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PLDT counters Globe’s claim

Roy — Sat, 30 Apr 2011 02:02:45 +0000

The Philippine Long Distance Telephone Co. (PLDT) said the claim of Globe Telecom that the deal between PLDT and Digital Telecommuncations Phil. Inc. (Digitel) would result into the monopoly of the telecom industry is only Globe’s way of protecting its interest at the public’s expense. PLDT criticized Globe’s effort to stop the deal that would allow the telecom giant to take over third-ranked mobile brand Sun Cellular.

PLDT said that the acquisition of Sun would actually result in a more efficient use of network facilities, which would lead to better services at lower costs. “Globe wants to create the impression of an impending monopoly by PLDT, which is not the case,” said Ray Espinosa, regulatory affairs head of the company. “What they really want is for the government to make up for their inefficiencies.”

Earlier, Globe asked the National Telecommunications Commission (NTC) to intervene in the deal between PLDT and Sun Cellular operator Digitel. Globe claimed that a monopoly would emerge from this deal and this could only work for the detriment of the industry and consumers. Globe also said that the deal would give the combined entity 3.5 frequencies for every one that Globe has, creating an imbalance.

Espinosa countered that based on the data available at the NTC, PLDT is in fact 23-percent more efficient than Globe in terms of frequency use. This means PLDT, which has 45 million subscribers, need more frequencies than Globe. He said Globe should instead allow market forces to work and let the consumers decide for themselves which is the better network.

With the claim that the PLDT-Digitel would give them 70 percent control of the market that would eventually kill competition, Espinosa said that at the end of the day, it all boils down on to which network can offer the better service, regardless of the size of the company.

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Globe asks NTC to intervene in the PLDT-Digitel deal

Roy — Thu, 28 Apr 2011 21:37:16 +0000

Globe Telecom, in its letter to the National Telecommunication Commission (NTC), is asking the agency to take a look, and intervene, in the recent acquisition of the Philippine Long Distance Telephone Co. (PLDT) of a majority stake of Digital Telecommunications Phils. Inc. (Digitel). Globe warned that the PLDT-Digitel is threatening to free competition and gravely places at risk the public good, because other significant market influence of PLDT as a result of the deal.

Atty. Rodolfo Salalima, acting as counsel for Globe, referred to Republic Act No. 7925 or the new Telecoms Policy Act, which was enacted into law on March 1995 because of the need for the country to liberalize and demonopolize and to veer away from the monopoly of the dominant carrier which, because of its dominant clout, power, and influence, constricted and stifled, instead of led, the growth and expansion of public telecommunications services in the country.

Salalima quoted the then Senator John Osmena in his sponsorship speech of Senate Bill 11 (which is now RA 7925) that “our telecommunications system has been cited as backward, inadequate, and a major constraint to the global competitiveness of our industries.”

“(NTC) must intervene and act now. It cannot and must not shirk from its legal obligation to intervene in the PLDT/Digitel deal and regular, if not forestall, the deal’s grave implications and impact on free competition and, in the long term, the common good. The inherent police power of the state can and must also be utilized for the common good,” he added.

Salalima stressed that the NTC must start leveling the playing field now in the name of free competition or risk a return to the monopoly of old and precisely abandoned by RA 7925, adding that PLDT’s cellular market share, because of the deal, has now grown to 70 percent, while that of Globe is 30 percent.

PLDT recently acquired 51 percent of Digitel, which owns the Sun Cellular brand, from the Gokongwei Group, and hopes to purchase the remainder from small shareholders during a mandatory tender offer.

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Philippine tuna company acquires US salmon company

Roy — Thu, 28 Apr 2011 13:51:25 +0000

Philippine company Alliance Select Food International Inc. sealed a deal to acquire 100 percent of US company Spence & Co. Ltd., a Massachusetts-based salmon smoking and curing company who specializes in the production of smoked salmon and seafood, prepared in the Scottish tradition of its founder Alan Spence. The company caters to the high-end market in the USA and Europe.

The Alliance, in its disclosure to the Philippine Stock Exchange (PSE), said it had signed an agreement to acquired the US fish company lock, stock and barrel through subsidiary ASFI Choice Foods Inc. for $8.5 million.

Alliance spokesperson Rajat Balain said, “An investment in Spence is another step towards Alliance’s goal of diversifying its product line to enhance shareholder value and ensure future profitability. This will be Alliance’s third smoked salmon venture, making it the largest salmon processor in the region, and will help it establish a beachhead in the lucrative seafood market in the US.”

