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JG Summit to sell PLDT shares

Roy — Sun, 15 May 2011 12:15:30 +0000

JG Summit announced last Friday its intention to sell its stake in telecommunications giant Philippine Long Distance Telephone Co. (PLDT) to NTT DoCoMo of Japan. The Gokongwei-led company said it will be selling to NTT DoCoMo the 2.8-percent stake it will receive from PLDT as part of the telecom giant’s deal with the Digital Telecommunication Philippines Inc. (Digitel).

NTT DoCoMo was given the option to purchase the 4.56 million shares of JG Summit in PLDT for P2,500 per share, for a total amount of about P11.4 billion (approximately $263 million), although the deal is still subject to the closing conditions.

The PLDT shares will be issued to JG Summit as part of the P69.2-billion PLDT-Digitel deal that will allow the telecom giant to have a controlling stake in Digitel, the company that also operates the Sun Cellular network. In the said agreement, JG Summit will receive a 12.8-percent stake in PLDT’s enlarged capital.

From the 12.8-percent stake, 2.8 percent will be sold to NTT DoCoMo, leaving JG Summit with 10 percent in PLDT, which still entitle them to single seat in the board. In its disclosure to the PLDT, JG Summit said the transaction gives considerable value to JGS shareholder, yet still having enough participation in PLDT.

NTT DoCoMo, part owner of PLDT, is a leading telecom company in Japan. Under their agreement with JG Summit, it will have the option to purchase the PLDT shares within 30 days from the day they are listed in the Philippine Stock Exchange (PSE) board. The acquisition of the JG Summit’s share is part of the NTT group’s plan to maintain its cumulative stake in PLDT.

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DOH wants medicine, support accessible to poor women with breast cancer

Roy — Thu, 12 May 2011 14:46:32 +0000

The Department of Health (DOH) and the Philippine Cancer Society (PCS) joined hands to launch a program that will allow poor women diagnosed with early stage of breast cancer to have access to medicines and other forms of support. The program hopes to increase the survival rates of breast cancer victims in the Philippines.

Department of Health Secretary Ona said that an awareness campaign should be made to make women realize that breast cancer is a curable disease when detected, treated and managed early. “Cancer is a costly disease, with the cost of medicines and treatment way out of reach for our many countrymen,” he said.

Ona added, “Women must have regular breast examination and never hesitate to go on a medical check-up especially those with lump in the breast before it is too late.”

The health secretary called on women with early stage of breast cancer to enroll in any of the four participating hospitals in Metro Manila. These are: East Avenue Medical Center (EAMC), Jose Reyes Memorial Medical Center (JRMC), Philippine General Hospital (PGH), and Rizal Medical Center (RMC).

Ona explained further that through a patient navigation scheme, targeted indigent Filipino women should be provided free medicine entitlement and other forms of support. The DOH and PCS partnership will provide P50 million for a year covering 800 patients and will target an initial 1,000 breast cancer patients. He also said that the there was an estimated 12,262 new cases of breast cancer in 2010 and 4,371 died of the said ailment.

The Philippines is among the countries with high incidence of breast cancer cases. Survival rate for breast cancer in the Philippines is below 40 percent compared to the high survival rates of 80 to 98 percent in developed countries.

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SMC to complete construction of MRT 7 by 2014

Roy — Fri, 06 May 2011 05:24:12 +0000

The San Miguel Corp. projected that by 2014, it will be finished with its construction of the Metro Rail Transit (MRT) 7 line, and by 2015, the new highway to La Union. San Miguel said in its disclosure to the Philippine Stocks Exchanges (PSE) that before the year ends, it would start work on the MRT 7 line which involves the construction of a 22-kilometer train line and the six-lane road beneath it.

The MRT 7 line will have 14 train stations from San Jose Del Monte in Bulacan to the corner of North Avenue and EDSA in Quezon City. It will be linked with the MRT 3 train line and the Light Rail Transit (LRT) line 1 via a common station in North Avenue.

