Japanese gaming magnate Kazuo Okada is all but certain of losing his P100 million bond with Philippine Gaming and Amusement Corp. for what will almost surely be his firm’s failure to complete a promised mega hotel and gaming center in the Entertainment City that is rising on the edge of Manila Bay.
But this doesn’t mean that nothing is happening on the property allotted for the casino complex of Okada’s Tiger Resorts Leisure & Entertainment Inc.
In fact, construction is proceeding at a healthy clip and the main structure is now six storeys high (with a few more coming in the next few months, we’re told).
The main issue bugging the Japanese pachinko magnate, however, is his continuing and protracted search for a local partner to help him facilitate doing business in the country.
To recall, Okada has previously had talks and tentative agreements with the Gokongwei and Century Properties groups, both of which have come to naught.
Word on the street now is that he has found a potential new partner who may help clear the many roadblocks faced by his group locally.
The partnership won’t come cheap, however. The prospective partner will have to pony up as much as $1 billion for his share in the mega casino as envisioned by Okada.
And who is this potential partner Okada is wooing? We hear it’s a businessman with blood ties to the current occupant of Malacañang.
To narrow it further, here’s another clue: This businessman is also serving as the local partner of a high-profile foreign businessman whose assets fly the colors red and white.
In any case, if Okada manages to seal this partnership—and finally move the project forward—the P100-million Pagcor fine will be nothing but peanuts. Daxim L. Lucas
Strategic option
After selling the call center business under Stream Global Services Inc., the Ayala group is still left with three units under the business process outsourcing (BPO) sector, mostly categorized under the high-value or knowledge process outsourcing (KPO) sub-segments. These are Integreon, Affinity Express and IQ Back Office.
The group is now trying to grow this remaining business segment into such a scale that will make it “more relevant.” However, the group is not averse to cashing out of these remaining businesses, if an attractive proposition arises. Ayala Corp. chief finance officer Delfin Gonzales Jr. says that selling these units remains a “strategic option.” Doris C. Dumlao
Subic land row
The legal dispute over ownership of a one-hectare property located in the Subic Freeport Zone continues to rage after the inhibition of Judge Richard Paradeza of the Olongapo City Regional Trial Court from conducting further hearings amid a plea by one of the parties for a re-raffling of the case.
Subic Coastal Development Corporation (SCDC) has also filed a complaint before the Office of the Ombudsman against Judge Paradeza for violation of the Anti-Graft and Corrupt Practices Act.
Based on a petition by former Zambales Governor Vicente Magsaysay, Paradeza issued an injunction on the construction of a manufacturing facility on the 1-hectare property by Cresc Inc., a Japanese firm.
SCDC also filed a complaint against the judge before the Supreme Court for allegedly “knowingly rendering an unjust decision.”
In asking for the judge to recuse himself from the case, SCDC alleged that Paradeza had lost his neutrality.
The case started in 2002 when the Subic Bay Metropolitan Authority (SBMA) leased out 16.5 hectares to SCDC. Then Zambales Governor Magsaysay offered to assist SCDC in clearing the leased property, where it built the Moonbay Marina Resort.
SCDC alleged that, in 2008, Magsaysay demanded that he be given control of 1-ha of the 16.5-ha property as “payment” for his help in clearing the leased property.
A compromise deal was later signed by SBMA, SCDC and Magsaysay’s Mobi and Red Enterprises (MRE).
The 2008 agreement stipulated that SBMA would allow MRE to sub-lease the 1-ha property if the Magsaysay-owned company would meet all of SBMA’s conditions within 30 days.
In the event of MRE’s failure to meet the conditions and failure to secure a sub-lease from SBMA, the 1-ha property would remain with SCDC.
SBMA’s lawyers later confirmed that the deal did not take effect because MRE failed to meet the agreed terms and it failed to secure a sub-lease from the SBMA for the property.
SBMA also affirmed that legal control of the 1-ha never left SCDC as SBMA continued collecting rent from SCDC.
“We invested in Subic Freeport in response to the Aquino administration’s efforts to attract foreign investments to the country,” Cresc said in a statement. “But we are now having second thoughts about our investments here as we now find ourselves in a legal dispute that has jeopardized our business expansion and impaired our capability to meet global demand for our ink products.”
It goes without saying, of course, that foreign investors are watching this case very closely. Daxim L. Lucas
Best broker… again
Asia’s longest-running independent brokerage and investment group CLSA was again voted by global fund managers as the top brokerage for best overall country research and sales services, and best execution firm in the Philippines.
Based on the 25th Asiamoney Brokers Poll 2014—which surveyed more than 5,000 institutional investors across Asia, Europe and the US—CLSA Philippines was voted No. 1 “Best Overall Country Research” for the fifth consecutive year and the “Most Independent Research Brokerage” in 2014.
CLSA Philippines was also voted for having “Best Research Coverage” for almost every sector it covers in the country, including banks, consumer discretionary, consumer staples, diversified financials, energy, industrials, materials, small caps, telecommunications, transportation and utilities, as well as macroeconomics and strategy.
CLSA’s research team is headed by Alfred Dy.
Fund managers have also voted CLSA Philippines the best brokerage in the country for sales services and execution. It won “Best Overall Sales Service” and “Best Execution” for the seventh consecutive year.
CLSA’s head of Philippines sales, Alex Dauz, retained the title of “No. 1 Best Salesperson” in the country for the fourth consecutive year.
In a new category this year, CLSA Philippines’ Ruby Lao was awarded “Best Sales Trader.”
CLSA also achieved the highest rankings for corporate access, road shows, company visits as well as events and coverage.
“The top priority for CLSA Philippines is to deliver unrivalled service to our clients, and be the absolute best in accurate independent research analysis,” CLSA Philippines country head Mitzi De Dios said. “We are committed to upholding the exceptional standards that our clients have come to expect from CLSA.” Doris C. Dumlao
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