PinoyBusiness.ORG - Home » Finance

Villar remains to be the richest senator

Roy — Thu, 12 May 2011 05:05:43 +0000

Senator Manuel Villar’s statement of assets, liabilities and net worth (SALN) reflects his assets to reach P725,221,964 while maintaining no liabilities. Compared to his filed SALN for the previous year, Villar’s asset were reduced from close to P1 billion to about P725 million in the election year of 2010. Despite the decrease in asset size, however, he remained to be the richest senator.

The senator listed about six residential lots in Las Piñas, Muntinlupa and Cavite, among his properties, totaling P4.58 million, representing acquisition costs. Villar also reported investments in stocks worth P147 million and other real and personal properties totaling P572.8 million.

Villar and his wife, who filed a joint SALN, also listed stakes in M.B. Villar Co. Inc., Fine Properties, Inc., Mooncrest Property, Macys Inc., Hollinger Holdings, which were acquired from 1982 to 2010. Cynthia Villar was a former lawmaker before she was replaced by son Mark as Las Piñas representative in 2010.

Forbes Magazine listed Villar as the largest shareholder in property firms Vista Land and Lifescapes and Pollar Property Holdings in 2009. He was the country’s ninth richest man then, with net worth of $530 million, according to Forbes.

Meanwhile, Senator Antonio Trillanes was the poorest senator in the list, replacing Senator Joker Arroyo. He listed his assets totaling P3.836 million. These included 120-square meter residential lot in General Trias, Cavite; a 308-square meter lot in Antipolo; and a residential condominium in Parañaque worth P3 million. Trillanes also reported P3.880 million as liabilities,

The second richest senator based on filed SALN is Ralph Recto (jointly filed with Batangas Governor Vilma Santos-Recto) who reported assets worth P418.523 million while maintaining P32 million in liabilities. He was followed by Ferdinand Marcos Jr. who has P311.5 million net worth with no liabilities.

Completing the list of the senators between Marcos and Trillanes, based on the size of the assets reflected in their SALN: Ramon Revilla Jr., P125.75 million; Senate President Juan Ponce Enrile, P116.07 million; Senate President Pro-Tempore Jinggoy Estrada, P93.56 million; Sergio Osmeña, P82.3 million; Pia Cayetano, P76.775 million; Teofisto Guingona III, P73.97 million; Edgardo Angara, P70.09 million; Majority Leader Vicente Sotto III, P48.96 million; Loren Legarda, P45.545 million; Juan Miguel Zubiri, P41.3 million; Franklin Drillon, P33.442 million; Panfilo Lacson, P24.729 million; Gregorio Honasan, P19.354 million; Lito Lapid, P18.9 million; Allan Peter Cayetano, P15.94 million; Francis Pangilinan, P12.43 million; Joker Arroyo, P11.05 million; and Francis Escudero, P8.032 million.

Possibly Related Topics to Read

SM to build 200-room hotel in Davao

Roy — Wed, 11 May 2011 07:42:16 +0000

A new 200-room hotel in Davao City will be build by SM Investment Corp. It will be in Lanang district, adjacent to the SM shopping mall.

SM, in its disclosure to the Philippine Stock Exchange, said its wholly owned subsidiary SM Hotels and Convention Corp. signed a contract with Carlson, a privately held global hospitality and travel company, for the very first Park Inn by Radisson in Davao, as well as in the Asia-Pacific region.

The 200-room new hotel will be located inside the 175,000-square meter mixed-use complex owned and developed by SM shopping mall subsidiary, SM Prime Holdings, Inc. Aside from the hotel, the group also plans to construct an SM Supermall and a convenience center within the complex. The construction of the hotel will be started in the third quarter of 2011 and is expected to be operation by 2013.

Elizabeth Sy, SM Hotels and Convention president, said the signing of contract to open a Park Inn by Radisson in Davao City is just another step toward the fulfillment of the vision of her father, tycoon and SMIC founder Henry Sy, to make the Philippines a “world-class tourist destination.”

“We believe that Davao is an ideal location for such an undertaking because of its robust economy, vibrant population, and excellent infrastructure, including its international airport. In addition, the Park Inn Hotel will benefit from the business synergies that will be created with the other upcoming SM projects within the vicinity,” Sy said.

Park Inn by Radisson is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe. Radisson is also managing SMIC’s upscale hotel in Cebu.

