Stock News 2012: Banks’ NPL Ratio Improves Further To 2.05% In Third Quarter

English: Central Bank of the Philippines (Main) (Photo credit: Wikipedia)

The Bangko Sentral ng Pilipinas (BSP) yesterday reported that the 37 major banks’ non-performing loans (NPL) ratio improved to 2.05 percent as of the end of the third quarter as soured loans continue to decline.

BSP’s latest data showed that NPL ratio as of end-September was 0.03 percentage point lower compared to end-August and by 0.41 percentage point lower than last year’s 2.46 percent. Net of interbank loans, the NPL ratio was lower by 0.03 percentage point to 2.15 percent.

Borrowers or debtors with unpaid loans for 30 days are considered NPL accounts while unpaid loans of more than 90 days will generally be considered in default.

The central bank in October revised the rules on banks’ NPL by including the net amount of NPLs as a “complementary measure” to gross NPLs. Net NPLs are gross NPLs less specific allowance for credit losses on the total loan portfolio.

In the first nine months of the year, the 37 universal/commercial banks have reported R69.94 billion-worth of borrowers’ past due loans. This is lower than August’s R70.43 billion and the same period in 2011 of R74.33 billion.

The big banks’ total loan portfolio, in the meantime, increased to R3.41 trillion from R3.378 trillion in the previous month and R3 trillion last year.

The BSP said NPL ratio improved because of the 0.69 percent reduction in total bad loans and the 0.96 percent expansion in total loan portfolio.

“The industry’s provisioning against potential credit losses remained adequate,” stated the BSP.

The NPL coverage ratio or loan loss reserves to NPLs strengthened to 136 percent from 135.81 percent in August and from last year’s 123.70 percent ratio.

The coverage ratio for non-performing assets (NPA) narrowed to 69.39 percent from 69.44 percent in August but it was higher compared to last year’s 62.68 percent ratio. As of end-September, the big banks’ NPAs declined to R176.34 billion from R177.12 billion in the previous month and R191.06 billion the same period in 2011.

NPAs are computed including NPL and real and other properties and acquired or ROPA

The banks’ restructured loans, on the other hand, totaled R35.5 billion, hardly changed on a monthly basis but considerably lower compared to last year’s R40.98 billion.

http://www.mb.com.ph/articles/383808/banks-npl-ratio-improves-further-to-205-in-third-quarter#.T8GjbOSmj3w

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Stock News 2012: Stumbling block to banking deal of the decade

Philippine National Bank (Photo credit: Wikipedia)

While Bank of the Philippine Islands has entered an advanced stage of negotiations to acquire a controlling stake in Philippine National Bank, the prospective banking deal of the decade seems to have encountered a major stumbling block—getting the imprimatur of taipan Lucio Tan.

The “Kapitan” may have started estate planning and chosen a successor, but all major deals of course have to get his final blessing, and from what we gather, he needs further convincing.

Some speculate it has something to do with a supposed tempting counter-offer from fellow taipan Henry Sy-led Banco de Oro Unibank, which will lose its bragging right as the country’s biggest bank if and when the deal is reached.

While a Chinoy versus Castilaloy banking edition battle does not seem far-fetched, BDO has officially denied to the Philippine Stock Exchange any plan for a PNB takeover. BDO chair Teresita Sy-Coson herself also told Biz Buzz: “We did not look at it.”

This is probably because a bidding war is not a plausible angle if the stumbling block is not the price at which PNB is to be valued. Several sources close to the Lucio Tan group said it has something to do with the issue of dilution or the deal structure, which will leave the LT group with a minority stake (20 percent) in a holding firm that will own 60 percent of an enlarged BPI.

“He doesn’t want a minority stake in any business,” one source said. Another source described it as a “withdrawal syndrome”—as the emperor loses power and influence.

Instead of something like a Digitel-PLDT deal, it seems that what Kapitan would have preferred was the Philippine Airlines-San Miguel or Fortune Tobacco-Philip Morris partnership deals wherein the LT group remained as an equal partner, only without management control. But in this case, even a merged PNB-Allied Bank entity is not an equal partner to BPI, the country’s most valuable bank.

http://business.inquirer.net/94959/biz-buzz-stumbling-block-to-banking-deal-of-the-decade

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Stock News: SMC, MPIC clash on road projects

The Skyway System. (Photo credit: Wikipedia)

Conglomerates Metro Pacific Investments Corp.  (MPIC) and San Miguel Corp. are on a collision course again over differing proposals on how to fund and build the shared portion of two north-to-south connector roads.

San Miguel-led Citra Metro Manila Tollways Corp. said it planned to build the shared Metro Manila Skyway extension from Buendia to the Polytechnic University of the Philippines (PUP) on its own and just get a reimbursement from MPIC after construction has been completed.

