BIZ BUZZ: SkyCable spills more tea
So, why again did the proposed PLDT takeover of the Lopez family’s SkyCable Corp. implode?
SkyCable, via majority owner media giant ABS-CBN Corp., provided more details on Monday.
Specifically on the large liabilities found at the cable TV company, SkyCable said it “fully disclosed all financial information related to the deal over the due diligence review, but the parties were unable to agree on the commercial terms.”
The parties were well aware of SkyCable’s debts when the deal was first announced last year, Biz Buzz sources said.
The major question is why introduce changes late in the negotiations when the major obstacles, including the crucial approval from the Philippine Competition Commission, were cleared.
What changes are we speaking of?
Sources told Biz Buzz that PLDT wanted to lower the acquisition price from P6.75 billion to the vicinity of P4 billion. It also wanted a big reduction in SkyCable bank debts to be absorbed, which we’re told was below P5 billion. PLDT also wanted another haircut on obligations owed to suppliers.
Accounting for all those changes, we understand the Lopez family would end up with a mere fraction of the multibillion peso amounts suggested in past announcements.
We’re sure a lot of consideration went into crafting the final offer. But with deal revisions that significant, it’s no surprise the parties failed to reach an agreement. —Miguel R. Camus
Hermosura joins Marcos gov’t
Legal eagle Solomon Hermosura, a recognizable and respected figure within the Ayala Group, has let go of his various roles within the group as he transitions to government service.
Word on the street is that Hermosura is taking his decades of legal expertise to join the Marcos administration as head of the Office of the Government Corporate Counsel.
Accordingly, Ayala announced that Hermosura resigned as its longtime senior managing director, corporate governance group head, chief legal officer, corporate secretary, compliance officer and data protection officer effective Feb. 29 this year.
He also resigned as corporate secretary and other roles at ACEN Corp., AREIT Inc., Ayala Land, Globe Telecom and Integrated Micro-Electronics Inc.
Hermosura, a member of the faculty of the College of Law of San Beda University, graduated valedictorian with Bachelor of Laws degree from San Beda College in 1986. He placed third in the 1986 Bar Examinations. —Miguel R. Camus
Wanted: New access road to BGC
The success of Bonifacio Global City (BGC) as a bustling new central business district has come at the cost of worsening traffic gridlock.
But what if an alternative route to BGC can be developed —one that can potentially ease the flow of traffic along Kalayaan Avenue?
As most BGC workers or visitors could attest, traffic flow on Kalayaan Avenue has become worse than on McKinley Road during peak hours, as the opening of the Pasig to Kalayaan bridge funneled more vehicles to this area.
Now this “shortcut ng bayan” has become the worst gateway to BGC, with around 38,000 cars plying this route daily, beating McKinley, which has a daily traffic load of 37,000, our sources estimate.
Biz Buzz heard that a proposal is on the table to open up Quingua St. along Barangay Pinagkaisahan in Makati, close to the entrance of upscale Forbes Park, initially to add one lane to serve one-way flow of vehicles to BGC.
“They are doing the study now,” said an industry source privy to the proposal. “Right now, it’s only two lanes; adding one lane is simple math … Why not make a separate lane going to Bonifacio?”
Since opening up a new road is always a sensitive issue, especially to the surrounding community, the source said it was possible to develop this new road to BGC initially with just limited access.
In the beginning, allow only emergency vehicles like ambulances. From there, if it turns out to be useful, it can later on be opened to the public.
Our source said the proposal has reached the local government, which is receptive to the idea and just wants to “see the figures” first.
“Everybody working there (Taguig) can get to the office 10 minutes earlier, and that’s a big deal,” the source said. —Doris Dumlao-Abadilla
