Remember businessman Mr. T who’s in trouble with influential, loaded and well-connected Mr. U for blocking the latter’s acquisition of shares in a logistics firm controlled by the former?
Well, new information has surfaced that may put Mr. T into trouble with corporate regulators.
A number of sources contacted Biz Buzz this week to point out that the logistics firm in question may actually be in violation of the 40-percent foreign ownership limit imposed by the law on companies operating as public utilities. And since this logistics firm owns vessels and is engaged in the shipping business, it very well falls under this prohibition.
Two sources, speaking to Biz Buzz separately, have pointed out that this firm has two large foreign shareholders apart from Mr. T himself. One shareholder is a firm registered in a European country, but owned by wealthy Middle Eastern principals. Another is a foreign investment fund, which owns a bigger stake, but is mostly a passive investor. Together, both foreign entities control up to 70 percent of this logistics firm’s stock.
“The bottom line is this: Is this company even a Filipino firm?” asked one shipping industry source incredulously.
Of course, there’s an easy way to solve whatever question about foreign ownership is hanging over this logistics firm. If Mr. T removes the legal roadblocks he’s put in the way of Mr. U—who has struck a deal with one of the foreign investors to buy them out, then the entry of Mr. U (who is a true-blue Filipino, despite his short surname) will surely bring the company’s foreign ownership back within limits.
But then again, we have a feeling that this will happen anyway with or without Mr. T’s cooperation. You see, as far as business is concerned, Mr. U’s star is on the rise, given his business acumen and ties with the current powers that be. So we really wouldn’t be surprised if Mr. U ends up not only as a minority shareholder in the logistics firm one of these days, but its new majority owner. —Daxim L. Lucas
Airport uncertainty
It’s high time for the Department of Transportation to make a clear airport policy decision for Luzon. After all, what used to be a somewhat vague dual-airport policy has somehow morphed into a four-airport uncertainty, ever since the Duterte administration opened the door to unsolicited proposals.
Since that time, we have a Bulacan air gateway proposal from San Miguel Corp. and a Sangley Point, Cavite, reclamation offer by the Tieng-Henry Sy Groups. Then, of course, there’s the development of Clark International Airport in Pampanga and the perennial question: What to do with the current Ninoy Aquino International Airport in Manila?
What we know so far is this: Naia’s operations and development will be privatized under a public private partnership (PPP) scheme, likely under a long-term contract, given its P75-billion price tag, and Clark’s expansion will be pursued.
Where does this leave the new airport proposals mentioned above? Given the lack of clear statements from the DOTr, no one is quite sure. That has also left others in the private and public sectors to fill in the vacuum.
Just this week, Clark International Airport president Alexander Cauguiran gave some clues by first defining what the dual airport policy means. First he split Luzon into two major parts, meaning Naia or whichever new gateway will serve most of Metro Manila and southern provinces “up to Bicol.” Meanwhile, Clark would handle central and northern Luzon and parts of northern Metro Manila.
“If somebody wants to put up in between, will that be economically viable? I doubt it. I seriously doubt it,” Cauguiran said.
To be certain, a Naia replacement is absolutely needed, given Naia’s geographic constraints and the fact that it is operating well above its design capacity. Already, it’s looking a bit ambiguous for the private-sector airport proposals because of the Naia PPP plan. The project already obtained the approval of President Duterte. All that is left is for the DOTr to roll it out to bidders, which interestingly, it has yet to do.
A clear policy decision from the DOTr could come in the form of more details regarding the Naia PPP, and when this gateway will eventually be closed down to make way for a newer airport with real expansion potential.
For now, at least one private sector proponent is saying the Naia PPP is not needed. Edmundo Lim, part of the group that is proposing a P1.3-trillion Sangley reclamation, said the government needed to look at the “bigger perspective” when planning for a new airport. For him, the Naia PPP was a step in the wrong direction.
“What will a new terminal do if a runway can’t handle so many aircraft. It’s useless,” Lim said. —Miguel R. Camus
Watch out for NU
Now that Hans Sy has retired as SM Prime Holdings president, he has more time to focus on growing non-sectarian co-ed educational institution National University (NU). In the years ahead, we can expect NU to branch out and build new campuses within the vicinity of SM malls. We can also expect NU to merge with another tertiary educational institution that the Sy family owns, the Asia Pacific College.
At the sidelines of the MAP Management Man of the Year 2016 awarding Tuesday (his sister Teresita Sy-Coson is this year’s honoree), the NU chair said that over the next five years, his marching order was for NU to develop faculty.
“One of the difficulties were facing right now is people. Human resources. There’s very limited faculty,” Sy said, noting that very few people now study or aspire to be teachers and for many of those who do go into teaching, many are lured by greener pastures abroad.
NU, which operates its campus in Sampaloc, Manila, to date has around 8,500 students while the computer science-focused Asia Pacific College has about 3,500. “Eventually, it will be merged together,” he said.
On setting up NU campuses in SM malls, these will not be exactly inside the shopping malls. It will be on a separate structure to be built on unused parcels of land within the mall complex. “As you know, there are certain limits to a mall as we expand. We expand offices, expand call centers, why not (build) a school?”
Going after the low-hanging fruit first, Sy said the strategy would be to build new NU campuses in Metro Manila, then venture to other parts of Luzon and eventually gain a foothold in Visayas and Mindanao.
“Education is a great equalizer,” Sy said, quoting his father, tycoon Henry Sy Sr. —Doris Dumlao-Abadilla