To partly finance the acquisition of Spence, Alliance will be conducting a stock rights offering. The company already gave the approval for the said offering. The PSE suspended trading of Alliance starting 9 a.m. Tuesday pending the submission of additional disclosure pertinent details on the transaction.

Alliance started commercial operations in General Santos City in Mindanao in 2004, it was formerly known as Alliance Tuna International and engages in tuna processing, canning and export of canned tuna products. It exports to Europe, North America, Asia, Africa and South America as a “private label manufacture,” which means it processes and cans tuna using its customer’s brands.

Part of its overseas expansion in recent years is the company’s aspirations to become a regional food company with a “decidedly Filipino DNA.” Alliance is always on the lookout for opportunities in regional seafood companies with high margins and high-value products.

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DTI’s trade mission to India produces $42 M investment pledges

Roy — Fri, 22 Apr 2011 15:59:24 +0000

The Department of Trade and Industry (DTI) reported that their recent trade and investment mission in India have generated new investment pledges worth $42 million. Trade Secretary Gregory Domingo said they were from three energy projects and a pharmaceutical packaging ventures.

The Philippine delegates, led by Domingo, attended the recent ASEAN-India Business Fair and Conclave held in New Delhi in its bid to penetrate India’s trillion dollar market. Other members of the Philippine mission were the Department of Agriculture, Department of Tourism, Department of Foreign Affairs and the Philippine India Business Council of the Philippine Chamber of Commerce and Industry.

Domingo said he was able to convince Indian businessmen to invest in the Philippines during his first official trip, and the trade department’s first mission to India. “India is emerging as a source of foreign direct investments (FDIs) for the Philippines. Apart from BPO companies which are directed by their principals to open delivery centers in the Philippines, more Indian companies are continuing to realize the potential of the Philippines as a gateway to the lucrative ASEAN market,” he said.

The investment pledges acquired by DTI include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra.

According to Domingo, the trade department is working on several initiatives for Indian businessmen locating in the country which include the improved business registration procedures; and relaxed visa norms for senior executives of IT and BPO companies. Add to this, he also announced the recently inaugurated direct flights from Manila to New Delhi of the Philippine Airlines (PAL).

During their trip, Domingo also witnessed the signing of a memorandum of understanding (MOUs) between the Associated Chamber of Commerce in India (ASSOCHAM) and the Philippine Chamber of Commerce and Industry, and between the Federation of Indian Mining Industries and the Philippine Chamber of Mining Industries represented by Philip Romualdez, to promote trade, investments, and economic relations between India and the Philippines.

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Metro Pacific bids to run and maintain LRT and MRT

Roy — Sat, 16 Apr 2011 09:01:55 +0000

The Department of Transportation and Communications (DOTC) sent invitations to qualified parties to submit an expression of interest for the interim contract (4+1 years) of the operations and maintenance of Light Rail Transit (LRT) 1 and Metro Rail Transit (MRT) 3 system.

One of those who submitted a letter of intent was the subsidiary of Metro Pacific Investments Corp. (MPIC), Metro Pacific Light Rail Corp. (MPLRC). The MPLRC filed its expression of interest for an interim contract to undertake the operation and maintenance of both the LRT1 and MRT3.

According to MPIC, its proposal submitted is more comprehensive as it includes, among others, a long term O&M, capacity and rehabilitation of MRT3 and its integration to LRT as one system. In support to the government’s public-private partnership (PPP) program, the company agreed not to interpose any objection to the bidding of the interim O&M contract for LRT1 and MRT3 on the undertaking that in line with government’s transparency policy and in accordance with MPIC’s rights as a stakeholder in the Metro Rail Transit Corp. (MRTC), the rights of the latter over MRT3 will be fully disclosed in the terms and reference of the bidding for the said interim contract.

The company also stressed that it has not withdrawn its proposal to expand MRT3 which it submitted to the DOTC last January 17. The MPIC said it maintains its position that the private shareholders of MRTC have the legal right to assert MRTC’s rights over the maintenance of MRT as well as the expansion rights over MRT, both contained in the existing build-lease-transfer (BLT) agreement.

Likewise, the MPIC will not object to the bidding of the LRT1/MRT3 O&M contract provided that the maintenance and expansion rights in the existing BLT agreement are recognized and disclosed in the TOR for said bidding.