“I think our proposal is fair and makes the most sense. Everybody wins,” Citra president and CEO Shadik Wahono said at a press conference. “If we pay 50 percent of the cost, but receive less than 50 percent of the traffic, then it will be a negative investment on our part,” he said.

He said both firms would end up splitting the cost of construction of the shared road, with their respective contributions being determined by how much traffic they would separately bring in.

Worth an estimated P7 billion, the 5-kilometer extension will be shared by both Citra and MPIC, which both have approved proposals to construct roads on separate alignments that aim to connect the Skyway with the North Luzon Expressway (NLEx).

Both proposed roads, named the “connector road” for MPIC and Skyway Phase 3 for Citra, will start at the end of the shared portion before veering off in different directions to their respective alignments.

MPIC holds the concession to NLEx while Citra controls the Skyway.

“If more of the cars go to their connector, then they will have to pay a bigger portion of the bill. Conversely, if they have fewer cars, then their share will be smaller,” Wahono said. “The same goes with us.”

As with the cost of construction, Wahono said Citra’s proposal to the government also indicated that revenues from toll to be collected from motorists should be split between the two companies based on the share of traffic.

MPIC, chaired by Manuel V. Pangilinan, disagreed with Citra’s proposal, adding that the shared portion of both connectors should be built under a 50-50 joint venture.

“What we want is to be treated as a co-equal in this project. They want to go solo and just ask for a reimbursement from us [after construction]. We won’t allow that,” said Ramoncito Fernandez, president of MPIC unit Metro Pacific Tollways Corp., the unit handling the group’s road assets.

Fernandez went as far as to accuse Citra of “bad faith” for submitting a proposal to the government while negotiations with the MPIC group were still ongoing.

In a statement, Citra said its officials met with counterparts from MPIC several times to discuss the revenue-sharing scheme. The meetings happened on September 20, October 24 and November 14.

Citra claimed that last November 20, MPIC president and CEO Jose Ma. K. Lim agreed that the new Citra offer was superior to what MPIC had originally proposed.

In the earlier meetings, Citra said MPIC acknowledged the San Miguel group’s prior rights and concession over the so-called common alignment and it accepted that Citra would construct the common segment provided MPIC would be given proper connection at PUP.

MPIC also agreed that both parties would have toll plazas after the common segment and the common segment would charge based on an “open system” or fixed tolls to avoid interoperability issues.

http://business.inquirer.net/94971/smc-mpic-clash-on-road-projects

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Stock News 2012: Ayala, Rustan’s plan dep’t store chain

Shangri-La Plaza (Photo credit: Brian Sahagun)

Ayala Land Inc. will soon debut into the department store retailing format in partnership with the Rustan’s group by investing in the anchor tenant of a new Ayala shopping center rising in Fairview, Quezon City.

This will implement an earlier announced equal joint venture with the Tantoco family’s Specialty Investments Inc. (SII) to “pursue opportunities in the Philippine retail sector.”

ALI and Rustan’s are likewise investing in the 24-hour convenience store business under Japanese retailing chain FamilyMart, the world’s second-largest convenience store operator.

Although a late entrant in the high-volume but low-margin retailing business in department store and convenience store businesses, ALI is confident that having Rustan’s as a partner would create a “formidable” alliance that could effectively compete in this segment, said ALI chief finance officer Jaime Ysmael.

In a talk with reporters at the sidelines of the Securities and Exchange Commission hearing on foreign capital computation, Ysmael said ALI was now developing a new mall—Fairview Terraces—whose anchor tenant would be a department store co-owned by the Ayala-Rustan’s partnership. Typically, he said the anchor tenants in Ayala’s shopping centers would occupy about 10,000 square meters of retail space like Landmark (in Glorietta and Trinoma) or Gaisano (in Market!Market!).

“We haven’t come up with the name yet,’ Ysmael said, when asked what would be the branding for the upcoming Ayala-Rustan’s department stores. “Close to opening, that should be available,” he said. Parkview Terraces is expected to open by the end of next year.

This would not mean that ALI would no longer provide retail space to other department store operators in other upcoming malls, Ysmael said. “We will still have that kind of relationship with existing partners. It’s just that we want to put up our own so that we can move faster than that we’ll be able to do if we don’t have our own department stores. But those (other) stores will continue. They are longtime partners,” he said.

Ysmael said Rustan’s, apart from being the dominant retailer for the high-end segment, had a vast experience in the broader consumer market through its Shopwise grocery chain. “We’re confident that the partnership will be able to compete,” he said.

For the convenience store business, which is in partnership with FamilyMart and Japanese conglomerate Itochu, Ysmael said this should also be a “formidable” retail format.

The partnership is investing about P200 million to jumpstart the business. While the initial target is to set up 30 stores in the first year of operations, Ysmael said it should roll out “a couple of hundred stores to be able to make a difference.” As Ayala has hundreds of property developments across the country, Ysmael said the rollout should not be a problem.