The project is estimated to cost $1.5 billion, 25 percent of which will be funded by company’s equity and the rest through loans. San Miguel expects to shell out around $190 million for the said project.

The MRT 7 line is one of the several rail extension projects for the existing metro rail systems which services Metro Manila. San Miguel acquired a 51-percent equity interest in Universal LRT, which holds the concession for MRT 7. The conglomerate will have 25 year to operate the train line.

As for the Tarlac-Pangasinan-La Union Expressway (TPLEx) project which will stretch from Tarlac to Carmen, Pangasinan, San Miguel said the first phase of construction was scheduled for completion by August 2012. Revenue collection through toll will start immediately after the first phase is opened, “while the remainder of the expressway is projected to be completed by August 2014.”

The estimated project cost for the development of TPLEx is P821.6 billion, which will be funded by a combination of debt, equity, and Philippine government subsidy. The subsidy from the government will be available at the start of construction of Stage 3 of TPLEx which is the section from Urdaneta to Rosario, Pangasinan.

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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.

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Roach predicts Pacquiao by KO

Roy — Sun, 01 May 2011 21:50:56 +0000

Trainer Freddie Roach declared that his prized fighter Manny “Pacman” Pacquiao could very well be the first boxer to knockout former five-time world champ “Sugar” Shane Mosley on their May 7 fight at the MGM Grand Arena in Las Vegas.

Roach said that Pacquiao is in tip-top shape and said he is 100 percent ready for the fight. He said Mosley’s attacking game is perfect for Pacquiao’s aggressive style. He confidently predicted that his ward would win by a knockout. “I think all fights should end in knockouts so I’m looking for a knockout,” said Roach.

However, Pacquiao downplayed the knockout angle saying that at 39 Mosley “is still very strong and moves like he’s 30 years old.” “We’re not focused for the knockout. All we do is work hard and if the knockout comes, it comes. We’ve prepared ourselves for fighting 12 rounds,” he said.

The undisputed pound-for-pound king added, “If the knockouts come, they come. What matters is the fight that we can give to the people and the fans. I want them to be happy and excited about our performance.”

Pacquiao considers his May 7 World Boxing Organization (WBO) welterweight title defense bigger than his most recent fights against Margarito because Mosley “moves fast and he has good speed and power.” Quickly adding, “That’s what I want. He throws a lot of punches. It will be good for us and it will be a good fight.”

Mosley, who has been tagged as the underdog in their upcoming match said it only motivates him even more “to shock the world” and beat Pacquiao decisively. He believes he can hurt Pacquiao with some well-timed power shots when they trade blows in the middle of the ring.

“If Margarito, who is slow, could hit him with so many shots, think how much more I could hit him. Styles make fights, and I think I have what it takes to beat Pacquiao.” Mosley said. He predicts he would stop Pacquiao “by the seventh round.”

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DOH says dengue cases may reach 20,000

Roy — Sun, 01 May 2011 06:15:14 +0000

The Department of Health (DOH) reported that the number of dengue cases in the country is almost reaching the 20,000 mark. The report reflected in the National Epidemiology Center (NEC) shows that from January 1 to April 12, the figure reached 17,228 for individuals who have contacted dengue. Said figure is 0.33 percent than the 17,172 cases recorded during the same period in 2010.

Dr. Lyndon Lee Suy, DOH program manager for Emerging and Re-emerging Diseases, however said that the number of dengue cases by week in on the decline. “If you look at the figure, it’s going down. That can be expected because it is summer. But the total figure in general is high.”

Lee Suy said the labor department expects that the public may take advantage of the summer time to prepare for expected further increase in dengue cases during the rainy days. He said the public should start getting rid of used tires, empty cans and bottle caps that can hold water, which can become breeding sites of dengue-causing mosquitoes.

The record for this year’s death toll from dengue stands at 12 thus far. For 2010, the total casualties were 36. The highest number of dengue cases this year was from Metro Manila, with a notable increase of 124.93 percent, as it doubles last year’s figure.

