BIZ BUZZ: Lopez vs Lopez

For those viewing the unfolding Lopez saga from the sidelines, one measure being used to decide which side to cheer on is value. Who is delivering it?

Here are some numbers being studied.

The side of embattled Federico “Piki” Lopez—who is being ousted as president of the family holding firm by his cousins—is credited for building the power generation business that now brings in the bulk of the profits.

First Gen Corp., which went public in 2006, has a market capitalization of over P63 billion even after all the corporate actions being questioned and the poor stock market.

At its peak in 2021, it had a market capitalization of over $2 billion.

Then there’s ABS-CBN Broadcasting Corp., once helmed by eldest cousin Eugenio “Gabby” Lopez III and the leader of three of the four Lopez families.

Even before it lost its franchise in 2020, it already incurred a net loss pf P2.64 billion, in part caused by impairment losses on its telecommunications, theme park and attractions businesses during the period.

And it got steadily worse from there, no thanks to the loss of the franchise that dealt it a body blow, although it has managed to significantly reduce its losses.

As of end-September last year, its losses had gone down by 17 percent to P1.99 billion and said it was well on its way back to profitability.

Which still raises the point being made by those in busy social circles talking about the Lopez family saga that perhaps emotions should be set aside and just let the numbers do the talking.

That should very well decide who would be the better manager of the holding company.

But then again, speaking of numbers, Piki unfortunately remains outnumbered at the Lopez Holdings level, since his side – the Oscar wing – is just one against the other three of Geny, Manuel and Presy.

The battle for control is now up to the courts. Let’s see which side will be upheld. —Tina Arceo-Dumlao

Coming soon: Sy-led gold mining powerhouse

Conglomerate SM Investments Corp. (SMIC) indicated plans to unload its 34-percent stake in copper/gold mining firm Atlas Consolidated Mining & Development Corp. in early March.

But if you think that the Sy family is exiting the mining business, think again.

As an asset class, gold is still very much in play and a great hedge against the geopolitical uncertainties today. And why exit when the turnaround phase of Atlas has just begun?

From what Biz Buzz gathered, SMIC is just keen on transferring its stake to another privately held company that’s still controlled by the Sy family.

This streamlines the list of investee-companies under the portfolio outside SMIC’s core businesses — banking, property and retailing. It cuts the “odd one” out.

After all, the rest of the portfolio investments are still, in one way or another, related to SMIC’s core businesses.

Aside from Atlas, the Sy family also controls the Tampakan mine, touted as Southeast Asia’s largest undeveloped copper-gold project and potentially the Philippines’ largest mining venture.

And here’s a new twist. We hear that the Sys are now considering to consolidate all its mining interests under one roof.

This means: it could create the largest gold-copper mining firm in Southeast Asia.

This is also reminiscent of how they consolidated SM Prime Holdings and SM Development Corp. back in 2013 to create a new property powerhouse.

What the Sy family is contemplating is even bigger than just backdoor-listing Tampakan. It’s a new mining blue chip in the making. —Doris Dumlao-Abadilla INQ