The MPIC controls about 64.07 percent of MRTC after acquiring the 28.04 percent interest of the Sobrepeña-led Fil-Estate group as well as the interest of other shareholders such as Anglo Philippine Holdings Inc., DBH Inc. and Railco Investment Inc.

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DOE cancelled 70 renewable energy contracts

Roy — Sat, 16 Apr 2011 06:10:34 +0000

About 70 renewable energy service contracts were cancelled by the Department of Energy (DOE) as part of its effort to weed-out “non-performing contracts” and offer them to more serious investors. Energy Undersecretary Jose M. Layug Jr. also said that licenses covering four prospective petroleum blocks were likewise cancelled.

The energy undersecretary said that the 70 companies to whom services contracts were awarded have failed to comply with the work program commitments as specified under their contracts. However, Layug noted that the companies were given a 60-day period to fix or submit the necessary documents and appeal to the DOE why their licenses should not be cancelled.

After the 60-day period, if no actions were taken or the companies were not able to justify themselves, the contracts will be offered to “more serious” investors who can deliver the necessary investments.

Layug explained, “Of the 227 renewable energy service contracts, we have 70 service contracts in renewable energy that we have sent show-cause letters to for non-performance. Every contractor has a period of work commitment. If you don’t comply, we cancel it.”

He added that, “The others were even silent despite our show-cause letters but there were those that eventually and immediately volunteered, about 10 of them, and we appreciate it.” He further noted that most those that were cancelled concerned hydropower projects.

Since Energy Secretary Jose Rene D. Almendras took the top seat of the energy department last year, the DOE has started a stringent review of all the contracts that have been awarded by the agency to ensure that there were no irregularities involved in their granting.

The 227 renewable energy service contracts were earlier estimated to generate at least 4,500 megawatts (MW) in additional capacity for the country’s three main grids. Initial investments for the service contracts were seen to reach around P90 billion.

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PLDT assured market would still be competitive after acquisition of Digitel

Roy — Fri, 15 Apr 2011 04:12:21 +0000

The Philippine Long Distance Telephone Co. (PLDT downplayed fears that its takeover of rival Digitel Telecommunications Philippines Inc. would hinder competition in the local telecommunications industry. The telecom giant in fact said that the PLDT-Digitel merger would even be beneficial to the industry and would bring in better services and more competitive prices for consumers.

PLDT’s Manny Pangilinan said, “We will keep Digitel as a separate company. This is not a merger… more importantly, we will maintain the unlimited and bucket-priced services of Sun Cellular.” He assured that the PLDT group will officially set itself to developing widely accessible, high-speed internet. “We will make a formal commitment to the government for the benefit of consumers,” he added.

Pangilinan said that the acquisition of Digitel will help PLDT roll out broadband services to 95 percent of the country “in three years.” At present, only two-thirds of the Philippines has high-speed internet access.

The PLDT statement came out in response to the concerns raised by some consumer groups and lawmakers that the merger would allow the telecom giant to market prices, ending the “price wars” that have helped keep telecommunication services at affordable rates.

Rival Globe Telecom of the Ayala group even asked the government “to look into the deal” between PLDT and Digitel. Globe said that regulators should consider ordering PLDT to relinquish some of its redundant frequencies following its takeover of Digitel’s operations.

Pangilinan replied that this should only be done in the event of a scarcity of frequencies for new players in the market, which is not the case. He said, “Our frequencies are enough for the subscribers we have.”

After acquiring Digitel, PLDT will acquire 67 percent of industry revenues. Seven out of 10 mobile users in the Philippines will also be on its network.

Pangilinan, however, admitted that due to the size of the agreement, which is valued at P74.1 billion, a state review may be “warranted.” He assured the government though that the market would remain competitive.

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Azkals to hold tryouts to beef up its line-up

Roy — Tue, 29 Mar 2011 01:33:14 +0000

To beef up their line-up, the Philippine football team will be holding try-outs on April 9 to 10 at the Gellert Park in Daly City, near San Francisco. Team captain Aly Borromeo and defender Anton Del Rosario will conduct the tryouts, they are looking to recruit talents in the 15-24 age bracket. Borromeo and Del Rosario will supervise the tryouts, together with US college football coaches.

Del Rosario said, “The players are coming from all over. There were at least eight from the East Coast looking forward to the tryouts in New York City but we’ve asked them to fly to San Francisco instead so we can assemble the players all together. It’s more practical to hold the tryouts in the US than ask the players to fly all the way to Manila. We’ve got players coming in from Canada, too.”