Quezon City posted the highest most number of cases, among the cities within Metro Manila, with 815, followed by Manila with 635 and Caloocan City with 584. The most number of deaths from dengue was registered in Valenzuela City with eight, marking the highest in terms of death count in the region.

The highest percentage of increase was posted by Muntinlupa at 745.45 percent, with 93 cases compared to 11 in previous year. Taguig follows with 409.09 percent increase. Central Luzon and Calabarzon posted 3,250 and 3,016 cases respectively.

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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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China auto company to open manufacturing facility in the Philippines

Roy — Mon, 25 Apr 2011 10:22:44 +0000

Chery Automobile Ltd. announced it will build a manufacturing facility in the Philippines which will be the company’s left hand drive manufacturing hub in the Southeast Asia. Chery Philippines sales marketing manager Raymond Tribdino said the manufacturing facility will be constructed in the next three years. He said, aside from serving the local market, the company also plans to sell Philippine made vehicles to the ASEAN market. They plan to build Philippine specific models for both passenger cars and small vehicles.

“We will have a local partner. We will subcontract. We are in the trial phase and we are working out the shares in the company. We are not sure how much the total investment will be, but normally, one line costs more than $10 million,” Tribdino explained.

He also added that they would like to bring in cheaper electric vehicles to the Philippines and ASEAN market, “For electric cars, we would like to introduce the first commercially available electric vehicle.” Tribdino said the lithium ion battery is 60 percent of the price. The Chery full electric vehicle is estimated to be at P1.8 million but it could be more. For a single charge, it can run up to 250 kilometers.

Chery Philippines is asking the government to grant them incentives like a parking lot with charging station, lower registration rate and zero percent import duty from China. The current import duty is 30 percent. If the said tariff is removed or is the same as AFTA at one percent, Tribdino said the small e-vehicle will be cheaper at P1.057 million. Although the vehicle is over P1 million, he said the running cost is low with the high cost of fuels.

Tribdino also said they are looking to beef up their local sales as Chery China took over from old distributors Easy Way Motors. The company bought Easy Way’s assets worth P150 million. He said they are looking at matching their 2010 sales target last year which was 1068 units. Their 2010 sales stood at 1,134 units.

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Pancake House posted P73.66 M net income for 2010

Roy — Sun, 24 Apr 2011 10:41:35 +0000

Pancake House Inc. reported a net income of P73.66 million for 2010, a figure which more than doubled the P35.56 million it posted in 2009. The Lorenzo-owned casual dining restaurant chain attributed the growth to its outlet consolidation and realignment of resources to profit-generating activities.

The company also owns and operates various other restaurant brands, aside from its flagship store Pancake House. These are Dencio’s Kabisera, Teriyaki Boy, Singkit Sizzlin’ Pepper Steak and Le Coeur De France.

Pancake House, in its financial report submitted to the Securities Exchange Commission (SEC), said consolidated revenues slightly went up to P1.84 billion from P1.82 billion due to the increased company-owned restaurant sales. Total system-wide sale of the group amounted to P2.3 billion, which translated to a compounded annual growth rate of 3.2 percent over a three-year period.

However, the company commissary sales fell 5.8 percent to P311 million due to several closure of franchised outlets awaiting relocations. On the other hand, its franchise revenues amounted to P87 million in 2010 compared to P86 million in 2009.

Pancake House management said it was successful in the implementation of its plans and programs such as expanded synergies among the seven brands, strategic purchasing and resource optimization despite the increasing cost of raw materials and supplies, rental and utility rates.

The company’s operating expenses for 2010 rose 6.7 percent to P624 million which it said were due to the rising trend of occupancy costs such as utilities, rent and electricity, among other. The consolidated EBITDA, however, remained strong at P720 million with a sustainable margin of 16.6 percent. This is due to the company’s efforts in mitigating the continuous increase in costs and intensifying its targeted marketing and promotional campaigns.

