Lucio Co holding firm completes share swap

 Economy
May 302013
 
Lucio Co holding firm completes share swap

MANILA, Philippines – Retail tycoon Lucio Co has completed a P74-billion share swap that finalized the infusion of his retail, petroleum and real estate assets into listed holding firm Cosco Capital Inc. Cosco Capital will raise fresh funding by selling two billion shares to institutional investors, the company said in a disclosure. In the transaction, Cosco Capital issued 4.98 billion shares in exchange for 1.51 billion common shares of Lucio Co Group of Companies (LCGC). “The total value of the swap transaction is P74.8 billion,” said Cosco Capital. LGCG is composed of Puregold Price Club Inc; Premier Wine & Spirits Inc; Meritus Prime Distributions Inc; Montosco Inc; Pure Petroleum Corp; Ellimac Prime Holdings Inc; and Nation Realty Inc. Following the share swap, Cosco Capital will have a total issued capital of 6.26 billion shares. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The holding firm yesterday implemented a voluntary trading halt for its shares. Cosco Capital said principal shareholders Lucio and Susan Co will also conduct a special block sale of up to two billion common shares to qualified institutional buyers in the Philippines and abroad. Under the “top-up” equity placement, the major shareholders will then subscribe to the same number of shares sold to institutional investors. Cosco Capital earlier planned to conduct a $500-million sale of existing and new shares that will increase its public float and beef up liquidity. The company tapped Deutsche Bank and JPMorgan for the deal. Cosco Capital, formerly Alcorn Gold Resources Corp., earlier Read More …

SMC secures $1-B loan to pay debts

 Economy
May 302013
 
SMC secures $1-B loan to pay debts

MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) has secured a $1-billion loan from five banks to pay off its existing debts. Another $200 million will be tapped to maximize available funding under a $1.3-billion, five-year loan agreement, SMC said in a disclosure yesterday. “The company availed of a $1.3-billion facility loan agreement, which includes a greenshoe option,” SMC said. “To date, of the total amount available under the facility, the company has drawn $1 billion to pay in full and refinance its existing $1-billion loan,” it added. SMC earlier tapped Australia and New Zealand Banking Group Ltd., DBS Bank Ltd., Deutsche Bank AG, Bank of America Merrill Lynch and Standard Chartered Bank for a loan agreement. “The company intends to avail of an additional $200 million through the exercise of the greenshoe option under the facility,” SMC said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The diversified conglomerate has been paring its debts through new loans that offer better terms. In April, SMC generated $800 million from the largest issuance of a dollar-denominated bond by a Philippine company. It forms part of a $2-billion medium-term notes program of SMC. The holding firm is undergoing a five-year, $34.83-billion investment program that will make it the largest investor in the Philippines. The conglomerate said it will spend an average of P283.52 billion every year until 2017. From its core brewery and food business, SMC has expanded into power production (SMC Global Power Corp.), downstream oil sector (Petron Corp.), Read More …

Erap must revive Manila

 Economy
May 302013
 
Erap must revive Manila

Many have observed that becoming mayor of Manila is Erap’s last hurrah. It may well be just that and because of it, there is a lot at stake in terms of legacy issues in the next three years of Erap reigning supreme at Manila City Hall. Winning the election was the easy part, even if the homestretch proved to be more of a cliffhanger than most people thought. But as Dolphy once said, what do we do after we have won? For someone like Erap who had once been president of the country, vice president, senator and mayor of San Juan for the longest time, there should be nothing more to prove. But the abbreviated term of Erap in Malacañang and the corruption trial and eventual conviction and instant pardon make it necessary for Erap to prove himself all over again. If Erap failed to be the best president we ever had, he now has the opportunity to be the best mayor Manila ever had. If he manages that, maybe all will be forgiven, so to speak. He would have shown the world that what happened during EDSA 2 was undoubtedly a big and terrible mistake. Making something out of this opportunity to revive the City of Manila is a chance of a lifetime for Erap. Not many politicians are given a second chance in this grand manner. The challenges of reviving Manila can be as difficult and complicated as running the country, but maybe not as impossible. The basic Read More …

Phl stocks tumble on US Fed concerns; Q1 GDP fails to cheer market

 Economy
May 302013
 
Phl stocks tumble on US Fed concerns; Q1 GDP fails to cheer market

MANILA, Philippines (Xinhua) – The Philippine stock market suffered a huge loss today despite a better-than-expected growth of the Philippine economy in the first quarter. The bellwether Philippine Stock Exchange index dived by 3.81 percent or 275.22 points to 6,953.33. The broader all-share index slipped by 3.02 percent or 133.99 points to 4,298.18. Trading volume reached 1.9 billion shares worth P16.86 billion ($397.26 million) with 160 stocks declining, 15 advancing, and 38 were unchanged. All six counters were down. Analyst Justino Calaycay of Accord Capital Equities Corp. said a string of negative news overseas pulled down the Philippine stock market on Thursday, overshadowing the positive gross domestic output (GDP) of the country. “Concerns over the U.S. Federal Reserve’s stimulus stance and questions over European and China’s growth added dark clouds over the horizon,” Calaycay said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Overnight, US stocks retreated off a record high on fears that improving economic numbers may prompt the Federal Reserve to step on the stimulus brakes. European shares were likewise down with investors reading off a similar note, in addition to International Monetary Fund’s outlook of a slower growth for China, the world’s second largest economy. The international, multilateral lending institution project China to grow at less than 8 percent this year. These developments overshadowed the news of  a higher than expected growth rate. The National Statistical Coordination Board reported Thursday that an upbeat business and consumer sentiment, increased public spending and a robust manufacturing and construction Read More …

