RFM acquires Royal pasta brand

 Economy
Jan 162014
 
RFM acquires Royal pasta brand

MANILA, Philippines – Food and beverage firm RFM Corp. has strengthened its foothold in the pasta segment with the acquisition of the pasta business of Anglo-Dutch consumer goods giant Unilever Group for more than P2 billion. The deal that combines the two largest pasta makers in the country will allow RFM to significantly boost its market share, officials said yesterday. In a regulatory filing,  RFM, the maker of Selecta ice cream and Fiesta pasta, said it acquired the brand Royal and pasta business of the Unilever Group. “The transaction was valued at $47.8 million or over P2.1 billion, covering mainly the Royal trademarks, goodwill and inventories,” RFM said. RFM president and CEO Jose A. Concepcion III said the Royal brand, which has a premium price point, will strengthen the market leadership of RFM and complement the value-positioning of the Fiesta brand. “I estimate our market share to go beyond 50 percent with the acquisition,” said RFM chief operating officer Felicisimo M. Nacino Jr. As of end-2013, Fiesta pasta cornered 35 percent of the market. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Fiesta and Royal brands are the market leaders in spaghetti, macaroni, and pasta-and-sauce bundles that provide more convenient easy-to-prepare pasta meals. Concepcion said the company plans to grow the pasta market by offering ready-to-cook and affordable pasta meals to Filipino consumers. Proceeds from RFM’s P1.62-billion private placement last October will fund the acquisition, with the balance to be sourced from internally generated cash. RFM said the Royal Read More …

Cigarette firm to assist tobacco farmers

 Economy
Jan 162014
 
Cigarette firm to assist tobacco farmers

MANILA, Philippines – Cigarette manufacturer Mighty Corp. will embark this year on a three-pronged assistance program to benefit 65,000 tobacco farmers in Cagayan Valley and Ilocos Region. Mighty Corp. executive vice president Oscar Barrientos said the company allocated P10 million for the distribution of 35 irrigations pumps to some 35 farmers associations, 10 mini-tractors in tobacco-growing provinces, tools and farm implements. Barrientos said the agricultural assistance would serve as common-service production equipment to groups of organized tobacco farmers for tobacco farms that have no access to irrigation facilities and small tractors. The company will also provide some 20,000 long-sleeved farm shirts to ease the plight of tobacco farmers. Hand in hand with the agricultural production assistance, the company will launch a scholarship program, in tandem with National Tobacco Administration (NTA) in the two regions for children of tobacco farmers. At present, NTA has en existing scholarship grants to 400 scholars who are provided P5,800 financial assistance each. “Mighty Corp. will initially support NTA’s scholarship grants with 200 new college scholars this coming school year,” Barrientos said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The third component of the social responsibility program is Mighty Corp.’s institutional support for the annual search for outstanding tobacco farmers. The search being done by NTA covers three categories, one for Virginia tobacco growers, another for burley tobacco farmers and a third for native tobacco producers.

Chinabank pays P1.58 B for control of Plantersbank

 Economy
Jan 162014
 
Chinabank pays P1.58 B for control of Plantersbank

MANILA, Philippines – China Banking Corp. (Chinabank), a banking unit of the SM Group, has completed the purchase of a controlling 84.77 percent stake in Planters Development Bank for P1.58 billion, a bank disclosure to the Philippine Stock Exchange (PSE) said. Under a share purchase agreement (SPA), Chinabank said it has paid P1.58 billion out of the total amount of P1.863 billion for the full acquisition of Plantersbank. The 84.77 percent capital stock are owned by the family of former Amb. Jesus Tambunting and the Dutch development bank FMO.  The acquisition of the remaining 15.23 percent percent common stock for P283.7 million will be made through a tender offer, Chinabank said.  Based on audited financial statements as of Dec. 31, 2012, Plantersbank equity net of PFRS-related adjustments stood at P919 million. At the ensuing special stockholders’ meeting, Tambunting and Carlos Borromeo were re-elected to the new Plantersbank board as chairman and president, respectively. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 With Plantersbank now part of the China Bank Group, China Bank is now the fifth largest private universal bank in the country with P410 billion in assets as of Sept. 30, 2013.  It closed 2013 with 368 branches – 295 for the main bank and 73 for the savings bank. With the addition of Plantersbank’s 78 branches and two unopened licenses, the combined branch network now stands at 448 branches – well over the 400-branch network target of China Bank for 2014. The strategic partnership represents opportunities for Read More …