The group said it would continue to consolidate some outlets or relocate them in more strategic, high-traffic areas such as restaurants in hospitals, international terminals and business centers. As of end-December 2010, it had a total of 171 stores across the country.

Pancake House Inc. reported a net income of P73.66 million for 2010,

a figure which more than doubled the P35.56 million it posted in

2009. The Lorenzo-owned casual dining restaurant chain attributed the

growth to its outlet consolidation and realignment of resources to

profit-generating activities.

The company also owns and operates various other restaurant brands,

aside from its flagship store Pancake House. These are Dencio’s

Kabisera, Teriyaki Boy, Singkit Sizzlin’ Pepper Steak and Le Coeur De

France.

Pancake House, in its financial report submitted to the Securities

Exchange Commission (SEC), said consolidated revenues slightly went

up to P1.84 billion from P1.82 billion due to the increased company-

owned restaurant sales. Total system-wide sale of the group amounted

to P2.3 billion, which translated to a compounded annual growth rate

of 3.2 percent over a three-year period.

However, the company commissary sales fell 5.8 percent to P311

million due to several closure of franchised outlets awaiting

relocations. On the other hand, its franchise revenues amounted to

P87 million in 2010 compared to P86 million in 2009.

Pancake House management said it was successful in the implementation

of its plans and programs such as expanded synergies among the seven

brands, strategic purchasing and resource optimization despite the

increasing cost of raw materials and supplies, rental and utility

rates.

The company’s operating expenses for 2010 rose 6.7 percent to P624

million which it said were due to the rising trend of occupancy costs

such as utilities, rent and electricity, among other. The

consolidated EBITDA, however, remained strong at P720 million with a

sustainable margin of 16.6 percent. This is due to the company’s

efforts in mitigating the continuous increase in costs and

intensifying its targeted marketing and promotional campaigns.

The group said it would continue to consolidate some outlets or

relocate them in more strategic, high-traffic areas such as

restaurants in hospitals, international terminals and business

centers. As of end-December 2010, it had a total of 171 stores across

the country.

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Isuzu Philippines temporarily shuts down production operations

Roy — Fri, 22 Apr 2011 10:22:00 +0000

Isuzu Philippines Corp. (IPC) temporarily stopped its operation, starting from April 18 and will resume production on May 2. The work stoppage was due to the shortage in parts and components supply which are coming from Japan. The country’s all-commercial vehicle assemble is still optimistic though that it would be able to sustain its 17 percent growth target for the year in spite of what happened to Japan.

IPC executive vice-president Yuki Kato said during the exclusive Isuzu Truck show dubbed “On the Right Truck to a Better Future” held recently at the World Trade Center, the temporary work stoppage will not lead to layoff but the 300 production workers will be asked to take this opportunity to avail of their leave credits.

IPC is the latest among local car firms who have announced a temporary shutdown of operations as an aftermath of the Japan disasters that disrupted the supply chain for the auto sector globally. The others were Ford Group Philippines, Honda Cars Philippines Inc. and Toyota Motor Philippines.

The company official stressed that their work stoppage would only be limited to eight working days, since there’s no work on Maundy Thursday and Good Friday, IPC does not work on weekends and that May 1, being Labor Day, is a holiday.

Kato further explained that they cannot yet go back into full commercial operation even if they resume production on May 2 because Japan has a week-long holiday on the first week of May. “Perhaps, we will have a clearer picture on the second week of May,” he said.

The work stoppage would effectively translate to a 50-percent reduction in production volume of IPC for the month of April because they would be operating only for two weeks for the month. The average production volume of the company is between 900 units to 1,000 units of various IPC commercial vehicles.

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DOLE announced more than 100,000 jobs available on Labor Day job fair

Roy — Wed, 20 Apr 2011 04:37:32 +0000

The job opportunities available on the Labor Day job fair spearheaded by the Department of Labor and Employment (DOLE) have already reached more 100,000 as confirmed by Labor Secretary Rosalinda Baldoz. She said there are around 1,000 companies and recruitment agencies who would be offering both locals and foreign employment opportunities at the different Jobs and Livelihood Fairs on May 1.