Borromeo justified their plan to recruit from the US because bringing in players from overseas to suit up for the national team is a reality in the global game, “It happens all the time,” he said. “In our case, we’ve learned to adjust to each other. Players come just a few days before a match and leave right after. That’s how it is with a lot of national teams whose starts play for clubs in other countries. We’ve become familiar with each other. Coach Weiss doesn’t mind. As long as we’re winning, he’s happy,” Borromeo added.

He said he is also on the lookout for players who can see action with the under-23 squad at the Southeast Asian (SEA) Games in Indonesia this November. Goalkeeper Neil Etheridge, 21, reliever Christopher Camcam, 16, defender David Basa, 21, striker Yannick Tuason, 21, Fil-German Patrick Hinrichsen, 20, and Fil-Dutch Jason de Jong, 21, are among the players now in the under-23 pool.

The Azkals made history when they qualified for the first to the Asian Football Confederation (AFC) Challenge Cup proper cup tournament after placing second in the group stage in Myanmar last week. They drew with Myanmar and Palestine and then defeated Bangladesh.

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Lepanto sets 2011 capex at P700 million

Roy — Mon, 28 Mar 2011 20:34:18 +0000

Lepanto Consolidated Mining Co. Inc. has set aside P700 million for its capital expenditures for 2011. In its disclosure with the Securities and Exchange Commission (SEC), Lepanto said it would embark on an aggressive development program of the upper levels of the Victoria mine in Mankayan, Benguet where production for the year will be concentrated.

The company said the development of the Victoria reserve is expected to result in the expansion of the company’s gold production to 40,000 ounces this year. “Internal ramps and stop developments of over 16 kilometers will be prepared to dully delineate the production panels way ahead of extraction thereby making mining operations more efficient,” Lepanto said.

Funding for its 2011 capex will come from proceeds of a recent stock rights offering, which raised around P3 billion for the company. Lepanto offered a total of 10.05 billion common shares to its stockholders at a ratio of one new common share for every 3.3 common shares at 30 centavos apiece.

Lepanto has also set aside parts of the proceeds from the rights issue to for the settlement of a substantial portion of its debts, which is expected to result in a reduction in interest expenses. The company resumed copper operations in 2008, which it suspended in the fourth quarter of the same year due to sharp decline in prices of copper.

Lepanto also has 60 percent interest on Far Southeast Gold Resources Inc., another mining company with resources in Mankayan, Benguet. Last month, Lepanto gave South Africa-based Gold Fields Switzerland Holdings AG (GFS) an 18-month option to acquire one-third of its stake in Far Southeast. GFS is a wholly-owned subsidiary of Gold Fields Lt.

GFS plans to acquire a total of 60 percent interest in Far Southeast from major shareholders Lepanto and Liberty Express for $340 million. The option given to GFS requires the company to solely fund the pre-development expenses, including the exploration and a feasibility study, of the project and contribute $110 million into Far Southeast Gold.

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AirAsia Inc. sets hub of Philippine operations in Clark

Roy — Fri, 25 Mar 2011 11:29:40 +0000

Clark airport in Angeles City Pampanga beats Subic International Airport in Subic, Zambales in bidding for the right to host the hub operation of AirAsia Inc. in the Philippines. AirAsia, Inc., an affiliate of Malaysia’s AirAsia Group, picked Clark as the base of its operation in the country. It will have its office at the Diosdado Macapagal International Airport when it starts operating international flights from the airport in the fourth quarter of 2011.

AirAsia Berhad chairman Tony Fernandez said that their choice of Clark is in line with the airline company’s commitment to developing transportation and tourism hubs outside Manila. Chief executive officer Marianne B. Hontiveros of AirAsia Inc. said, “This is part of our plan to contribute to the development of the country as whole.” She added, “AirAsia Inc. is excited to start contributing to the economy of Clark and the rest of the country by boosting tourism and offering job opportunities to Filipinos.”

The Clark airport is located north of Manila and is accessible to 23 million people from the National Capital Region, Central and Northern Luzon. Incidentally, it is also where the airline’s sister company, AirAsia Berhad has been flying to and from Kuala Lumpur and Kota Kinabalu since 2005.

Hontiveros said, “We plan to make Clark the hub for flights to popular destination including Singapore, Hong Kong, Taiwan, China, Thailand, Korea and Japan,” adding that it would make travelling much easier and more affordable for tourists and overseas Filipino workers.