“We’re positioning also in other areas, not just in our developments, but the priority is to locate in our developments,” he said.

http://business.inquirer.net/92476/ayala-rustans-plan-dept-store-chain

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Stock News 2012: Pepsi unit posts 208% growth in 9-month profit

Pepsi logo (2003-08). Initially, the "Pepsi" script was written across the top of the globe. In 2007 when the packaging was again redesigned, the script was moved below the globe. It was used in countries outside the US until 2010. (Photo credit: Wikipedia)

Beverage-maker Pepsi-Cola Products Philippines Inc. tripled its net profit in the first nine months as sales expanded even during the third quarter, when the country was hit by heavy monsoon rains.

PCPPI reported that its January-September net profit jumped by 208.3 percent year on year to P696 million. For the third quarter alone, net income grew by about 1 percent year on year to P119.33 million despite adverse seasonality factors.

“The third quarter of the year is typically a difficult period for the beverage industry due to seasonality. This year, it was further compounded by the heavy rains in July and August. Our notable achievements across brands and categories were driven by a better-than-expected performance in carbonated softdrinks, particularly in the cola segment,” PCPPI president Partho Chakrabarti said.

“With our top-line growth continuing to outperform industry growth for yet another quarter, we are poised to significantly exceed our full-year targets”, Chakrabarti said.

Gross sales, fueled by robust sales volume performance across brands and categories, grew by 6.5 percent year on year to P5.24 billion for the third quarter and by 13 percent to P16.56 billion year to date.

Due to higher sales volume, cost of sales rose by 6 percent in the third quarter and by 5 percent during the nine months to September compared to year-ago levels. However, as a percentage of net sales, cost of sales decreased by 6 percentage points during the nine-month period versus 2011 levels. This is attributed to the 27-percent drop in the average sugar price.

Cost of sales includes raw and packaging materials expenses, direct labor cost and manufacturing overhead.

The company’s gross profit reached P3.83 billion for the nine-month period, representing an increase of 42 percent compared to year-ago level.

PCPPI’s strong first half-year growth allowed the company to make  strategic investments in the third quarter of the year, resulting in increases in operating expenses as a percentage of net sales by 2 percentage points for the three-month period and 1 percentage point for the nine-month period from year-ago levels.

Operating expenses—consisting of selling and distribution, general and administrative, and marketing expenses—remained at manageable levels.

http://business.inquirer.net/92406/pepsi-unit-posts-208-growth-in-9-month-profit

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Stock News 2012: Lopez Holdings posts 76% profit hike

Meralco (Photo credit: Wikipedia)

Lopez Holdings Corp. reported a 76-percent jump in its nine-month net income to P6.185 billion due to affiliate First Philippine Holdings Corp.’s one-time gain from the sale of additional stake in Manila Electric Co. and from the receipt of Rockwell Land shares.

In a financial report submitted to the Philippine Stock Exchange, Lopez Holdings said earnings of associates grew 16-fold to P5.307 billion from only P305 million following FPHC’s sale of a 2.66-percent stake in Meralco in January this year amounting to PP3.34 billion.

FPH also booked an additional gain relating to its previous sale of Meralco shares, with the assignment to the FPHC group of Rockwell Land shares received as property dividends by buyer Beacon Electric.

Lopez Holdings said unaudited consolidated revenues went up 13 percent to P24.02 billion as associate ABS-CBN Corp. logged in stable numbers and implemented higher advertising rates beginning February.

Finance costs declined 13 percent to P547 million from P627 million due to lower debt levels of Lopez Holdings.   The company booked a foreign exchange gain of P178 million due to the appreciation of the peso against the dollar by end-September 2012.

ABS-CBN, meanwhile, reported a 31-percent drop in net profit during the period to P1.555 billion. Without the extraordinary gains from the sale of SkyCable PDRs last year, ABS-CBN’s net earnings would have increased by 10 percent.  Consolidated revenues climbed 13 percent to P24.02 billion as advertising revenues, which make up 60 percent of total revenues, rose eight percent  given ABS-CBN’s sustained ratings leadership and higher revenues from its Sports division and the cable channels.

Consolidated consumer sales, which accounted for 40 percent of revenues, went up 21 percent, largely attributable to SkyCable’s growth on the back of better postpaid and broadband revenues.

FPHC likewise reported a net income of P11.62 billion in the first nine months or 17 times the P637 million recorded the same period last year. It booked a P6.084 billion gain on sale from the sale of its Meralco stake.

http://www.philstar.com/business/2012/11/16/867253/lopez-holdings-posts-76-profit-hike

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Stock News 2012: Vista Land profit soars 24% to P3.23B in 9 mos

Prototype residential housing system (Photo credit: Wikipedia)

Vista Land & Lifescapes Inc., the country’s largest homebuilder, posted net earnings of P3.23 billion in the first nine months, up 24 percent from the same period in 2011, on record sales.