Executive vice president and chief development officer at Carlson Hotels, Asia Pacific Xerxes Meher-Homji said, “With the tagline Sleep Well, Live Well, Park Inn by Radisson hotels offers a hassle-free, clean and comfortable stay at a reasonable price.”

Possibly Related Topics to Read

Wage Board increased COLA instead of salary

Roy — Mon, 09 May 2011 16:22:26 +0000

Private employees from Metro Manila will receive and additional P22 in their cost-of-living allowance (COLA) per day, in lieu of a wage increase. The Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) approved Wage Order No. 16 increasing the COLA of employees. This will take effect 15 days after its publication on the daily newspapers on May 10, 2011.

Raymundo Agravante, chairman of RTWPB-NCR, said their main consideration in the decision was the argument presented by the employers during the deliberation. A wage increase will be an added cost on the part of the employers, while in COLA, overtime and other benefits are not affected.

Because while the additional allowance would bring the daily compensation to P426 per day, the basis for the computation of the overtime, night differentials, 13th-month pay, bonuses, retirement, and other benefits will still be the prevailing wage whose minimum rate still remains at P404 per day.

“In the end, the employers’ position was P20 COLA but we still managed to haggle P22 or a P2 additional allowance in anticipation of projected increase in prices of basic commodities,” Agravante said. He added that they also considered the warning of the Bangko Sentral ng Pilipinas (BSP) on the possible inflationary effect of giving more than P25 increase in daily compensation of workers.

Meanwhile, the Trade Union Congress of the Philippines (TUCP) slammed the decision. The TUCP said it was a measly wage increase in the form of COLA and called on Congress to rectify the decision.

Rafael Mapalo, spokesperson of TUCP, said “The RTWPB just missed this important opportunity to raise workers standard of living in NCR and to help improve equity as mandated by law. It further institutionalizes the primacy of profits over people, a few people over the masses of suffering workers. That was a shameless decision.”

Possibly Related Topics to Read

New reimbursement payment scheme to be adopted by Philhealth

Roy — Mon, 09 May 2011 10:27:19 +0000

A new payment system that will replace the present “fee for service” scheme in reimbursing hospitals will be adopted by the Philippine Health Insurance Corp. (Philhealth) and hopes to implement it next month.

The Philhealth plans to adopt a new system called the “case payment” system which will have fixed rates for medical services and surgical procedures to reimburse hospitals for treatment of Philhealth members.

Senior manager of benefits and development and research department of Philhealth Dr. Israel Francis A. Pargas said the case payment system will cover both medical and surgical procedures. He said the board discussion on the new scheme is almost over.

Pargas presented a draft during the recent annual convention of the Philippine College of Physicians (PCP), of the proposed amounts that can be reimbursed by hospitals on specified surgical and medical cases.

Among the fixed rates for service and procedures are: hemodialysis, P4,000; radiotherapy, P3,000; caesarian section, P15,000; Medical Care Plan (MCP), P8,000; appendectomy, P26,000; hysterectomy, P30,000; cholecystectomy, P31,000; dilation and curettage, P11,000; mastectomy, P22,000; herniorrhaphy, P21,000; and thyroidectomy, P31,000. For other diseases, reimbursement for essential hypertension case will be P9,000 and typhoid fever is P14,000.

Pargas said, “The new case rates shall be the new reimbursement for all the specified cases. It will apply to all claims by eligible Philhealth members and dependents admitted in accredited facilities.” He noted that the new scheme will moderate the financial risk to Philhealth and will provide high financial protection to beneficiaries and members and would mean less administrative cost for hospitals and Philhealth because it will not need any itemization.

According to Pargas, under the current reimbursement scheme which is the fee-for-service method, there is a high risk to payors, Philhealth and members and is also incentive for fraud. The present system also results in high administrative cost for hospitals.

Possibly Related Topics to Read

JG Summit earmarked $700 M for its 2011 expansion

Roy — Fri, 06 May 2011 01:00:57 +0000

JG Summit Holdings Inc. is earmarking $700 million for the planned expansion this year. Most of these funds are allocated for its petrochemical and airline businesses.

JG Summit president Lance Gokongwei said the petrochemical business will be the company’s priority in the next three years. JG Summit also has stake in a property developer and may expand into power generation.