AirAsia Inc. is owned by Hontiveros, Antonio O. Cojuangco Jr. and Michael L. Romero who has total shares of 60 percent, while the 40 percent is owned by AirAsia Berhad. AirAsia Inc. in Clark will become the 13th hub of the AirAsia Group in the region.

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Trans-Asia signed supplier deal with SEM-Calaca Power plant

Roy — Thu, 24 Mar 2011 06:27:48 +0000

Trans-Asia Oil and Energy Development Corp., a publicly listed firm, recently signed a contract with SEM-Calaca Power Corp. for the purchase of Trans-Asia of power generated from the Consunji-led Calaca Power Corp. Trans-Asia, in its disclosure submitted to the Philippine Stock Exchange (PSE) said it signed on Wednesday the contract “to purchase generated energy,” which will be valid for three years.

Trans-Asia President Francisco L. Viray said the company was buying the generated output as a retail electricity supplier (RES). He did not indicate though, how much of the plant’s output The company would buy from SEM-Calaca. Earlier, Trans-Asia was awarded a RES license by the Energy Regulatory Commission (ERC)

ERC chairperson Zenaida Ducut said that a RES license holder like Trans-Asia will be able to actively participate in the electricity market once open access and retail competition are put in place. Under an open access environment, large power users will have the option to choose their own power suppliers. Under the status quo, power users, whether big or small, are limited to the suppliers with jurisdiction over their areas.

SEM-Calaca Corpopration, is company formed by DMCI Holdings and Semirara Mining Corporation to Handle the Calaca coal facility, which was previously owned by the government through National Power Corp. The investment of SEM-Calaca in the Batangas coal facility was earlier estimated at $483.6 million which includes the acquisition cost of $361.7 million. The remaining $121.89 million will go to the rehabilitation and working capital requirement of the said power plant.

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Sta. Ana racetrack to get a make-over

Roy — Sat, 26 Feb 2011 14:50:49 +0000

The Sta. Ana Racetrack in Barangay Carmona, Makati is about to get a facelift, as its operator Philippine Racing Club, Inc. (PRCI) and property giant Ayala Land Inc. (ALI) recently signed a joint-venture agreement that would the 21-hectare racetrack into a mixed-use complex. The deal was stated by both companies in their separate disclosure to the Philippine Stock Exchange.

The joint venture was said to entail “big figures” in investments as it would be a large-scale project that will turn the former horse racetrack into a township development with recreational, entertainment, commercial, retail, office, residential and even hotel facilities.

PRCI will be bringing into the joint venture its entire 21-hectar property, the former site of its horse-racing operations until 2008. The company will then be sharing in the revenue to be generated by venture, which will come from sales of residential units as well as from leasing out of office and commercial spaces.

The PRCI board has already approved the execution and delivery of the master development agreement with ALI and Alveo Land Corp., which will be presented for approval of its shareholders in their on April 26. PRCI president Solomon Cua said that their land is the last big piece of property in Makati and they have chosen the right partner for its redevelopment.

For its party, property firm ALI said in its disclosure to PSE that the deal is still subject to the fulfillment of certain closing conditions. “The project is intended as a mixed-use development and will form part of the company’s ongoing developments in the city of Makati,” the ALI disclosure stated.

ALI is the main developer of the Makati central business district and Fort Bonifacio Global City. The company also teamed up with Manila Jockey Club to gain access to a part of the latter’s former San Lazaro racetrack area in Sta. Cruz, Manila, six years ago.

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Sitel offers more job for Filipinos

Roy — Fri, 05 Nov 2010 16:19:47 +0000

Because of securing a contract with new clients, and with their existing clients also expanding the services that they outsourced to them, business process outsourcing firm (BPO) Sitel will hiring 4,000 more new employees for its Manila and Baguio Sites.

Sitel recruitment director Joan Laquindanum said they have opened as many as 4,000 positions in one go, to support the new and existing clients’ requirements.

And because of the demand for BPO employees very high, thanks to the continuing development and growth of the outsourcing business in the Philippines, Sitel provided “attractive compensation and benefits packages” to its employees. Among those perks is their in-house pharmacies where employees can order medicine and supplements on a non-cash basis.

Laquindanum said that their employees are enjoying generous leave entitlements, as well as health, life, bereavement and retirement insurance plans. “Our bereavement benefits are extended to all family members of associates, considered the first in the industry. As we continue to grow, giving only the best to our associates is a welcome challenge for Sitel,” she added.