“We have already announced the schedule and venues of the regional job and livelihood fairs and our preparation is in full swing,” she added.

The venue for Metro Manila will be Rizal Park and 200 companies and recruiters will be there offering 30,000 jobs. Labor Undersecretary Hans Cacdac said they are expecting around 50,000 applicants on the Rizal Park job fair. The agency is expecting more applicants this year because of the number of overseas Filipino workers (OFWs) who were displaced by the conflicts in Libya and the Middle East.

“As we expect thousands of jobseekers, graduates, and displaced OFWs to (visit) the designated venues across the country…we are continuously exerting all efforts and exhausting all means to provide a vast array of productive and matched job opportunities,” Baldoz said.

The labor secretary is also urging applicants to pre-register for the job fairs by logging on at the www.phil-job.net. She said the Public Employments Services Offices (PESO) will be distributing free Phil-Jobnet digital cards containing the applicant’s curriculum vitae for those who pre-register.

Jobs available in Metro Manila include managers, cashiers, copywriters, data encoders, dining and kitchen personnel, graphic artists, fashion designers, safety engineers, computer technicians, and heavy equipment mechanics and automotive electricians. Information technology (IT) staff and supervisors, as well as call center agents are also in demand.

While in other regions, Baldoz said employment opportunities include jobs in agriculture, fishing, mining, manufacturing, construction, and hotel and restaurant industries.

Bureau of Local Employment Director Maria Criselda Sy said that in 2009, the number of applicants hired on the spot took 10 percent of jobs offered at the livelihood fairs. This was increased to 13 percent in 2010. “So this year, we hope that the trend would continue. Hopefully 15 percent,” Sy said.

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Ayala’s HRMall acquires US BPO firm

Roy — Tue, 19 Apr 2011 14:21:34 +0000

HRMall Inc., a business process outsourcing (BPO) firm backed by the Ayala group, has acquired IQ BackOffice LLC. Based in Los Angeles, California, IQ BackOffice provides backroom finance and accounting services to mid-sized companies in the United State. It delivers high quality, software-enabled and real-time finance and accounting BPO services to US companies.

HRMall is one of the investing companies of the Ayala group’s BPO holding firm LiveIt Investments Ltd. it provides IT-enabled human resource services out of Manila. The firm entered into a definitive agreement to acquire IQ BackOffice. The combined value of the two companies is estimated at $15 million.

IQ BackOffice employs over 200 people in the United States and India. Its clients are US firms with annual revenues of $50 million to $1 billion. Some of its clients generate revenues up to $10 billion. The company has more than 30 public and private company clients, including restaurants, manufactures and distributors, hotels, entertainment establishments, property and financial firms.

As part of the deal between IQ BackOffice and HRMall, founder and chief executive officer David Schnitt of IQ BackOffice will get a 17.5-percent ownership interest in HRMall. Schnitt will be appointed CEO of HRMall.

The 82.5-percent interest of HRMall will be owned by LiveIt which has vowed to support a strategy to fast-track growth in existing markets in the United States and Asia. With the said, HRMall will be in a better position to help enterprises slash costs by 30 to 50 percent a year.

All stockholders of both firms, HRMall and IQ BackOffice, have already approved and signed the sale and purchase documents. The transaction though is subject to customary closing conditions and is expected to be sealed by April 30.

As part of the deal, the company will operate as HRMall in Asia and IQ BackOffice in the United States. It will employ a total of over 300 workers out of centers in Manila, Chennai, Mumbai and Los Angeles.

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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 play in Manila

Roy — Thu, 14 Apr 2011 23:56:32 +0000

The popular football team Azkals will play in the country on July. Team coordinator Patrick Ace Bright confirmed on Thursday that the first qualifying match between Philippine’s Azkals and Sri Lanka for the 2014 FIFA World Cup will be held at the Rizal Memorial Stadium in Manila on July 3.

