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PAL 100% sure of building $6-B int'l airport

Economy

Jul 112013

PAL 100% sure of building $6-B int'l airport

A Philippine Airlines plane at Bohol’s Tagbilaran Airport. HOAGLAND PHOTO MANILA, Philippines – Philippine Airlines (PAL) chef executive Ramon Ang revealed Thursday night that the flag carrier is certain of pushing through with the $6 billion development of an international airport to house its planes. “One hundred percent tuloy ‘yung airport development, timing lang,” Ang said. There were reports that the airlines have shelved the project after PAL failed to present it to President Benigno Aquino III last February. The project would help decongest the already crowded Ninoy Aquino International Airport in Manila. This time, however, Ang is confident that Aquino himself expressed support for the mammoth development but is only hindered by bureaucrats and critics. “Suportado naman ‘yan ng Presidente. Siyempre, may mga little indians diyan na maraming sinasabi kaya ayaw na natin silang kulitin muna,” the tycoon, who also heads food manufacturing firm San Miguel Corporation, said. Ang has been proposing the 2,000-hectare development to build four runways since August in 2012. He also said in previous reports that PAL will buy 54 new Airbus planes working toward acquiring 100 planes, several of which will be long-range crafts. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to a report by Malaysian banking firm CIMB Group, the airline company is eyeing Bulacan as a possible location for the new airport.

Harbor Star pushes back P539-M IPO

Economy

Jul 112013

MANILA, Philippines – A local tugboat operator has pushed back its P539-million initial public offering (IPO), making it the third company to defer its public share sale due to unfavorable market conditions. “In consultation with issue manager and lead underwriter Abacus Capital & Investment Corp., we request for a deferment of the company’s initial public offering to a later date,” Harbor Star Shipping Services Inc. said in a letter to the Philippine Stock Exchange (PSE). “We believe that current market conditions are less than ideal to undertake and launch the offering,” it added. Late last month, Harbor Star secured the PSE board’s approval to list in the local bourse. Under the original timeline, final pricing was scheduled yesterday, followed by the start of a domestic roadshow on July 11. Offer period will start on July 22 and end on July 26 while Aug. 2 will mark the listing date. “Tentatively, we are looking at a new offer period within September 2013,” Harbor Star said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Since hitting its all-time high at 7,392.20 on May 15, the benchmark PSE index has slipped to 6,308.18 as of yesterday as foreign funds exit emerging markets in hopes of higher yields in advanced economies. Due to the market’s volatility, Robinsons Retail Holdings Inc. and Travellers Hotel Group Inc. deferred their P40-billion and P42-billion IPO, respectively. Three firms have so far debuted in the local bourse this year: Philippine Business Bank, Asia United Bank and Del Monte Read More …

EDC allots $66.3 M for Chile, Peru projects

Economy

Jul 112013

EDC allots $66.3 M for Chile, Peru projects

MANILA, Philippines – Lopez-led geothermal firm Energy Development Corp. (EDC) is spending roughly $66.3 million for its projects in Chile and Peru. EDC would spend $58.3 million for its projects in Mariposa in Chile and the remaining $8 million for its Peruvian projects, the company said in a disclosure to the Philippine Stock Exchange (PSE) yesterday. EDC’s investments in the project form part its joint venture agreement with Alterra Power Corp., a Canada-based energy company for geothermal projects in Chile and Peru. The company announced in June that under a shareholders’ agreement for the Mariposa project in Chile, EDC would acquire 70 percent interest in Compañía De Energia (Enerco). Enerco is an Alterra subsidiary in Chile that owns the Mariposa project. Alterra will continue to hold a 30 percent interest in Enerco through its wholly owned subsidiary Magma Energy Chile Limitada, subject to the terms of the shareholders’ agreement for the Mariposa project, EDC added. “The terms of the project agreements call for EDC to fund the next $58.3 million in project expenditures in the Mariposa project and $8.0 million in project expenditures for all the Peruvian projects to top up Alterra’s past development costs,” EDC said in its disclosure. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For the Mariposa project, the agreement contemplates implementing an agreed work plan that will further develop the Mariposa Project by building infrastructures over the next 18 months, EDC also said. For the Peruvian projects, proponents would conduct various exploration surveys over the next Read More …