The hiring officer also said that the 4,000 hiring requirement is just the start, and it would be followed by even more job openings in the future as they also planned to expand its operation the Philippines further.

At present, Sitel has 11 sites in the country which provide services such as acquisition and sales, back office, collections, customer care and technical support. The company’s Philippine site serve customers in North America, the United Kingdom, Australia and New Zealand. They support English, Mandarin, Cantonese and Spanish languages.

The Business Processing Association of the Philippines (BPAP) said the outsourcing business could be a $20-billion industry by 2016 with continued concerted industry effort and strong government support. The organization said that in its “IT-BPO Road Map 2011-2016: Driving Global Leadership,” adding that by 2016, the industry could be employing as much as 900,000 call center workers.

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Pacifica bids for Subic and Malaya power plant

Roy — Sun, 16 May 2010 19:21:46 +0000

A listed firm expressed interest to bid for the 116 megawatt Subic diesel-fired power plant project, the sole generating facility at the Subic free port.

In its disclosure to the Philippine Stock Exchange (PSE), Pacifica Inc. which is controlled by port operator Michael Romero said its board has approved the plan to “bid or submit a proposal for the lease, operation and maintenance of the Subic diesel power plant project.”

The board also approved a plan to enter into a consortium agreement with R-II Builders inc. “for purposes of the bidding or submission of the pre-qualification requirements and proposal for the SDPP.”

The power plant is currently being operated by the Subic Bay Metropolitan Authority (SBMA), which was commissioned in 1994 through a build-operate-transfer agreement between state-owned National Power Corporation (Napocor) and Enron Corporation. It was turned over by Napocor to SBMA in March of last year.

The SBMA said in its invitation to bid, “SBMA wishes to lease out on an ‘as is, where is basis,’ the land and the facilities within the Subic Bay Power Plant compound by inviting interested proponents to pre-qualify for the project.” It did not, however, state when the bidding will take place but said those who are interested should submit within the month.

Aside from the Subic power plant, Pacifica also intended to acquire control of the administration of the 650 megawatts of the Malaya thermal power plant. It has already submitted a letter of interest to the Power Assets and Liabilities Management (PSALM) Corp., the government’s privatization arm for the power sector.

Pacifica said its participation in the bid for the Malaya thermal power plant is another significant decision in line with its purpose to “expand business opportunities in power related business.”

Romero, for his part, said the company is joining the Malaya bidding “because of logistical solution Harbour Center could provide.”

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Metro Pacific finally bags SCTEx contract

Roy — Fri, 07 May 2010 12:51:05 +0000

The Metro Pacific Group is confident that it has won the bidding for the concession to operate the country’s longest expressway, the Subic-Clark-Tarlac Expressway (SCTEx). Metro Pacific Tollways Corp. (MPTC) believed it virtually clinched the hotly contested concession after it has submitted an “improved” bid package to the government. “We have submitted a final improved offer for the concession. We understand that they have accepted,” said MPTC president Ramoncito Fernandez.

MPTC’s unit, Manila North Tollways Corp. (MNTC) was declared early this year by the state-owned Based Conversion Development Authority (BCDA) as the only bidder who was eligible for the government contract to manage and maintain operations of SCTEx. Only to be announced later that MNTC’s original offer fell short of the financial requirements under the bid terms of reference.

But Fernandez is confident that with their improved offer, they have given the government a very, very good offer. He did not disclose though the highlights of their amended offer, saying that they could not be discussed in public yet. He stressed that the improved package would be sufficient to meet the BCDA’s debt financing needs for the tollway. He said the final package would very much cover the BCDA’s funding concerns.

In as much as they are very much optimistic for the acceptance of their final offer, the BCDS has to issue an official notice of award on the SCTEx contract. MPTC, however, is confident enough and Fernandez said they are just waiting for it.

MPTC is owned by the Metro Pacific Investments Corp., an infrastructure holding firm of Hong Kong based First Pacific Co. Ltd. which is led by business leader Manuel V. Pangilinan.

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O2P will be acquired by TeamAsia

Roy — Sun, 02 May 2010 03:26:11 +0000

Outsource2Philippines (O2P), a firm that provides advisory services to the business process outsourcing (BPO) industry was reported to be acquired by TeamAsia, an award-winning strategic marketing communications firm which is based in the Philippines.

