people remain intrigued as to why tycoon Lucio Tan went all out, financially speaking, just to be able to recover Philippine Airlines from his erstwhile partner Ramon Ang.
Tan did, after all, borrow some $800 million from BDO and a few other banks, using shares of his prized firms—Philippine National Bank and LT Group—as collateral. To the casual observer, this looks very much like an emotional decision.
Last Monday, Ang hosted breakfast for several columnists just to clear the air and explain once and for all why he let go of an investment that was obviously very close to his heart (as he is an aviation enthusiast himself).
The San Miguel chief said there was no truth to rumors that Philippine Airlines, under his watch, terminated all the privileges and benefits previously enjoyed by members of the Tan family and business group.
In fact, all contracts of Tan-owned firms with the airline continue to this day, including several contracts for MacroAsia and its maintenance joint venture partner Lufthansa Technik.
Ang said the only privilege that could perhaps remotely be considered an affront to the 80-year-old tycoon was the change in policy regarding the business class seats automatically reserved for Tan group members.
Previously, PAL kept two business class seats on all flights vacant, just in case the tycoon needed to hop onto a plane to any of its routes on short notice. When Ang was put in charge, he asked the Tan group that these seats be freed up because of the missed revenue opportunities. But they agreed that these seats would still be made available to Tan if he gives advance notice.
“That’s the only change in the benefits they enjoyed,” Ang said. “Everything else was the same.”
Could that perceived slight have been enough to trigger a buyback? Who knows?
In any case, word on the street is that businessman Washington Sycip is now helping Tan find a new strategic partner who will help buttress Philippine Airlines after SMC’s departure.
The obvious potential partner, of course, is an SMC rival whom Sycip already tried to bring on board two years ago. Guess “who.”–Daxim L. Lucas
‘Pinoy props’
Many Filipinos working or studying in Paris were disappointed at the way the meeting of President Aquino with them was organized by the Philippine government.
A letter from the Philippine Embassy in Paris sent last month to Filipinos studying in the city (and there are a lot of them) read thus: “Dear student… As a member of the Filipino community in France, we are pleased to invite you to a meeting with President Aquino and the Filipino community during his official visit. The meeting will be held on Sept. 17, 6:30 p.m. at the Chapelle Sainte Bernadette at 4 Rue Auteil 75016 Paris. Cocktails will follow at the Chasseloup Auditorium at 64 Avenue Theophile Gautier 75016 Paris. We look forward to your presence in the meeting.”
Well, as it turned out, many of the Filipino expatriates who showed up were disappointed because they didn’t get to meet the President.
Said one who was invited to the affair: “The whole event was poorly organized because when we went there, the chapel was full. And for the cocktails after, they let us in only after P-Noy left. We just ate. Some people even came from the provinces to see him. They spent around 50 euros (fare) for their tickets. They wouldn’t let us in even if we were invited and RSVP-ed. We showed the (French) guards our invitation but they were just saying ‘No.’”
Perhaps the embassy staff invited more guests than what were necessary to fill the venue to capacity, just to make sure that P-Noy would see a big turnout of Filipinos. Never mind if these Filipinos who were so eager to meet him traveled all the way from the provinces and dressed up for the occasion.
Many of them went away feeling like they were just props for the so-called P-Noy meeting with the Filipino community in France.–Daxim L. Lucas
Riding on Alibaba
Notwithstanding the diplomatic chill between the Philippines and China, Filipino-Chinese businessmen are hitching a ride across the digital superhighway to mainland China. The key is Chinese tycoon Jack Ma’s Alibaba, hot off the e-commerce firm’s record-breaking $25 billion initial public offering.
A team from the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII) recently came back from China where a memorandum of understanding was signed with Alibaba Nanning to promote Philippine farm products to mainland China.
Alibaba, which is using part of its IPO proceeds to build a logistics hub in Nanning—the “Green City in southern China—plans to consolidate agricultural products from Asean and offer them directly to Alibaba’s 600 million consumers.
“This will eliminate middlemen where products can be sold cheaper and delivered faster to the doorstep of their customer,” said FFCCCII vice president Henry Lim Bon Liong, chief executive officer of the Sterling Group of Companies and hybrid rice research and production technology SL Agritech Corp.
The deal will cover not only rice but other Philippine fruits as well. Lim is confident that premium rice produced out of the country is very competitive in terms of pricing except that protocol has to be cleared with Chinese quarantine.
“Jack Ma of Alibaba can just press a button in Beijing to order a mango or durian and the fruits can be delivered within 24 hours,” Lim said.
Apart from Lim the FFCCCII mission to Alibaba also included George Chiu (FFCCCII Agriculture & Natural Resources Committee chair) while Agriculture Assistant Secretary Edilberto de Luna witnessed the MOU signing. Santiago Obien, DA’s technical adviser, likewise joined the mission to China.
After this exciting MOU with Alibaba, Lim said FFCCCII was hoping to come up with the memorandum of agreement that would flesh out everything within the next six months. He said he was likewise hoping that the country’s relationship with China would improve.–Doris C. Dumlao
MARC’s new chief
After retiring from banking over a decade ago, Isidro Alcantara Jr. has been reincarnated into the mining business. He was recently named president of nickel mining firm Marcventures Holdings Inc. after functioning as its executive vice president for a year.
Alcantara, a veteran in corporate banking, was president and chief of Philippine Bank of Communications and had likewise assumed key posts at HSBC Manila. But he spent the longest time during his previous career at Equitable PCI Bank (from 1981 to 2000).
He joined Benguet Corp. in 2008.
The banker has played a key role in the series of acquisitions made by the new investor group of Marcventures which has mining operations in Surigao del Sur through subsidiary Marcventures Mining & Development Corp. (MMDC).
Alcantara’s mandate as the new chief is to expand MMDC’s production tonnage, explore the possible setting up of a nickel processing plant and at the acquisition of additional nickel mining properties.
MMDC is looking for acquisition prospects either around the area or in Surigao del Norte, if available, to establish year-round production.
Alcantara may also lead a team to mainland by next month to talk with potential partners for a prospective greenfield nickel smelting project.–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).