COMP bucks new mining bill

General

Jul 112013

MANILA, Philippines – The Chamber of Mines of the Philippines (COMP) opposes the proposed People’s Mineral Resources Act arguing that the proposed bill would render the country’s national mining law useless. In a statement yesterday, the COMP said the proposed People’s Mineral Resources Act set to be filed in the incoming Congress is “designed to kill the responsible mining industry in the Philippines” even though there is no need to repeal the existing Mining Act of 1995. Citing a paper written by COMP vice president for Legal and Policy Ronald Recidoro, the mining group said the Mining Act or Republic Act 7942 “is a world-class piece of legislation that already balances the interests not only of the mining industry and the State, but also fully considers the rights of host communities, indigenous peoples, and the environment.” Recidoro said the 1995 Mining Act is able to address the concerns of the bill’s proponents. He noted that the Mining Act and its implementing rules and regulations provide an environmental protection plan that more than adequately addresses the perceived environmental concerns. He also said the proposals of the so-called alternative mining bill, run contrary to the principle of state ownership of all natural resources in the Constitution. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This as the “collective private ownership” by indigenous cultural communities of all mineral resources found within their claimed ancestral lands proposed by the bill would place substantial portions of the Philippines outside the scope of the Philippine Read More …

SMC to unload banking, power generation business Conglomerate seeks more diversified investments

Economy

Jul 112013

SMC to unload banking, power generation business Conglomerate seeks more diversified investments

MANILA, Philippines – Conglomerate San Miguel Corp. (SMC) is far from over in its diversification process, its top executive said. SMC plans to unload shares in its banking and power generation businesses to pursue projects like cement manufacturing, oil and gas investments and airport development, among others. “We are still pursuing the diversification. Whenever there is a good opportunity to invest in something that will give a good return to SMC, we will pursue that,” said SMC president and chief operating officer Ramon S. Ang to reporters. “We are 60 percent of where we want to be,” Ang said, adding that SMC expects to “accomplish something in the next couple of years.” In 2007, the conglomerate started selling parts of key businesses to fund diversification from the mature food and beverage businesses into high-growth and capital-intensive sectors like power generation, mining, infrastructure and telecommunications. To fund new ventures, the food-to-power conglomerate is set to sell shares in existing units. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For instance, Bank of Commerce has received offers from numerous local and foreign investors for an equity infusion. “We have authorized shares that are not yet issued,” Ang said, adding that SMC is still studying an option to sell up to 40 percent of Bank of Commerce. Late in June, SMC’s plan to sell subsidiary Bank of Commerce fell through as it failed to close the P12.2-billion transaction with buyer CIMB Group Holdings of Malaysia. Its stake in power generation business SMC Read More …

BSP orders banks to remain open on local holidays

Economy

Jul 082013

BSP orders banks to remain open on local holidays

MANILA, Philippines – Banks are no longer allowed to shut down operations during local holidays without prior notice to the Bangko Sentral ng Pilipinas (BSP), a new order said. Under Circular 802 signed June 21, the central bank has ordered lenders and their extension offices to notify the central bank two days before their closure in the observance of a local holiday within their area. The order, which will take effect 15 days from yesterday’s release, asked banks and their branches to “submit, either individually or through their head offices” a “prior notice of their intended closure” to the BSP Supervisory Data Center. The circular covered all banks, their branches and “other banking offices.” BSP officials could not be reached for comment on the new circular. Prior to this amendment to the Manual Regulations of Banks, lending institutions were only tasked to have their closure during local holidays approved by the banking association where they belong. Meanwhile, during national holidays declared by presidential proclamations, no prior notice is required for bank closures. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The required notice (for local holiday closures)…shall be supported by a certification jointly signed by the president of the bank or officer of equivalent position and the head of the branches department,” the central bank explained. The notice and reason of a bank’s closure should be posted on the banks’ establishment to inform depositors and other banking clients.

Prime Media placed under new mgm’t

Economy

Jul 082013

MANILA, Philippines – Prime Media Holdings Inc., formerly First e-Bank Corp., has been placed new management as its major shareholder has defaulted on a P44-million loan. In a disclosure, to the stock exchange Prime Media said its majority stake will be taken over by RYM Business Management Corp. from the former leading investment unit of Hong Kong-based First Pacific Group. “Neo Oracle Holdings Inc., pledgee and owner of shares in Prime Media Holdings Inc., defaulted in the payment of its loan obligation to pledgor RYM, resulting in the foreclosure of the pledged shares,” the company said. Prime Media implemented a trading halt yesterday for the transaction, which involves the transfer of 298.94 million shares or around 77 percent of the listed firm to RYM. RYM is a Makati-based business and management consultancy firm while Prime Media’s principal shareholder Neo Oracle was formerly Metro Pacific Corp., First Pacific’s unit that previously entered into real estate, telecommunications, transportation, consumer, packaging and banking. Late in June, RYM warned Neo Oracle that it will foreclose the Prime Media shares that were given as security for P44.8-million debt. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The company shall initiate foreclosure proceedings on the said shares” unless Neo Oracle paid the debts and its interest rates, RYM said. Prime Media was originally incorporated in February 1963 as Private Development Corp. of the Philippines and then changed to PDCP Development Bank Inc. in the same year. In 2000, the company changed its name to First Read More …