With sale of its stake in Digital Telecommunications Philippines Inc. (Digitel) to Philippines Long Distance Telephone Co. (PLDT), the company will also be able to cut its debt by $600 million, giving it “more room” for fund-raising. Also the asset sale is said to be “strategically good for JG Summit because it frees up capital that the company can invest in ventures that potentially will pay a higher return.”

Gokongwei said after the sale of its Digitel stocks to PLDT, “We will be very lightly leveraged. We will have a very good balance sheet.” According to data compiled by Bloomberg, JG Summit has bonds and loans worth P69 billion.

Last December, JG Summit said it may sell 31 percent of its stake in Cebu Air Inc. to fund expansion and pay debt, however, after the Digitel-PLDT deal, the company will have “no immediate” need to sell shares. JG Summit is the majority owner of Cebu Air, the country’s biggest budget carrier.

Gokongwei said JG Summit will invest about $200 million in a naphtha cracker plant worth $700 million that may start operations by 2013, snack and iced-tea maker Universal Robina Corp. may spend $80 million to $90 million, property unit Robinsons Land Corp. will spend as much as $200 million on capital expenditure this year, while Cebu Air will spend around $200 million.

JG Summit also plans to bid for airport projects that the government will be opening to companies for investment, and is mulling to build a power plant for its petrochemical business, said Gokongwei.

Possibly Related Topics to Read

8 companies eyeing the right operate MRT and LRT 1 lines

Roy — Thu, 05 May 2011 05:51:12 +0000

Eight companies are vying for the operations of major Metro Manila train lines. Conglomerate Ayala Corp., San Miguel Corp., and Pangilinan-led infrastructure giant Metro Pacific Investments Corps. are the local groups planning to bid for the P15-billion contract, while five foreign companies have also acquired bid documents worth P500,000 each for the project, according to the Department of Transportation and Communications (DoTC).

The DoTC said that the bidding schedule has been set on July 11. Interested bidders may purchase bid documents until July 11.

The contract being eyed by the bidders involved a five-year operations and maintenance contract for the Metro Rail Transit (MRT) and Light Rail Transit (LRT) line 1. This is the first project under the administration’s public-private partnership (PPP) infrastructure program.

US-based Abratique & Associates, London Stock Exchange-list Serco Group, multinational Jorgman Construction and Development, and Japanese companies Sumitomo and Marubeni completes the list of eight groups bidding for the said license. A total 44 companies, most of which are from abroad, have expressed interest in the project.

But the DoTC kept on trimming down the list by telling companies it deemed not likely to stand a chance to win the contract not to bother joining the bidding. Companies were screened in terms of their financial capability and technical expertise. Companies that were affiliated with other potential bidders were also disqualified from the bidding.

The winner in the bidding process will get the contract to operate and manage both train line for four years with an option extend it for another year.

The DoTC hopes that by bidding out a single contract for the LRT1 and MRT train lines would lead to the integration of the train line. The lack of connectivity between the two lines has been causing inconvenience for the one million passengers that use both train lines every day.

The LRT line 1 runs along Taft Avenue from Baclaran in Pasay City to Roosevelt, Quezon City, while MRT runs from Taft Ave. to North Avenue along EDSA.

Possibly Related Topics to Read

Aquino not keen on new taxes

Roy — Wed, 04 May 2011 12:25:21 +0000

President Benigno “Noynoy” Aquino III is not keen on new taxes just to increase the income of the government, instead he said that existing tax exemptions or incentives should be reviewed. Aquino said that rationalization plan for fiscal incentives is being discussed and stressed that the government would continue on its efforts to increase revenues by improving tax collections.

“At this present time, none of my economic managers are indicating that there is such a need (for new taxes). And again, the priority still is improving the tax collection efficiency,” the president said. He also mentioned of a pending bill aiming to lift certain tax exemptions to address the need for a better system of collection and noted that some of the incentives are “outdated, not realistic,” compared to the others being given by the government.

The president said he already ordered his economic managers to study and review the fiscal rationalization plant of the government as well as tax incentives already given to multi-national companies in order to improve tax collection.

The International Monetary Fund (IMF) urged the Philippine government to broaden its tax base and strengthen tax administration by overhauling its excise tax system on sin products and rationalizing its fiscal incentives to raise much needed revenue to bankroll social and infrastructure spending. The IMF said this is crucial to the Aquino administration’s commitment to trim the budget deficit to two percent of gross domestic product starting 2013 from the current level of 3.3 percent of GDP.

