Biz Buzz: FTI brouhaha

The P-Noy administration’s privatization route for the much-coveted 103-hectare Food Terminal Inc. complex in Taguig is facing tough scrutiny from a number of property players. The front-runner in this prime asset sale is widely believed to be property giant Ayala Land Inc. (ALI) through a P19-billion joint-venture scheme with the government. But other parties, which submitted a cash bid for FTI, argue that it was more transparent and financially favorable for the government if it were to bid out the property.

In a phone interview Tuesday, Empire East president Charlie Yu noted that although the government could resort to a negotiated deal given that there were two failed auctions during the previous regime, the business environment has improved greatly since then, and P-Noy’s team has a much-better chance of selling this prime asset at a better price.

“We don’t know why it has become hush-hush. It’s just strange that it’s so quietly done,” Yu lamented. “We feel that public bidding will generate more revenues than a Swiss challenge [after accepting an unsolicited proposal].”

Whether it will be an asset sale or lease, Yu said the government could take advantage of the fact that there were many parties interested in FTI. Like Yu, other bidders said that if a P19-billion joint-venture deal (whether or not with ALI) would be enforced, the net present value of the scheme should be compared against outright cash proposals already on the table.

Although Empire East itself has no plans of bringing this to court, Yu said it was possible that other parties would, possibly citing grounds of lack of transparency. If so, the government would only miss the boat as any court case could delay any deal for years, he said.

If the government’s goal was to generate more revenues, Yu said there was another option on the table given the huge interest in FTI these days: come out with a master plan and parcel out the property to four developers rather than award the huge complex to any single player.—Doris C. Dumlao

Tell me who your guests are…

The inauguration of a showroom for high-end cars and SUVs in Taguig City a few weeks ago was well attended by the country’s who’s who, many of whom were also car aficionados, according to our source. That is, it was well attended until one specific guest showed up at the cocktail event.

Our source said that once this person arrived at the event, people started heading for the door (or “slinking out the door” may be the more accurate description), lest their presence at that event make them targets for closer “scrutiny.”

Those who managed to escape the premises were seen signaling their drivers to pick them up either a few meters before the red carpet at the front door or a few meters after that spot, lest they be seen boarding their expensive cars and SUVs. By one estimate, about half of the patrons and would-be buyers of the spanking new British luxury vehicles evaporated within a few minutes of this guest arriving.

Who was the guest that everyone was afraid of? Commissioner Kim Henares of the Bureau of Internal Revenue.—Daxim L. Lucas

11.11.11

Mang Inasal has been flooding the media with its 11.11.11 ads, from TV to newspapers to outdoor billboards. But what does it all mean? Of course, it’s been a year since Jollibee acquired the fast-food chain and there are several theories going around about the campaign, including the unveiling of a P1.1-billion investment in its commissary and food-processing facilities as it prepares to open its 600th branch next year.

The chain is also expected to unveil a revamped menu on that date, while some others speculate that it will announce the acquisition of another inasal-themed restaurant.

Of course, the ad also suggests that a famous boxer could be launched as the brand’s new endorser. (By the way, the Pacman’s favorite dishes supposedly include Mang Inasal’s Paborito Meal #2 Pecho and bangus sisig.)

We also heard that Mang Inasal may open another 11 branches on the 11th, making it the second-biggest restaurant chain under the Jollibee group, next only to the parent brand Jollibee (and it may also open 11 new stores in 11 different locations overseas).

TV networks are also abuzz with rumors that Mang Inasal will launch a reality TV show (a la “The Apprentice”) where company founder Edgar Sia II—the country’s youngest billionaire—will play a Donald Trump-style role.

So what will it be this coming 11.11.11? Maybe all of the above, maybe some of the above. Only three more days till we find out.—Daxim L. Lucas

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