ALI reconsiders P6-B Bacolod project

Economy

Jul 082013

Bacolod City, Philippines – After saying last year that it wants to “disengage” from the project, property giant Ayala Land Inc. said it is still interested to proceed with its P6-billion Capitol Civic Center on the 7.7-hectare prime property of the Negros Occidental provincial government located in Bacolod. ALI said that it is willing to proceed with the Capitol project if the court case on the said property filed by rival bidder SM Prime Holdings Inc. is “resolved with finality in favor of the province.” In a letter to Negros Occidental Gov. Alfredo Maranon Jr. dated July 3, ALI senior vice president Emilio Tumbocon said: “Please trust that your steadfast support and advancement for our transaction, notwithstanding the challenges, weigh in greatly in our consideration of our position and assessment of our plans.” “While we are open to proceed with the Capitol project, we remain seriously concerned with the pending legal case as this compromises our ability to acquire clean and undisputed legal title to the property and undertaking the full development of the same, particularly that area subject of our deed of conditional sale, especially since our plans require us to develop the area into components which are intended to be marketed and sold,” Tumbocon wrote further. “If you are amenable to our suggestion, we are willing to sit down with you to discuss the manner by which we could proceed with the transaction,” Tumbocon, also ALI’s group head for Visayas-Mindanao and Superblock projects, said. In a press conference Friday, Maranon, however, Read More …

PEZA asks Pacquiao to submit plans for ind’l estate

Economy

Jul 082013

PEZA asks Pacquiao to submit plans for ind’l estate

MANILA, Philippines – Boxing idol Manny Pacquiao has to submit his firm’s immediate plans for an industrial estate to be developed in South Cotabato to the Philippine Economic Zone Authority (PEZA) or the company could lose its permit to undertake work on the property. PEZA director general Lilia De Lima told reporters in a chance interview yesterday the agency would ask the boxing icon’s company, Manny Pacquiao Heights Development Corp. (MPHDC), to provide its plan and submit the necessary documents to be able to undertake work on the economic zone in General Santos. She said the move is being taken as the permit given to MPHDC to develop the economic zone in 2009 is only valid for five years. “They can develop in tranches. The problem is, if there is no development in five years, we can cancel the permit,” she said. Despite the approval of the permit to develop the economic zone in 2009, she said, the company has yet to submit the necessary documents to the PEZA to be able to begin work on the site. MPHDC has expressed interest to install a 200-hectare special economic zone as part of a 400-hectare company-owned estate in General Santos. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The project, which would involve the investment of P1.2 billion, is intended to be developed for medical tourism. In order to start work on the project, Pacquiao’s firm would have to provide the PEZA an endorsement from the Department of Health and Read More …

Sale of 20% stake in Metrobank power unit ‘credit positive’ – Moody’s

Economy

Jul 082013

Sale of 20% stake in Metrobank power unit ‘credit positive’ – Moody’s

MANILA, Philippines – International rating firm Moody’s Investors Service said Metropolitan Bank & Trust Co.’s decision to sell 20-percent stake of its power subsidiary Global Business Power Corp. to Japan’s Orix Corp. is “credit positive” for the bank. In a statement, Moody’s said the sale would further improve the bank’s capital ratio. “This sale is credit positive for Metrobank because we estimate its consolidated Tier 1 capital ratio will increase to 15.3 percent from 14.8 percent at the end of March, after factoring in the gains from the share sale. Such a ratio compares with the 14.7-percent average Tier 1 ratio at the end of March for the Philippines-based banks we rate,” it said. “Another credit positive is that the disposal allows Metrobank to avoid a punitive deduction in its Tier 1 capital that results from equity investments in non-financial entities under the new Basel III capital framework to be implemented next year,” it added. Moody’s estimated that if Metrobank had retained its current stake in GBPC, its Tier 1 ratio would decline to 13.6 percent under the new capital regime, based on March 2013 financials. From a strategic perspective, the credit watcher said the transaction reflects Metrobank’s proactive efforts to dispose of non-core assets and free up capital in preparation for business growth and higher capital requirements under the new Basel III regime. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We understand that management plans to dispose of its remaining 29-percent stake in GBPC by the end of 2013. The Read More …

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