TeamAsia managing director Michael Alan Hamlin said on their acquisition, “We’ve identified a number of exciting opportunities for O2P that we will describe more fully in the coming months.” And he continued, “The outsourcing industry is evolving rapidly, and as it does the kinds of support services it requires are likewise changing. The industry is learning to outsource business processes that are not within its core process expertise. That’s where we see tremendous opportunity for O2P.”

Frank Holz, a veteran in the outsourcing industry with his many years as a partner of Andersen Consulting (now known as Accenture), founded Outsource2Philippines in 2004. With the acquisition of TeamAsia, he will remain with O2_ as a consultant. With expertise and experience, he will be assisting BPO companies as they deal with issues associated with rapid growth.

O2P collaborated with the Business Processing Association of the Philippines (BPA/P) to conduct quarterly surveys of the BPO industry which resulted in highly-reputed periodic CEO briefings. Hamlin said that they will continue working with BPA/P to assess industry sentiments and provide a forum for regularly discussing industry developments. “Feedback from the industry as well as high level of participation in these activities indicates that industry executives appreciate the insights the CEO briefings provide,” he said.

The company also worked with the Philippine Software Industry Association (PSA) to develop an industry roadmap (“Fly High 2010”).

Meanwhile, BPA/P Executive Director for Research Gillian Joyce G. Virata commented, “We value the relationship with O2P and look forward to continuing our collaboration. Of course, we also work closely with TeamAsia on a number of key initiatives – such as the International Outsourcing Summit – and they have also sponsored and produced our quarterly briefings. We anticipate a seamless transition.”

The acquisition is expected to be complete in 30 to 60 days, said Hamlin of TeamAsia.

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SM Group bought Lucio Tan property

Roy — Sat, 01 May 2010 08:47:19 +0000

The North Belton Communities, a mixed-use township development in Quezon City owned by Lucio Tan’s group, was bought tycoon Henry Sy’s SM Prime Holding, Inc. A memorandum of agreement was recently signed between the Lucio Tan-led Eton Properties Philippines, Inc., Philippine National Bank (PNB) and SM Prime.

The signed MOA involves the sale of a portion of the group’s 13.8-hectare North Belton project. SM Prime bought the property with the intention of constructing a commercial/shopping complex in two years time.

Danilo Ignacio, Eton president said, “Our partnership with SM in North Belton Communities is all part of the master plan to give the best value to our homebuyers. The presence of a mail within the project brings in convenience and adds value to the community and its neighborhood.”

Eton is the main developer of the North Belton Communities through a joint venture agreement with PNB who is the landowner. North Belton is Eton’s first attempt to cater to the middle income segment, marketed under the Belton Communities brand. The project is home to three exclusive residential enclaves: The Manors, West Wing Residences and West Wing Villas that will eventually be home to 1,600 families.

The project is the Eton’s second tie-up with the SM Group. They had their first partnership in 2009 when Eton and SM’s Super Shopping Market Inc. signed an agreement covering Eton’s two-level commercial center, Centris Station, in Quezon City, in which the SM Hypermarket is the anchor tenant.

Aside from its partnership with SM, Eton also signed a memorandum of understanding with Amaia Land Corp. The MOU with the Ayala Group’s subsidiary provides for the development a four-hectare property in Calamba, Laguna, owned by affiliate companies of the Lucio Tan group, with Eton as the development manager, representing the landowners.

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San Miguel to exercise its option to take over Petron

Roy — Tue, 27 Apr 2010 08:50:01 +0000

Philippine top company and business conglomerate San Miguel Corporation now plans to acquire a significant stake in Petron Corp. The announcement of interest in the oil refiner immediately sent Petron’s share to its highest since November 2007.

San Miguel has an option to acquire 40% of the Sea Refinery Corp., a firm which owns about 50.1% stake in Petron. The company said its executive committee has authorized plans to exercise the said option.

The Sea Refinery Corp., a unit of British investment firm Ashmore Group, currently owns 90.6% of Petron after buying the Philippine government’s 40% interest for around $544 million at the latter part of 2008.

Aside from its plan of acquiring Sea Refinery, San Miguel also plans to start a tender offer for Petron shares held by the public at an offer price of P6.85 ($0.15) per share. The company’s free float is just a little under 10%, according to Thomson Reuter’s data. Based on that offer price, Petron would be valued at P64.2 billion or $1.5 billion.