The IMF’s latest Public Information Notice dated March 1 reads: “Achieving the deficit targets and increasing social and infrastructure spending will require substantial revenue efforts, including broadening the tax base and strengthening tax administration.”

The executive board of the IMF recommended early actions to reform excise taxes, rationalize fiscal incentives and address gaps in the value added tax (VAT), complemented by reforms to strengthen the budgetary framework, and control of the civil service wage bill.

Possibly Related Topics to Read

Chinatrust applies for unibank license

Roy — Mon, 02 May 2011 07:30:07 +0000

The Chinatrust Commercial Bank Corp. is seeking to upgrade its current status and authority from a commercial bank to a universal bank. Chinatrust made a request to the Bangko Sentral ng Pilipinas (BSP), asking it to convert its banking license to “unibank” at the end of last year to allow it to implement globalization plans.

With a unibank license, it will be possible for the bank to have a bigger role in onshore capital market through corporate issuances underwriting and the distribution of securities to institutional investors. Aside from having an authority to operate as an investment house, unibanks are also allowed to invest in non-allied enterprises, such as infrastructure projects.

According to the BSP, Chinatrust is planning to have a more active role in debt and equity underwriting. The bank currently operates 24 branches in the Philippines and they plan to use their branch network for the distribution of securities.

A subsidiary of Taipei-based Chinatrust Commercial Bank Ltd., Chinatrust (Philippines) is targeting top-tier clients, such as conglomerates and companies into utilities and power-generation, and some middle-income industries such as the business process outsourcing (BPO) sector.

The request for the banks license upgrade has been forwarded to the Monetary Board for approval as Chinatrust is qualified and meets requirement. The foreign-affiliated bank has a capital base of P5.26 billion, exceeding the minimum capital requirement. The BSP requires all unibank to have a minimum capital of P5 billion and for commercial banks, the minimum capital requirement is at least P2.5 billion.

Established in 1995, Chinatrust is listed in the Philippine Stock Exchange. The BSP, before granting it a unibank license, wants the bank to offer at least 10 percent of the required minimum capital for public offer before December 31 of this year.

Possibly Related Topics to Read

President Aquino’s Labor Day announcements

Roy — Mon, 02 May 2011 00:28:44 +0000

A mix of wage and non-wage benefits for the country’s workforce was announced by President Benigno “Noynoy” Aquino III on Labor Day.

The president said over a million government workers can receive another salary increase in June, or a month earlier than schedule, due to the government’s prudent fiscal management. For the private sector, he gave instructions to the regional wage boards to hasten deliberations on proposed salary adjustments for workers in the private sector within this month.

Aquino also announced a P4.23-billion rice subsidy program and P2-billion in farms implements support for small farmers and fishermen, totaling over P6.23 billion.

He made the announcements during the breakfast dialogue with representatives of public and private labor groups and employers to mark Labor Day at the Palace. During the said breakfast meeting, the president offered a quarterly dialogues with labor groups and employers to find solutions to the concerns of the industry, as well as craft better labor policies.

Aquino stressed that his administration is working hard to address the concerns of the labor sector for higher pay and improved benefits, although he admits that these cannot be solved overnight.

As for the public employees he said, “Government workers will have a salary increase this June, and not July. We advanced the release by a month because I know this will be a big help especially as school enrolment approaches. We won’t postpone this if we can afford to give it today. That’s our promise from the start, and that will remain our policy,” he said in Filipino.

The salary increase for state workers is originally scheduled on July, it the third tranche under the Salary Standardization Law (SSL) 3. Aquino said the early release of the wage increase for government workers was made possible due to government savings.

For the employees in the private sector, Aquino said the wage board in the National Capital Region is expected to make a decision on proposed wage adjustment next week, while other regional wage are expected to issue their decision this month. “We cannot promise that within the month everybody would be finished but we will be pressing them to finish within the month,” he said.

Possibly Related Topics to Read

Transport firm to pioneer electric buses in the Philippines

Roy — Sun, 01 May 2011 14:57:44 +0000

Local transport firm Green Frog Zero Emission Transport Corp. dared to take the huge risk in the electric vehicle industry and expressed interest to buy some 3,000 electric buses in the next seven years, with the initial 38 units coming in from China within the year.

