Biz Buzz: Farm tour
Businessman Manuel V. Pangilinan —who has been building up equity position in listed sugar firms Roxas Holdings and Victorias Milling Corp.—inspected some sugar farm sites over the weekend in search of more investment opportunities in the farm sector.
A team led by MVP himself checked out more than 15 hectares of agricultural land in Luzon for potential sugar farming and another 30 hectares further north. The group is likewise combing the South for potential investments and is interested in other crops like bananas, according to our source.
“The focus will be on crops where the Philippines can make a difference,” the source said.
The group has also nominated two potential directors to the VMC board for the upcoming Feb. 3 shareholders’ meeting: MVP himself and Ray Espinosa.
However, there are 14 nominees vying for 11 slots in the board. Based on a disclosure to the Philippine Stock Exchange, however, the nomination by the MVP group would have to be cleared by the Securities and Exchange Commission to ensure that it would not violate company bylaws and manuals for good governance.
Well-placed sources cited a non-compete clause in VMC’s charter, which constrains any officer or director of a competitor from sitting on its board. MVP is vice chair of Roxas Holdings, where his group controls about a third of voting rights.
In VMC, industry sources estimated that MVP’s group must have culled (either bought or acquired commitment for) shares equivalent to 15-20 percent, approximating the 20-percent stake held by the LTG group. Another 25 percent is held by foreign fund CVI GVF Lux Masters and 15-17 percent by Bacolod-based Narra group.
With such a diverse ownership structure, VMC remains at play for consolidation. Doris C. Dumlao
PBCom shakeup
THE LUCIO Co-controlled Philippine Bank of Communications (PBCom) has been the favorite topic of industry chatter these past few weeks due, in general, to changes being implemented by the new shareholder who is more comfortable getting down and dirty in the retail market as opposed to the more upscale sectors.
In particular, these strategic changes mean—you guessed it—staff reductions at the bank that was previously controlled by businessman Eric Recto.
According to our sources, PBCom has experienced a number of high-profile personnel departures of late as the new management reorients the financial institution toward working closer with Co’s Puregold retail empire.
Because of this, anywhere from “12 to 20” senior staffers have either left or are in the process of leaving the bank, with the possibility of a few more to follow.
The highest ranking bank official to depart is Patrick Cheng, the former president of HSBC Savings Bank, who was brought on board last year to help build PBCom’s wealth management business.
When Cheng was hired, the bank’s then controlling shareholders envisioned a very different bank, especially since they were talking to a number of local and foreign financial institutions for potential strategic partnerships. One potential partner, we understand, was Malaysian banking giant CIMB, which had previously tried to establish a foothold in the Philippines through Bank of Commerce—an effort that was eventually abandoned after protracted talks.
The unexpected entry of Co into PBCom led the bank to a new direction and left Cheng and some of the new hires in an awkward position. Another senior official who is departing is the bank’s head of technology, we understand. So some of them left of their volition (although some had to be told).
In any case, they were paid generous severance packages, according to our sources.
As for that rumor that some officers were leaving because they were being forced to invest in debt securities issued by Lucio Co firms, our source could only shake his head in disbelief: “First of all, Lucio Co is allergic to debt. Secondly, he’s very liquid. I don’t think he needs to borrow from anyone.” Daxim L. Lucas
Speaking of which…
Retailer and banker Lucio Co has expressed keen interest in taking over the dealership of Ferrari, Maserati, Jaguar and Land Rover from affable car connoisseur Willy Soong.
A buzzard from Co’s group confirmed that the Filipino-Chinese businessman—number 12 on Forbes list of Filipino billionaires with a net worth $1.7 billion —had indeed been intrigued at the prospect of owning the rights to peddle some of the world’s famous, luxury automobile brands.
But our buzzard said Co had so far made no commitment.
Biz Buzz reported Monday that Soong had quietly made it known to a few friends that he was willing to let go of his exclusive dealership for these exotic cars. Soong has yet to make any comment.
Our buzzard told us that Soong approached PBCom late last year for an additional credit line. The buzzard did not say for how much Soong was asking and whether it was granted. Co is the single biggest shareholder of PBCom following his purchase of shares held by Marcos trade minister Roberto V. Ongpin.
Co built the low-brow Puregold supermarket chain into the country’s second-largest retailing group behind SM of the richest Filipino Henry Sy.
Should Co decide to swoop down on Soong’s baby, will his Midas touch work with the hoity toity as well as it did with the hoi polloi? Gil Cabacungan
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