“This will not be the last time the Azkals will play here in the Philippines. We still have an upcoming match against Kuwait and we look forward to bringing the game here in Panaad (Park and Stadium),” Bright said. The Azkals will play a home and away game where the June 29 match will be in Sri Lanka.

Bright also added that by having the game in Manila, the will be able to transport its logistics to the country easily.

Philippine Football Federation (PFF president Mariano Araneta said that Panaad Stadium was also considered as a probably venue for the match against Sri Lanka. But he explained that PFF also wanted to hold the match here, since the country has not hosted an international match for quite some time. The latest of which was the 1991 Southeast Asian Games held at the Rizal Memorial Stadium where the Philippine Team reached semifinals.

Meanwhile, Philippine Olympic Committee (POC) chairman and PFF Advisory Council member Monico Puentevella said that since the capital of the Philippines is Manila, Manileños should be given the see the Azkals too. “I hope we don’t threaten the games here with the 30 percent amusement tax the next time it will be staged here. The Azkals will surely generate millions with this game in Rizal,” he said.

It could be recalled that last February, the match between the Azkals and Mongolia in Bacolod City, the Bacolod City Council passed a resolution charging the organizers with a 30 percent amusement tax on the ticket sales of the match. Fortunately, the city council waived the tax later upon the request of the PFF.

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Splash reported 500-percent growth in 2010 profit

Roy — Wed, 13 Apr 2011 12:36:54 +0000

Splash Corporation reported its profit up to 500 percent to P144 million in 2010 from P23.74 million in 2009. The leading personal care manufacturer reported to the Philippine Stock Exchange that its big financial figures last year can be attributed to its strong performance across all its business segments – domestic, international and direct selling.

Splash president Eric Domagas said, “We posted higher net income due to efficient use of plant assets, tighter control on expenses, (and) launch of our new products.” He added, “We are confident that the company will continue to post double digit growth this year. We believe in the continued growth of our direct selling and international business segments.” Net sales for 2010 were recorded at P2.99 billion, up by 9.8 percent from 2009’s P2.72 billion.

The company’s capital expenditures in 2010 were registered at P69 million, from a previous P21.3 million in 2009. For 2011, the company’s board approved higher capex amounting to P426 million, most of which will be spent for plant capacity expansion, improvement of facilities and enhancement of information systems for international and direct selling operations.

Splash’s skin whitening captured the growth in product sales in 2010, reaching P1.3 billion, followed by skin exfoliants at P1.04 billion and hair products at P542.3 million. International operations recorded net sales of P407.98 million last year, up by 67.5 percent from P243.58 million in 2009.

The company has also set up subsidiaries and offices in the Middle East, Indonesia and Asean region, which helped it gain a foothold in international sales. Meanwhile, direct selling business recorded a big growth in net sales reaching P40.8 million last year from P3 million in 2009.

Splash direct selling head Glenda Pingol said, “Splash direct sales will be very aggressive in its effort to build its pioneer network for the year 2011.”

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SMC prepares for its foray in the telco industry

Roy — Wed, 13 Apr 2011 01:35:54 +0000

The corporate food and beverage giant San Miguel Corp. (SMC) is seriously mulling entry into the highly competitive field of telecommunication. The company plans to create a holding company for all its telecommunications interest as the conglomerate prepares for its grand entry in this field, according to a top official of the company. SMC president and COO Ramon S. Ang confirms “That is the intention, to create a holding company for our telco business.”

The company have already invested P9 billion so far in the local telecommunications business and plans to put in even more in order to build what it describes as a “next generation” network that will provide the best service and cheapest rate in the country. Ang emphasized that their business model for telecommunications guarantees one that will be better than what the other companies are giving.

SMC, at present, owns 41.5 percent of Liberty Telecom, 100 percent of Bell Telecom and 40 percent of Easter Telecom. Ang assured that they will not be wasting money, time and effort to establish a complete network that will just copy what is being offered in the market right now. “It will be a next generation, long-term evolution, mobile broadband, which is still being planned by others in the industry,” he said.