Green Frog director Philip Apostol said the 36-passenger buses will be fielded in Makati City with an P8 fare trip. The first 10 buses arriving midyear will ply the Buendia line while the 28 units will take other routes. The buses will initially ply a route that goes along Buendia from EDSA to the South Luzon Expressway (SLEX). Eventually, they will be available to commuters with the whole of Makati.

“The plan is to implement to project within 90 days after the signing of the MOA (memorandum of agreement) with the Makati LGU. This is a PPP (Public-Private-Partnership) with Makati,” he said. Apostol admits that cost of the e-buses was high, but hopes that the government “would work” with them.

He did not disclosed the cost of the electric buses but said that normally, the bigger electric buses would cost $300,000 (P13.5 million) each. Green Frog’s buses, however, will be smaller and would cost less.

The company is seeking tax perks, among other incentives, and a pioneer status from the Board of Investments, to make the project economically viable.

Negotiations by the company with banks and government financial institutions have been started, seeking for the best financing package. It also seeks some guarantees from the Philippine Export Import Credit Agency (PhilExim) to get lower interest rates.

Apostol said the half of the revenues will be coming from advertising income to help keep fares at reasonable levels during the initial roll-out.

Another Green Frog director, Servillano Batac, said talks were also ongoing between government and financial institutions for the mechanics of a “tap-and-go” system for the electric buses. “The idea is that you will be able to use your MRT (Metro Rail Transit) cards to pay our electric buses, just like in other countries,” he said.

Possibly Related Topics to Read

Aboitiz to invest P25 billion for Mindanao coal-powered facility

Roy — Sun, 01 May 2011 02:56:29 +0000

The Aboitiz Power Corporation offered to invest P25 billion to jumpstart construction of its proposed 300-megawatt coal-fired power facility in Davao, with the said investment coming from its internally-generated cash. “To save time, Aboitiz Power is ready to invest its own fund, amounting to P25 billion instead of seeking financing from other institutions to fast-track construction,” the company said.

The coal-fired power facility being pushed by Aboitiz Power will be equipped with circulating fluidized bed (CFB) coal combustion technology. In the genre of what is being dubbed as “clean coal technology,” it is a more advanced and efficient equipment that extensively minimizes emissions from a coal plant.

Aboitiz Power first vice president for Mindanao affairs Manuel Orig said, “The region needs a steady supply of power to fuel its growth, as industries, investments and businesses expand. Unless the proposed power plant is constructed soon, the energy supply situation in Mindanao will become more precarious, especially as 2011 enters the dry summer season.”

As in all other power projects, the multiplier effect being seen by the project firm will be provision of additional source of livelihood as well as development initiatives for the host community. By the company’s own estimate, Mindanao may suffer from a supply shortage of 480 megawatts by 2014. And considering the lengthy timeline for power projects, construction of facilities must start now to beat the odds of worse brownouts in three years time.

“The demand for electricity for Davao and the rest of Mindanao is growing steadily but the supply, unfortunately, has been lagging behind the needed base-load capacity,” the Aboitiz firm has emphasized.

The Aboitiz arrived at the decision to invest its own funds because Mindanao has been snarled with power outages anew in the past days. Unfortunately, financial closure for power projects generally gobbled up time in the apportioned gestation period of project implementation.

Possibly Related Topics to Read

Trans-Asia stock rights offer approved by PSE

Roy — Sat, 30 Apr 2011 06:19:03 +0000

The Trans-Asia Oil and Energy Development Corp.’s plan to raise fresh fund for power generation via stock rights offer was approved by the Philippine Stock Exchange (PSE).

The Phinma-led company got the nod from PSE when the latter posted a memorandum on Friday saying that its board has approved the listing of 1.16billion additional common shares to be issued by Trans-Asia to cover an equity offering to all shareholders. Each eligible shareholder is entitled to subscribe to seven right shares for every 10 existing shares held as of record date of May 18.

The offer price of P1 per share represents a discount of 21.9 percent on the market price of Trans-Asia as of March 21, which was the date the stock rights offer was approved by the board of Trans-Asia.

The net proceeds from the stock rights offer, based on the memorandum, would be used to partly finance Trans-Asia’s equity investment in the planned 135-megawatt clean coal plant in Calaca, Batangas and its investment in Maibarara geothermal power plant.