Because San Miguel’s offer price was higher than Petron’s current market price, it encourages heavy buying into the stock resulting into Petron gaining as much as 11.7% in early trade on Monday to hit P6.7 per share. It has climbed 13.2% this year so far, outpacing the 6.3$ gain in the main index.

PJ Garcia, chief investment officer at ING Investment Management Philippines aid, “The deal removes the ownership overhang on Petron. For San Miguel, it should be earnings accretive because Petron earns close to P5 billion in annual profits.”

The acquisition is all part of San Miguel diversification and expansion program as it veers away from its traditional food and drinks business. So far it has invested in power, mining, telecommunication, infrastructure and oil refining to fuel faster profit growth.

Last year, San Miguel pad the Ashmore Group $10 million to acquire an exclusive option to buy into Sea Refinery in a deal which allows it to exercise the share purchase option in two years from December 24, 2008.

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PNB ties up with Bank of China on remittances

Roy — Thu, 08 Apr 2010 14:49:26 +0000

The Philippine National Bank (PNB) signed up an agreement with the Bank of China (BOC) in handling remittances of Italy-based Chinese nationals to their homeland. The Lucio Tan-led PNB’s agreement with the state-owned BOC expands the market coverage of unit PNB Italy SpA which was established to facilitate remittances of thousands of Filipinos in Italy.

PNB said that with about 745,000 Chinese overseas contract workers in Italy at present, it is indeed a significant market. According to World Bank data, remittances to China in 2008 reached $34 billion.

In their agreement, PNB will be accepting remittances of Chinese nationals and transfer the money to a BOC account, through the latter’s Manila office, or other bank accounts of the remitters’ beneficiaries. “This will be done through PNB’s electronic International Remittance System, which assures fast and cost-effective deployment of funds,” the bank said.

One of the major remittance service providers in the Philippines, and the country’s seventh-largest bank in terms of assets, PNB said it was looking to establish more strategic partnership to expand non-Filipino remittance business, particularly in Europe.

PNB’s remittance to the Philippines in 2008 reached about $2.6 billion, which accounts for 16 percent of total cash transfers handled by local banks. It ranked No. 3 in terms of remittance volume, where it competes with Banco de Oro Unibank and Bank of the Philippine Islands (BPI).

Among local banks, PNB claims to have the widest international footprint among local banks, with network comprising 110 branches, offices and subsidiaries spread across the Asia-Pacific region, North America, Europe and the Middle East.

Meanwhile, from a record volume of $17.3 billion on remittances last year, the Bangko Sentral ng Pilipinas has projected an increase of 6 percent in remittances to be coursed through banks this year.

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San Miguel mulls investing in the redevelopment of DMIA

Roy — Sat, 27 Mar 2010 15:49:52 +0000

If food and beverage giant San Miguel Corporation (SMC), would have its way, it will redevelop the Diosdado Macapagal International Airport (DMIA), as it being geared to become the country’s premier international gateway.

San Miguel, in its disclosure to the Philippine Stock Exchange (PSE), that it is evaluating the viability of investing in the redevelopment of the DMIA Terminal 2 at Clark Free Port in Angeles City, Pampanga.

The corporate giant mulls on the investment plan when the Clark International Airport Corp. (CIAC) announced its opening of its doors for new investors to redevelop and upgrade the facilities in DMIA. The Philippine government hopes to turn DMIA into a major gateway by 2013, replacing Ninoy Aquino International Airport.

CIAC has the mandate to develop, operate, manage and maintain the Clark Civil Aviation Complex, which is located within Clark Freeport Zone in Pampanga. It is used to be the biggest American military base outside the United States, and covers an area measuring 2,367 hectares. It has a 3,200-meter runway and associated taxiways, passenger terminal building and related facilities.

CIAC earlier received an offer from the Kuwaiti-led consortium Almal-Pride to redevelop DMIA. However, it was rejected by the CIAC board, which opens up the project to new proponents… such as the San Miguel Corporation.

Aside from the planned investment in the airline terminal, SMC said it commissioned a group of experts to prepare an in-depth study on the construction and operation of bullet train facilities which would cover the Laoag-Manila-Bicol route.

The company is also close to sealing the deal to acquire a majority stake in the modernization of Caticlan airport, which is the gateway to Boracay Island, just off Panay. SMC is coming in as a strategic partner of the group of Chinese-Filipino businessman George Yang, who bagged the right to modernize Caticlan airport under a 25-year concession arrangement with the government.