What is important right now, Ang noted, is to have a level-playing field in the telco industry. “But what I can assure you is that our service will be the best, no dropped calls, and very affordable rates. We will not waste resources if we will not do it right,” he said.

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PNOC-EC prepares for public offering of its stocks

Roy — Sun, 10 Apr 2011 00:58:14 +0000

The PNOC Exploration Corp. is already starting its preparations for a public-offering of its shares after its directors finally gave the go-ahead. However, the board deferred to give its decision on the actual date so as to be able to pinpoint the proper timing and conditions, according to PNOC-EC chair and CEO Gemiliano C. Lopez Jr., to ensure the highest market price for the shares.

Lopez said, “We hope to ensure the best price for the offering so the board has not fixed the actual date for its float. Timing is important. We would like to assure everyone that the best condition will be obtained for the offering so that our company will get the best and highest price possible in the global market.”

PNOC-EC needed to hold a public float of at least 10 percent of its shares of stock, which is required for a publicly listed company. The government, through PNOC, has 99.71-percent stake in PNOC-EC while the public owns only 0.29 percent. Lopez said the preparations of the documents from the start up to the end of the float could take six to eight months.

The company has not appointed any lead underwriter yet. It is still choosing among the eight prospective financial advisers it has been in talks with. It will send out invitations for interested and potential parties in the next couple of days.

It will be the company’s 35th founding anniversary celebration next week and President Aquino will be its guest of honor and principal speaker. During the said celebration, Lopez will officially turn over to the national government the P3 billion in cash dividends earned in 2010. PNOC-EC earned P2.42 billion last year, up 34 percent from the previous year’s P1.8 billion.

This year, the company allocated P5.25 billion for the exploration and development of prospective petroleum and coal resources within its service contracts. Among PNOC-EC’s priority exploration and production projects are the Malampaya gas project in Palawan, the planned power plants in Isabela province and Malangas in Zamboanga Sibugay, and the Lumbong coal project in Zamboanga Sibugay.

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BSP said Banco Filipino ran a ‘Ponzi’ scheme

Roy — Wed, 06 Apr 2011 09:34:49 +0000

The Bangko Sentral ng Pilipinas (BSP) said in its 170-page opposition filed before the Court of Appeals that Banco Filipino Savings and Mortgage Bank was operating using the fraudulent “Ponzi” or pyramiding scheme. BSP filed the said report to justify its closure order and place Banco Filipino under the receivership of the Philippine Deposit Insurance Corp. (PDIC).

In the Ponzi scheme, named after Italian Charles Ponzi who earned notoriety for the technique in the 1920s, a company pays out returns to investors not really from its own profits, but from the investors’ own money, or those paid by subsequent depositors. The BSP said Banco Filipino lured its depositors by offering an interest of 6 to 14 percent for special savings while other banks were only giving 1.8 to 3.3 percent. The BSP alleged that the investments received were used to pay the interest of old deposits and fund its day-to-day operations.

The BSP also said that Banco Filipino owner Albert Aguirre and other directors, officers, and so-called interests of the bank borrowed P2.2 billion of the depositors’ money and never paid them back. It added that the only recourse left was to place under receivership of PDIC to protect the bank’s depositors, creditors, and the public in general.

The central bank also noted that Banco Filipino paid its officers and consultants P250 million, and that P245 million in legal fees were handed out last year to former Securities and Exchange Commission chairperson and Banco Filipino vice chairperson Perfecto Yasay, and lawyer Harry Roque. The BSP said Banco Filipino also violated the caps and limits set.

“Banks are not created for the benefit of its directors or officers. Instead Banco Filipino was being run to the extreme prejudice of its depositors since it was violating various laws and BSP regulations, including its refusal to submit periodic financial statements for the few years to hide its true financial weakness,” the BSP said.