Tourist arrivals up by 10%

 Economy
May 302013
 
Tourist arrivals up by 10%

MANILA, Philippines – Foreign visitor arrivals soared in the first four months of the year with a 10.12-percent increase from the same period in 2012, the Department of Tourism (DOT) noted on Thursday. The state agency said a total of 1,649,458 foreigners visited the country from January-April, with January yielding the largest volume of 436,079 visitors and February posting the highest growth of 15.52 percent. The figure represents 30 percent of the target arrivals for 2013, DOT added. Bringing the most number of visitors was Korea with 406,595 or a market share of 24.65 percent and growth of 23.08 percent. This was followed by the United States with 246,011 visitors or a 14.91-percent share, Japan (148,950 or 9.03), China (132,307 or 8.02 percent), Australia (72,015 or 4.37 percent) and Taiwan (53,867 or 4.24 percent). Rounding out the top sources of foreign visitors are Singapore with 55,096 (15.90 percent), Canada with 50,352 (4.25 percent), Hong Kong with 45,734 (12.87 percent), United Kingdom with 43,055 (3.10 percent), Malaysia with 35,069 (8.36 percent) and Germany with 28,799 (9.16% percent). Other source markets with double-digit gains include Russia (30.33 percent), India (23.13 percent) and France (20.10 percent), DOT said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “This growth is an affirmation of our various marketing and destination development activities, strengthened by partnerships with the various stakeholders. While the upsurge may primarily be attributed to the summer season, it is also a clear indication that the nation has galvanized its reputation as an Read More …

Gov't keeps targets despite surprising first-quarter growth

 Economy
May 302013
 
Gov't keeps targets despite surprising first-quarter growth

MANILA, Philippines – Growth targets will be retained while inflation forecasts will be revisited, officials said, after the first-quarter economic expansion both surprising  policymakers and becoming the fastest in Asia for the period. Socioeconomic Planning Secretary Arsenio Balisacan said the Aquino administration is “sticking” to its six- to seven-percent growth target for the year “at the moment,” even after the uptick for the first three months registered way beyond at 7.8 percent. “We periodically review assumptions. We will consider first quarter performance when we meet,” Balisacan told reporters on Thursday after the data’s announcement. The Development Budget Coordinating Committee (DBCC), the body setting macro-economic targets, has yet to set a meeting to review its assumptions, but Budget Secretary Florencio Abad acknowledged growth would be sustained in the coming months. “We intend to sustain or surpass the very standards we set over the succeeding quarters,” said Abad, who is also DBCC chairman, in a statement. He did not elaborate. The 7.8-percent growth last quarter surpassed all growth rates in Asia, notably in China (7.7 percent), Indonesia (six percent), Thailand (5.3 percent), Vietnam (4.9 percent), Malaysia (4.1 percent), Japan (3.5 percent), South Korea (1.5 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Strong consumption driven by election-spending, investments and government spending were tagged as the drivers for the growth, which was the fastest in three years. A stable inflation, averaging three percent as of March, was also noted. However, the Bangko Sentral ng Pilipinas (BSP) said there is need to Read More …

NEDA chief: GDP growth still about the poor

 Economy
May 302013
 
NEDA chief: GDP growth still about the poor

A man cooks his food along a sidewalk in Tondo district, Manila. EDD GUMBAN/FILE PHOTO MANILA, Philippines – The country may have an impressive gross domestic product (GDP) in the first quarter, but an economic official believes that this growth is still about its impact to the poor. The National Statistical Coordination Board (NSCB) revealed on Thursday that the Philippines’ GDP grew by 7.8 percent in the first three months, exceeding market and government expectations and beating Southeast Asian nations and even China. But Socioeconomic Planning Sec. Arsenio Balisacan admitted that the issue is all about making the GDP growth inclusive. “We know, however, that inclusive growth is not about averages, but about the lower part of the income distribution, namely, the poor,” said Balisacan, who is also the director-general of the National Economic and Development Authority (NEDA). “On the other hand, we also know that growth is still the necessary condition for inclusive growth,” he added. Malacanang said its goal is to ensure that the recent economic gains of the country are being felt by all. “That is always the target; that nobody will be left behind,” said Deputy Presidential Spokesperson Abigail Valte. “With the high numbers that we have, even with the boost in investor confidence, the rallies that you’ve been seeing in the stock market, ang importante po sa atin ay ‘yung maramdaman ng lahat [‘yung economic growth],” she added. But Valte noted that the effects of these economic gains do not happen overnight. The NSCB said Read More …

Globe asks court for Bayantel's debt restructuring

 Economy
May 292013
 
Globe asks court for Bayantel's debt restructuring

MANILA, Philippines — Local carriers Globe Telecom and Bayan Telecommunications have filed a motion with a court seeking to restructure Bayantel’s debt of $423.3 million. Following Globe’s tender offer for the Bayantel debt in 2012, Globe currently holds approximately 96.5 percent of the total financial indebtedness of Bayantel. The joint motion aims to achieve a rehabilitation of Bayantel. Globe disclosed Bayantel’s operations from traditional fixed line services, growing competition, have not generated sufficient revenue to continue making the debt payments under its present rehabilitation plan. If approved by the court, Globe expects the restructuring would lessen the debt to about $131.3 million. Globe believes such a restructuring would allow them to further strengthen collaborative efforts with Bayantel regarding local exchange networks, corporate data and broadband businesses.

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