Trans-Asia tapped on the services of ATR KimEng Capital Partner Inc. to be the underwriter of the stock rights offering which would run from May 30 to June 3 this year.

The Phinma group, which is composed of Philippine Investments Management Inc. and Phinma Corp., the principal stockholders of Trans-Asia, pledged to subscribe to any shares not taken up by other eligible shareholders.

Trans-Asia was originally into petroleum exploration, and later diversified to other industries like cement manufacturing, coal trading and power generation. This year, the company expects to generate a net profit of P482.23 million, which is a considerable increase from the P14.74 million it posted a year ago. Revenue is projected to rise to P1.7 billion from P894 million in 2010.

Possibly Related Topics to Read

Philippine seeks investment-grade rating

Roy — Fri, 29 Apr 2011 04:51:12 +0000

The Philippine government believes that the country deserves a better credit rating, that is why it is wooing the three major credit rating agencies for an upgrade in its credit scores, amid the improving fiscal situation and external liquidity.

The three credit rating agencies – Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s (S&P), were met separately by finance secretary Cesar Purisima when he went to New York and Washington D.C. recently.

Purisima presented fiscal and monetary data on the Philippines that he believes would encourage them to review and increase the country’s credit scores. Philippines is rated three notches below investment grade by Moody’s and two notches below by Fitch and S&P.

He also said the country has a credit score lower than Indonesia yet the fiscal situations of the two countries are just the same. Purisima also cited the country’s declining debt-to GDP [gross domestic product] ratio and deficit-to-GDP ratio. “Our debt rations and deficit are declining and our financial sector is well managed, and so we deserve better ratings,” he said.

During the meeting with the credit rating firms, Purisima said the three did not give a hint if they would change the country’s credit ratings soon, but he express optimism that the Philippines would finally get an investment-grade credit rating before the end of Aquino’s term.

The finance chief said the country has been able to borrow from the international markets at interest rates comparable to those applied to financing initiatives by investment-grade rated countries. Still, he stressed that getting a credit rating upgrade would be important in getting more foreign investments for the Philippines. “Much more funds will come in to the Philippines if we get investment grade,” Purisima said. He noted that some big-ticket business ventures have been using credit ratings in their decision-making.

Possibly Related Topics to Read

No wage increase announcement on Labor Day

Roy — Thu, 28 Apr 2011 17:37:41 +0000

The much anticipated announcement on Labor Day will not be heard this coming May 1. Secretary Rosalinda Baldoz of the Department of Labor and Employment (DOLE) clarified that there will be no announcement of wage increase on May, despite Malacañang’s pronouncement before that it is coming out with a Labor Day gift to help workers cope with the rising prices.

Baldoz said she has no idea what good news President Aquino was referring to but she was definite there won’t be any increase in salary because the earliest public hearing was set on May 2. She also noted that Aquino had already declared he would leave the decision on salary adjustments to the regional wage boards although he could give instructions to hasten the process.

But she assured workers that the wage boards could grant a salary increase within the month. “I think within the month of May, they should be able to finish the deliberation and come out with their decision,” Baldoz said.

Other officials from the labor department said the president could be referring to a package of non-wage benefits when it made the announcement that good news would be delivered on Labor Day. “The president I think would be announcing non-wage benefits for workers such as discounts and other assistance they would provide to help workers cope with the high cost of commodities,” said a labor official.

The labor department will be having a Jobs and Livelihood Fairs which will take place simultaneously all across the country on Labor Day. There are more than 100,000 jobs available In Metro Manila, which will be held at the Rizal Park, there are 200 companies and recruiters who will be offering 30,000 jobs to new graduates, displaces OFWs and other jobseekers. DOLE is encouraging job applicants to pre-register at the website of PhilJobNet to facilitate processing of application of the Labor Day job fair.

Possibly Related Topics to Read

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.

Possibly Related Topics to Read

Globe to invest $500 M to improve mobile network

Roy — Sun, 24 Apr 2011 06:57:15 +0000

Mobile service provider Globe Telecom is investing $500 million to improve the quality and capacity of its mobile network infrastructure throughout the country. Company officials said the network quality will be top priority of Globe this year.

