Biz Buzz: Tampakan goes local
The massive but undeveloped Tampakan copper-gold project in Mindanao made headlines again last week, but for a positive development, for a change.
This was after the Alcantara family’s Alsons Group offered to fully acquire shares in Australia’s Indophil Resources NL that it does not yet own at a significant premium. That deal, which Alsons hopes will boost its roughly 20-percent stake to 100 percent, valued Indophil at more than P14 billion.
The move was considered significant because it would place a significant portion of the Tampakan project, which has languished for years due to an open-pit mining ban in South Cotabato, into Filipino hands. After all, Indophil, whose independent directors endorsed Alsons’ offer, controls about 37.5 percent of the Tampakan project, with the rest held by global commodities giant Glencore Plc.
Anecdotes are plentiful about how the previous major stakeholder of Tampakan—which recently underwent its own shareholder restructuring after the Glencore-Xstrata merger—was not fully attuned to Filipino customs, like simply sending a lechon to a local government gathering (a Filipino would know, of course, that that alone will not do, if you know what we mean).
Of course, the reasons behind the ban run deeper than that, but these stories nevertheless emerged as a reminder of how knowledge of local customs can help build positive relations with powerful local governments.
Having a bigger Filipino presence, thus, might be the solution needed to move Tampakan, which sits on one of the region’s largest gold and copper deposits, forward. A favorable regulatory environment for mining is preferred as well.
The deal with Alsons, an influential group in Mindanao whose businesses span power plants to fish farms and agriculture, was still subject to final approval but it could also pave the way for a bigger Filipino presence in the future.
Biz Buzz sources said Indophil has a right of first refusal over the shares of Glencore, which Alsons would assume once the takeover has been completed. That should give our local players a big advantage over the mining project should another shareholder change occur in the years to come. Miguel R. Camus
$5-million makeover
Sofitel Philippine Plaza Manila is going full steam ahead with the preparations to launch in grand fashion the new and improved Grand Plaza Ballroom, which is among the enduring masterpieces of National Artist for Architecture Leandro Locsin.
Invited to the grand launch on Oct. 8 of the Grand Plaza Ballroom include corporate clients and individuals who have held events at the ballroom since it opened to the public in 1976.
Sofitel General Manager Adam Laker said the ballroom and the other marquee destinations—Harbor Garden Tent and the Grand Sunset Pavilion—would then be ready for important events such as the Apec Summit taking place in 2015 and the 50th anniversary of the Sofitel brand worldwide this year.
The Grand Plaza Ballroom, refurbished to the tune of $5 million, will stay true to the original theme of “contemporary Filipino” with the addition of timeless French elegance.
Guests will also be happy to note that the original Murano crystal chandeliers ordered and flown in from Italy by former First Lady Imelda Marcos will still be there with its 876 crystal teardrops. The bulbs, however, will be changed to LED bulbs for that more modern and eco-friendly touch.
Sumptuous food for the event will be prepared by master chefs and guests will also be on hand to marvel at the golden collection of fashion designer Albert Andrada, who was tapped to contribute to the celebration of Sofitel’s golden anniversary. Tina Arceo-Dumlao
Embracing plastic
China Bank Corp. has been in operation for 94 years, effectively building itself over the years as a “businessman’s bank.”
But who would believe that this long-running financial institution with a strong brand is still not a credit-card issuer? The bank had a very low tolerance for risk and previously shunned unsecured types of lending, thereby missing out on rising consumer affluence in the country. And whenever bank executives would take out premium clients to wine and dine, they had no choice but to take out a wallet laden with plastics issued by competitors.
This will all change soon as the banking arm of the sons of tycoon Henry Sy, under a new president, Ricardo Chua, is seen becoming more aggressive in building the consumer business. By early next year, China Bank is finally set to enter the credit card business, having recently become a MasterCard licensee.
Being a latecomer in the business isn’t necessarily a handicap, given the very low banking penetration in the country, alongside very favorable demographics, the higher margin offered by this business, rich opportunities for cross-selling to existing clients and the influx of new innovations on the digital payments space.
The banking landscape is fiercely competitive but, like its big sister Banco de Oro, China Bank can leverage on synergies within the SM empire. Doris C. Dumlao
Best ‘affluent program’
Metrobank Card Corp., a joint venture between the Metrobank group and ANZ, raised the torch for the Philippines at last week’s MasterCard Innovation Forum in Singapore by winning the “Best Affluent Program” plum. It was among the three credit-card issuers in the region that bagged this award.
The award was based on promotions targeting affluent consumers that have significantly driven card-based payments business, for instance a 50-percent off promo for platinum cardholders who dined at Lugang Cafe from October to November last year.
These days, the company still runs other half-the-price speciality culinary promos for foodies. Doris C. Dumlao
Industrial park debut
Not to be left out in a burgeoning industrial estate play, Vista Land & Lifescapes is now preparing to enter this underserved property segment. By late next year, the property developer may be able to launch its very first industrial park in Cavite, said chair and founder Manuel Villar Jr.
“I think demand is going to continue,” Villar told a group of business reporters, suggesting that industrialization would be a way to go forward and catch up with other Southeast Asian neighbors.
Vista Land’s advantage is an ample landbank not too far from Metro Manila that it can devote to this lower-yielding industrial estate business, but the foreign direct investments that this will attract will have a large multiplier effect on the economy, particularly on job creation.
Villar said that Vista Land could initially offer 200 to 300 hectares for its maiden industrial park offering in Cavite and possibly tie up with a foreign partner to bring in the foreign locators. Doris C. Dumlao
Term extension
Banker Joey Bermudez was all set to retire from his duties as president of the state-run Philippine Veterans Bank by the end of business hours tomorrow, Sept. 30, as previously announced.
In fact, he had already held a Thanksgiving Mass a few weeks ago to commemorate his four decades in the banking industry and launched a book of his collected writings.
But Bermudez will apparently have a stay on as head of Veterans Bank just a while longer.
The banker had previously made no bones about his eagerness to retire and spend more time with his family in Canada but was, unfortunately, unable to attend to what would have been his final board meeting at Veterans Bank last week, as he was indisposed.
It was at that board meeting when his replacement would have been named (something that has not yet been decided on, as the vetting process is still ongoing, we’re told).
So now, the latest word is that Bermudez will have to don his banker’s suit just a little while longer while the bank scouts for a new president. But given the unique dynamics that being president of Veterans Bank entails, who knows how long that will take? Not too long, Bermudez apparently hopes. Daxim L. Lucas
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