Global HR solutions provider opens Phl office

 Economy
Jan 162014
 
Global HR solutions provider opens Phl office

MANILA, Philippines – Global human resources (HR) solutions provider SilkRoad has established a new office in the Philippines as it seeks to grow its operations in the country and in Asia. In a statement, SilkRoad chief operating officer and co-founder Brian Platz said the company decided to set-up an office in the country as it sees an important market given the fast pace at which the economy is growing. “We believe the Philippines not only presents a unique opportunity for us to help local companies strengthen their talent acquisition and management programs and build their bottom line; our presence on the ground will also act as a strategic hub, helping us grow our operations all over Asia,” he said. In an increasingly competitive environment, he said companies have to take their business to new levels and differentiate themselves in the market. “SilkRoad helps companies manage their talent pool to keep things efficient,” he said. SilkRoad provides a full suite of HR software solutions to small and medium businesses that enable them to find, attract, develop and retain the best talent possible. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As a solutions provider, SilkRoad leverages the potential of the Philippines as a hub of talent in software development. The company’s clients can also use a range of technologies to determine influence among their employees. “By learning more about their most influential employees, organizations can better understand how they contribute to the company and leverage their influence to help drive Read More …

Net hot money inflow up 8% to $4.225 B in 2013

 Economy
Jan 162014
 
Net hot money inflow up 8% to $4.225 B in 2013

MANILA, Philippines – The net inflow of foreign portfolio investments, also known as hot money, surged eight percent in 2013, exceeding the central bank’s projection on the back of the country’s sound macroeconomic fundamentals. Bangko Sentral ng Pilipinas data showed net hot money inflow went up to $4.225 billion last year from $3.911 billion in 2012. It was also way above the revised $3.2 billion assumption of the central bank for 2013. Foreign portfolio investments are also called hot money given the ease with which the funds enter and exit economies. The BSP attributed the increase in hot money inflow to the country’s sound macroeconomic fundamentals; sustained high growth in the first three quarters; (and) the investment grade ratings given to the Philippines. The central bank also said crisis in developing countries such as the United States and those in the euro zone also caused funds to be diverted to emerging economies such as the Philippines. Gross inflows jumped 54 percent to $28.404 billion in 2013 from $18.483 billion in 2012, while gross outflows climbed 66 percent to $24.180 billion from $14.571 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last year’s gross inflows were the highest recorded since 1999, surpassing the previous record high of $18.5 billion in 2012. “There was a steady stream of investment inflows of more than $2 billion a month except in the ghost month of August, believed to be unlucky for business, and in December due to the announcement of the forthcoming Read More …

Visit of Secretary John Kerry

 Economy
Jan 162014
 
Visit of Secretary John Kerry

Last month, the US Secretary of State made a very brief visit to Manila.  As announced by the embassy, the objective of the visit was to repair the damage to the credibility of America’s so-called “pivot to Asia” from President Obama’s canceled trip as well as Kerry’s canceled visit due to a typhoon. It was my expectation that he would comment on the recently announced Chinese Air Defense Zone as well as clarify his position on the Clinton “pivot to Asia” doctrine versus his “rebalancing to Asia”. Moreover, I expected he would also address an enhanced economic cooperation in the Philippines and the region. I was fortunate to have been invited to a small gathering of business executives and former government officials at the Diamond Hotel. After a one hour delay, the Secretary made brief remarks focusing on the resilience of the Filipino people, the confirmation of an additional $40 million for military assistance and verbal support for securing Category 1 from the Federal Aviation Authority. He did focus on the importance of the Trans Pacific Partnership (TPP) and encouraged the Philippines to join.  President Aquino in September 2010 announced we are open to joining if it benefits the country. Such membership, however, would require Constitutional amendments to some of its economic provisions including on foreign equity restrictions. But for his own reasons, the President adamantly rejected proposals to amend the Constitution. Subsequent to our brief meeting, the Secretary and his party went to DFA for a meeting with Secretary Read More …

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