As part of the company’s network transformation program, Globe is making one of its biggest network investments in quality and capacity to date, where the significant amount will be used for capacity buildup, network modernization and optimization. These upgrades would provide subscribers better experiences in call, text and data services in 2G, 3G and 4G.

Globe earlier announced a major expansion of its current 4G footprint with the country’s first commercial rollout of 4G mobile technology. At its initial phase, Globe utilized the global standard HSPA+ Globe allots or Evolved High-Speed Packet Access for its 4G mobile network.

HSPA+ is a 4G wireless mobile, high speed broadband technology that allows for peak theoretical download of up to 21 Mbps with upgradeability for 84 Mbps which would complement the company’s existing 4G WiMAX (Worldwide Interoperability for Microwave Access) network. Under the Globe HSPA+ network, subscribers are expected to enjoy browsing at a typical speed of 4-6 Mbps with even faster peak speeds.

Globe president and CEO Ernest Cu said, “Our customers are looking for better network quality, and this is what we are giving them. We are making a substantial investment in our network to improve the quality of our services to our subscribers. Certainly, the network on which our services are delivered play a pivotal role in achieving superior customer experience.”

By continuously enhancing their network facilities and operations, Cu explained, their subscribers will enjoy better quality and greater reliability for calls, text messaging and data services. “This year, we are making significant investments in upgrading and expanding our networks. One tangible result of which is the commercial rollout of 4G for mobile, making us the first Philippine operator with a 4G mobile network in the country,” he added.

The 4G HSPA+ rollout expands the foray of Globe into new and up-to-date network technologies to provide its subscribers with high-speed broadband access with the added convenience of full mobility.

Possibly Related Topics to Read

PNOC-EC eyes expansion of coal production

Roy — Fri, 22 Apr 2011 12:35:27 +0000

The Philippine National Oil Company-Exploration Corporation (PNOC-EC) earmarked P900 million for the expansion of its coal mining ventures in Zamboanga Sibugay in Western Mindanao. The state-run oil exploration company said that its board of directors has already approved the special budget “to fund the development of existing coal mine” that will enable it to double its annual production of steaming coal to 500,000 metric tons.

The expansion is in line with company’s mandate to develop more sources of indigenous energy for the country’s needs. PNOC-EC’s coal mine in Zamboanga Sibugay is said to produce the highest grade of coal quality in the country. Developments in the mine are underpinned by the company’s coal operating contracts 41 and 152 as awarded by the Department of Energy.

Aside from its Zamboanga Sibugay mine, the company is likewise engaged in coal exploration and development activities in Isabela and Surigao del Sur via coal operating contracts 122, 141 and 140. PNOC-EC also operates coal terminals in Zamboanga Sibugay, Cebu, Batangas, and North Harbor for its integrated coal trading activities. These locations have been serving as handling facilities for local as well as imported coal which the company supplies to power plants and cement factories.

PNOC-EC is also into oil and gas exploration. It currently holds interest along prospect areas in Cagayan, Ragay Gulf, Offshore Mindoro, Calamian, West Calamian, West Balabac and East Sabina. Its biggest venture in oil and gas development to date is still the Malampaya deep water gas-to-power project. Its Service Contract (SC) 38 for the Malampaya field is only the acreage in the production phase; while the rest are still exploration blocks.

The company is also aligning a budget of $100 million for its next round of investment in the Malampaya project. Given its current financial standing, PNOC-EC noted that it is all set for capital infusion once the project consortium-members comes off for a “cash call.”

Possibly Related Topics to Read

SSS reports payments of benefits for 2010 up by 7%

Roy — Fri, 22 Apr 2011 08:06:03 +0000

The Social Security System (SSS) reported that its benefit payments for 2010 has increased by 7% to P77.17 billion, with the bulk of the payment going to retirement claims and death benefits. SSS president and chief executive officer (CEO) Emilio de Quiros Jr. said in a statement that the state-run agency paid P38.23 million to more than 800,000 retiring members last year while another P27.65 billion went to death benefits of families of about 740,000 members.

De Quiros said, “SSS entitles workers to many types of benefits. Monthly contributions help members save for retirement and give them a safety net during contingencies that disrupt their capacity to earn.” The pension fund provides retirement, sickness, maternity, disability, death and funeral benefits. Membership to pension fund is mandatory for private sector employees and self-employed workers.

