Meralco, First Pac likely to borrow for Singapore venture

 Economy
Mar 122013
 
Meralco, First Pac likely to borrow for Singapore venture

MANILA, Philippines – Manila Electric Co. (Meralco), the country’s largest power distributor, and Hong Kong-based investment holding First Pacific Co. Ltd., are eyeing to borrow from lenders to fund their S$600-million ($488 million) acquisition of a Singaporean power firm, a top executive said. Meralco chairman and First Pacific managing director Manuel V. Pangilinan said the two companies have enough funds though to close the deal by the end of the month but are likely to refinance the acquisition costs. “Both Meralco and First Pacific have the funds necessary to close. We’re now looking at, as part of the total consideration, borrowing some of the acquisition funding. We don’t know the exact quantum yet, but both First Pacific and Meralco have the funds,” Pangilinan said on the sidelines of Meralco’s Luminaries Awards Monday night. Last week, Meralco announced that together with First Pacific, it would “take a 70-percent interest in a Singapore power project using a joint venture company formed for this purpose.” Both companies have formed FPM Power Holdings Ltd. (FPMP) to acquire GMR Energy (Singapore) Pte Ltd. from India’s GMR Infrastructure Ltd. (GMRIL). The joint venture company will shell out S$600 million plus foreign exchange adjustments to buy out GMRIL’s entire 70-percent share in GMR Energy. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We have the funds necessary to close it on due date. Most likely, we will refinance with some leverage post-closing (date),” Pangilinan stressed. GMR Energy is currently in the advanced stage of construction of Read More …

Coca-Cola closes Laguna plant but remains committed to Phl investments

 Economy
Mar 032013
 
Coca-Cola closes Laguna plant but remains committed to Phl investments

MANILA, Philippines – Beverage giant The Coca-Cola Co. has decided to close its plant in Calamba, Laguna to streamline its regional operations. The company, however, said it remains committed to investing in the Philippines for the next 100 years. Bessie Arciga, corporate communications and brand public relations manager of The Coca-Cola Export Corp., said in an email that the decision to close the Canlubang concentrate plant will affect 57 direct employees. “In order to streamline operations, The Coca-Cola Co. continuously reviews its concentrate supply chain to drive greater efficiency and position itself to meet future growth in Asia. As a result of that review, the company has decided to produce all concentrate and beverage base for the Philippines in Singapore, and to close the Philippines concentrate plant,” she said. “This decision will allow us to be more efficient and to increase flexibility in the Asia supply chain,” she said further. The plant closure is expected to be completed within the year. To mitigate the effect of the plant closure, the firm is reassigning employees in Canlubang to its other plants or facilities in the country and in Singapore. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The company will likewise be giving a competitive severance package to its employees. But while the firm has decided to halt operations at its plant in Canlubang, it intends to pursue investments in the country. “Although we have closed our plant, the company remains committed to investing in the Philippine economy not only Read More …

US Navy pushes back USS Guardian salvage ops due to rough seas

 News
Feb 102013
 
US Navy pushes back USS Guardian salvage ops due to rough seas

Poor sea conditions forced the US Navy on Sunday to push back the operation to dismantle USS Guardian, a minesweeper ship, to pull it out from the Tubbataha Reef where it has been grounded since Jan. 17. The US Navy team would continue the salvage operation when the bigger crane ship Jackson 25 arrives, said Coast Guard Palawan District chief Commodore Enrico Efren Evangelista. Earlier reports said the first crane ship Smit Borneo from Singapore encountered anchoring problems last Saturday, causing a delay in the start of the salvage operation. “Smit Borneo is there but could not anchor due to weather. Its anchoring should be precise. It tried (to anchor) but so far, out of the four anchors, only one had a good bite at seabed,” said Evangelista. After the Tubbataha Protected Area Management Board approved the salvage plan crafted by the US Navy, Coast Guard commandant Rear Adm. Rodolfo Isorena announced on Wednesday the dismantling of the USS Guardian may start Sunday or Monday. However, the operation hit a snag due to anchoring problem. Citing information from US Navy officials, Evangelista said Jascon 25 departed Singapore around 4 p.m. Saturday and is due to sail directly to Tubbataha Reef. He said the bigger crane ship is expected to arrive around 9 p.m. Friday. The USS Guardian ran aground on Tubbataha Reef last Jan. 17, after a port call at Subic Bay, a former base of the US Navy. Latest estimate showed that the grounding of the ship has damaged 4,000 Read More …

