BIZ BUZZ: Credit Suisse Securities ‘MBO’

We’ve seen it a few times before in the local capital market. When the foreign principals exited—like Merrill Lynch and Deutsche Bank (stock brokerage) and Kim Eng (investment house)—the local management and partners stepped up to the plate.

Now that Credit Suisse is unwinding its Philippine operations amid a global merger with UBS, we hear from the reliable grapevine that the management team of its equities arm, Credit Suisse Securities (Philippines) Inc., is working on a deal to buy the entity. The management will then rebrand and continue to operate the broker-dealer.

Credit Suisse Sec PH, which caters to institutional clients, is led by its president/head of cash equities Rene Joseph Ner and nominee/head of sales Joselito Vicencio Jr. The brokerage house ranked 18th in the Philippine Stock Exchange for the January to April period, accounting for around P23.5 billion worth of trades or a market share of 2.1 percent.

Doing a management buyout (MBO) is no easy feat. During the exodus of foreign brokers at the turn of the millennium, only a few MBOs had been executed. There’s a steep price tag for professional stock brokers to buy control.

These days, a new brokerage house or even an old one that will have a change in controlling ownership is required by regulators to cough up at least P100 million in new capital.

But the advantage of doing an MBO is that, since the deal involves capital market veterans, getting regulatory approval to buy a seat at the demutualized exchange is easier than if new faces want to come in. All the MBO movers have to do is to come up with the moolah.

Now we hear that the management of Credit Suisse Sec PH is getting help from someone who had successfully done a stock brokerage MBO. You’ll find clues within this very piece.

– Doris Dumlao-Abadilla

New Filinvest COO

After retiring as long-time chief financial officer (CFO) of fast-food giant Jollibee Foods Corp., Ysmael Baysa isn’t about to fade into corporate oblivion anytime soon.

Baysa has joined Gotianun-led conglomerate Filinvest Development Corp. as the new chief operating officer. In this new role, he is responsible for overseeing FDC’s day-to-day operations, implementing strategic initiatives and driving the company’s growth agenda.

With his proven track record and deep industry knowledge, he is widely expected to contribute significantly to FDC’s continued growth.

An accomplished professional with an extensive background in the consumer sector, Baysa brings a wealth of experience and expertise to his new role. His appointment comes at a pivotal time as FDC gears for long-term growth and expansion.

Baysa has established a stellar career in accounting and finance. Before Jollibee (where he still serves as a trustee and the treasurer of Jollibee Group Foundation today), he had worked at Procter & Gamble, holding various local and regional positions, including the role of head of finance for the Philippines, Malaysia and Singapore. In 2010, he was named CFO of the Year by the Financial Executives Institute of the Philippines.

“We are pleased to have Mr. Baysa join FDC as our new chief operating officer. His leadership skills will be invaluable in driving our strategic investments, ensuring operational excellence at the parent company and across our diverse holdings. He will also play a vital role in guiding our corporate governance and sustainability initiatives,” said Josephine Gotianun Yap, FDC president and CEO.

– Doris Dumlao-Abadilla