BIZ BUZZ: SM out to encash some gold
The rumor mill has been aggressively running to keep tabs on the Tampakan mining project—Southeast Asia’s biggest untapped gold-copper reserve —and we’ve got news.
A reliable source familiar with the matter confirmed that the Sy family, which owns the majority of the mine in South Cotabato province, is in talks to sell “part of their shares” to other investors.
“But they will retain majority [shareholding],” the source stressed.
READ: BIZ BUZZ: Going for gold: Tampakan lures new investors
Biz Buzz earlier found that a Chinese group was taking interest in the mining project, in which the Consunji family also has a 10-percent stake. Bloomberg recently reported that Aluminum Corp. of China was in talks to buy into the project in an equity deal estimated at $2 billion.
Now the question is: Why is the SM Group willing to bring in another investor? What’s the benefit … or the catch?
Article continues after this advertisementThe source makes a fair point: “It makes a lot of money. If they (SM) sell [their shares] today, they will make nine or 10 times more the price [they initially paid],” especially with the record-high prices of gold in the global market.
Article continues after this advertisementAnd while SM is a formidable conglomerate, it probably won’t hurt to raise a little bit extra moolah to fund its $3-billion Manila Bay reclamation project.
We’ve yet to confirm whether SM will shed part of its shares before the start of Tampakan’s commercial operations in 2026, but with the $1-billion SM Prime real estate investment trust public offering not happening too soon, selling part of Tampakan is increasingly a tempting option. —Meg J. Adonis
New airport PPP
The Department of Transportation (DOTr) is keen on developing regional airports to cater to more local and international flights.
While the government has infrastructure projects of its own, it has also been tapping the expertise and financial resources of the private sector through the public-private partnership (PPP) scheme.
And the government has been receiving so much interest from the private sector. DOTr Secretary Jaime Bautista said that a new unsolicited proposal for a regional airport project would be submitted soon.
He did not provide specifics yet, but he said this would service a major hub where huge passenger volume is expected.
So far, among the regional gateway projects being developed under the PPP scheme are Laguindingan, Bohol and Cavite.
Where will the next major airport rise? Let’s see! —Tyrone Jasper C. Piad