Seair to impose higher fuel surcharge

 Economy
Feb 092013
 
Seair to impose higher fuel surcharge

MANILA, Philippines – Low-cost carrier Southeast Asian Airlines (Seair), a unit of Tiger Airways Holdings Ltd. of Singapore, is set to impose higher fuel surcharge for all its international and domestic passengers on the back of the continued rise in the price of aviation fuel in the world market. Seair has filed a petition with the Civil Aeronautics Board (CAB) seeking to impose a fuel surcharge of P500 for all its international passengers and P300 for all its domestic passengers flying within the Philippines except Davao. The budget airline is also set to impose a fuel surcharge of P400 for the passengers of its Manila to Davao flights. The CAB allows airlines to impose fuel surcharge on international and domestic passengers as a temporary relief to help them recover losses arising from the increase in jet fuel prices in the world market. Latest results of the jet fuel price monitor of the International Air Transportation Association (IATA) showed that average price of jet fuel rose 3.8 percent to $132.4 per barrel from a month ago level or higher than the full year target of $130.3 per barrel set by IATA. Seair flies from Manila to Cebu, Davao, Tacloban, Iloilo, Puerto Princesa, Bacolod, and Boracay via the Ninoy Aquino International Airport (NAIA). Its international destinations include Hong Kong, Singapore, Bangkok, and Kota Kinabalu via the Clark International Airport in Pampanga. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In August last year, Tiger Airways through wholly-owned subsidiary Roar Aviation II Read More …

Filipino more money-wise than before – survey

 Economy
Feb 042013
 
Filipino more money-wise than before - survey

MANILA, Philippines – More Filipinos are becoming wiser in their finances, according to a survey commissioned by Citibank Philippines. Results of the annual Citi Fin-Q survey showed that among 500 Filipino respondents, nine out of 10 said they create a budget on a monthly basis, while 65 percent said it is important to stick to their budget. Eight out of 10 also said they own insurance products or own insurance protection, while 63 percent said they are on track with their retirement savings or had already set aside some savings for it. Citi added that among those surveyed, six out of 10 said they are aware of their net worth. The survey said more Filipinos now understand the value of budgeting and planning their finances, as respondents passed the 50-point mark and scored 53 out of 100 in the survey. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Respondent in the survey were scored on 11 questions about financial well-being, with a maximum possible score of 100. “The improved score was driven by increased awareness among respondents of the importance of planning personal finances, ownership of several financial products such as investments and insurance, and a general optimism on their financial future,” Citi said. Meanwhile, across Asia Pacific, the survey noted that the score was above the 50-point mark at 53.2 points. Sixty-seven percent added that they are optimistic about their financial futures. In terms of savings, 44 percent said they set aside or save money every time they Read More …

SM Prime mulls $200-M syndicated loan

 Economy
Jan 312013
 
SM Prime mulls $200-M syndicated loan

MANILA, Philippines – Shopping mall giant SM Prime Holdings Inc. is planning to raise around $200 million through a syndicated loan facility to bankroll its aggressive expansion here and in China, a company official said. In an interview, SM Prime chief financial officer Jeffrey Lim said the company is in talks with several financial institutions for a syndicated loan transaction, targeted in the first or second quarter this year. Lim said the company remains on an expansion binge to capitalize on a booming economy and robust consumer spending. The firm has set a P63-billion three-year capital spending program to build up to 18 malls in its bid to become a regional player. SM Prime may spend P21 billion each year to build four to five new malls at home and one mall annually in China. SM Prime ended 2012 with 46 malls across the country and five in China, with an estimated combined gross floor area of 6.3 million square meters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The SM China malls are enjoying healthy increases in rental rates with occupancy level currently at 95 percent. SM Prime continues to sees vast opportunities in China given the latter’s growing population and emerging middle-class. The group is currently looking to acquire five properties in its second biggest market to further widen its geographical footprint. The expansion is also in line with the SM Group’s strategy to list its China assets either in Hong Kong or Singapore by 2015 in Read More …

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