The pension fund chief earlier proposed an increase of 0.6% in the contribution rate to 11% and P5,000 increase in the maximum monthly salary credit. De Quiros said that if his proposal is approved, the adjustment would allow the agency to implement a 10% across-the-board pension increase, give pensioners a P500 one-time grant, as well as hike other benefits.

“The average monthly pension is about P3,500 and we want pensions to be nearer the amount of their last salary. Members are being deprived of proper benefits because of limitations in the SSS structure, which we are now trying to adjust gradually,” he said. “The small steps we are taking are also directed toward a perpetual SSS fund life. The proposed reforms would add 7 years to the SSS fund life, extending in from 3029 to 2046,” he added.

De Quiros also noted that the contribute rate being used the pension fund is much lower than that being used by the Government Services Insurance System (GSIS) which is 21%.

Possibly Related Topics to Read

Ayala invests in hydro-electric power

Roy — Fri, 22 Apr 2011 05:33:57 +0000

Another venture that the Ayala group is breaking into is the hydroelectric power generation partnership. The conglomerate, through its wholly owned subsidiary Michigan Power Inc. (MPI) has entered into a joint venture agreement with Sta. Clara Power Corp., an independent power producer specializing in run-of-the-river power plants. Ayala Corp managing director John Eric Francia confirms this as stated in the company’s disclosure to the Philippine Stock Exchange.

MPI and Sta. Clara will be developing a run-of-the-river (ROR) hydroelectric power projects across the Philippines. MPI will take a 70-percent stake in the venture and has committed an initial equity infusion of about P600 million.

A run-of-the river hydroelectric power plant operation involves “borrowing” some river water to turn its kinetic energy into electricity and returning the same unpolluted water back into the river. Francia said, “It is considered as green because it does not produce harmful emissions. Like other renewable power technologies, it is economical as it depends on the free energy of nature as fuel.”

Speaking on the joint venture agreement, president and chief operating officer Fernando Zobel de Ayala said, “This venture builds on our current portfolio of renewable energy assets, which focuses on solar, wind and hydro power technologies. This is an important component of our plan to create a portfolio of power assets over the medium term that blends conventional and sustainable energy sources and contribute to the country’s energy requirements.”

The Ayala group has ventured into power generation as a key platform for future growth especially as demand for electricity is expected to rise in the years ahead. And since the company has yet to build its expertise in the industry, part of its strategy is forging partnership with other institutions.

In the next five years, the conglomerate plans to build a portfolio of power generation assets that will include both renewable and conventional with a capacity of 1,000 megawatts. Francia said that it is all “in line with Ayala’s campaign to augment the country’s power supply primarily through renewable and clean energy.”

Possibly Related Topics to Read

President wants oil firms to open books to public

Roy — Thu, 21 Apr 2011 11:23:46 +0000

President Benigno “Noynoy” Aquino III yesterday said he wants oil companies to open their books to public scrutiny to prove that they were not taking advantage of the public in their series of oil price increases.

“That was my position ever since I have been in public service, isn’t it? If reasonable, why can’t they show it?” the President told reporters in an ambush interview at the Ninoy Aquino International Airport Terminal 3 in Parañaque where he led an inspection of the facility.

The president also asked the Deparment of Energy (DOE) to find way of simplifying the computation of prices for the benefit of the public. “It will show, demonstrate if prices are right or wrong. And again, they repeatedly answer that all sectors are involved in the computation, face to face, nothing is hidden from them as to how pump prices are arrived at,” Aquino said.

He said the secretary would always tell him that every time that they have been demonstrating the formula on how to arrive at prices, they have been very transparent to include even the militant transport group.

DOE’s director for Oil Industry Management Bureau Zenaida Monsada said the recent price hikes were higher than what the energy department’s computation. The DOE sent letters to the oil firms asking them to explain why they have a higher price increase that what official computation should indicate.

Chevron, after receiving the letter from DOE, rolls back it prices of its oil products a day after increasing the same. Petron, for its part, promised to freeze its prices during the Holy Week. “We have no plans of increasing this week,” the company said.

Meanwhile, Unioil Petroleum Philippines Inc. is offering its gasoline products for P50 per liter for a minimum of P1,000 purchases. The company said the promo is in line with its commitment to corporate social responsibility.

Aside from the request to open their books, the government is also planning to issue an executive order that would ban further oil price increases.