In a briefing yesterday, Vista Land officials said real estate revenues grew 23 percent to P12.15 billion as reservation sales hit an all-time high of P30.1 billion on robust demand for its products, particularly in the low-cost and affordable housing segment.

Manuel Paolo Villar, chief executive officer of Vista Land, said the company is on track to meet or even surpass its P4.2-billion income target this year, driven by a buoyant property market amid record low interest rates.

“We haven’t seen any signs of slowdown.  There may be some fears of slowdown in some sectors but definitely our main business, which is house and lots, is less cyclical.  I have been and continue to be very optimistic about the outlook for the property sector and I am confident that Vista Land will continue to be a dominant force in the affordable housing market,” he said.

Villar pointed out that the Camella brand remains the leader in the affordable house and lot segment and has a strong competitive advantage given its track record spanning more than 30 years.

He also noted that the company’s share price has already risen 78.95 percent so far this year, reflecting investors’ strong confidence in Vista Land and its projects.

“Based on our stock market performance, it seems investors are seeing value in the company.  People now see how solid our market is. We’re getting more coverage now.  We’ve done considerable discussions with foreign investors to enhance Vista Land’s profile.  We’re increasingly getting attention from a lot of investors,” Villar said.

Villar likewise attributed the company’s strong market performance to government’s hardline efforts to pump up infrastructure spending in the country.

Vista Land’s market capitalization now stands at P42.86 billion or more than $1 billion.

http://www.philstar.com/business/2012/11/16/867255/vista-land-profit-soars-24-p323b-9-mos

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Stock News 2012: Ayala buys FTI for P24.3B

Map of Metro Manila (Photo credit: Wikipedia)

After lying idle for years,  the sprawling Food Terminal Inc. (FTI )complex in Taguig City will soon be developed into a commercial business district.

Executives of Ayala Land Inc. (ALI) led by  chairman Fernando Zobel de Ayala on Monday agreed to purchase the 74-hectare FTI property for P24.3 billion from the government in a signing ceremony witnessed by President Aquino in Malacañang.

ALI plans to develop the FTI complex into an integrated mixed-use and business district that will feature retail, dining and entertainment.

“We hope the redevelopment of the FTI complex will lead to a surge in economic activity and increase employment in the city of Taguig and the surrounding metropolitan area,” said Karen Singson, chief privatization officer of the Privatization and Management Office (PMO).

Proceeds of the sale will be used to finance the Department of Agriculture’s agriculture and fisheries modernization program and projects of the Department of Agrarian Reform, Singson said.

“The development of what will be the next premiere CBD of Metro Manila is another milestone that we are very pleased to be embarking on,” said ALI president and CEO Antonino Aquino who signed for the company.

The PMO had set a floor price of P10.2 billion for the property. At least seven parties had expressed interest in one of the biggest industrial complexes in Metro Manila.

ALI bested the bids of Robinsons Land (P14.7 billion) and Empire East (P11 billion), the Presidential News Desk said.

Located along the South Luzon Expressway, FTI is envisioned to become a key pivotal convergence point and southern gateway to Metro Manila.

The new ALI development will showcase the largest “intermodal transport system” linking various types of transit options to facilitate commuting from various points. The planned Integrated Transport System project of the Department of Transportation and Communication will be set up adjacent to the FTI property and will be linked to the Philippine National Railway station in the area.

http://business.inquirer.net/92698/ayala-buys-fti-for-p24-3b

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Stock News 2012: Petron net profit slumps

Petron Corporation (Photo credit: Wikipedia)

Petron Corp., the country’s biggest oil refiner and retailer, registered an 88-percent drop in its consolidated net income to P932 million in the first nine months of 2012 from the P7.6 billion it posted in the same period last year.

The oil company explained that it continued to experience depressed margins because of the volatility in global oil markets in the second and third quarters of 2012. The Malaysian operation contributed only P155 million in consolidated net income for the January-to-September period, Petron said in a disclosure to the Philippine Stock Exchange on Monday.

In the third quarter alone, Petron posted a modest net income of P500 million, a turnaround from the P2.1-billion net loss it incurred for its consolidated operations in the second quarter this year.

In terms of revenue, however, Petron managed to post a 52-percent jump to P307.3 billion. Local fuel sales and exports grew by 4 percent to 35.6 million barrels, contributing P212.4 billion to the total revenue. The consolidation of Petron Malaysia beginning the second quarter likewise added 17.6 million barrels in volumes and revenues valued at P94.9 billion.

The increases in the volume of fuel products sold was attributed to Petron’s massive retail expansion program, which marked a milestone during the third quarter this year when the company’s service station network breached the 2,000 mark.

Overall, Petron said it has fortified its leadership position with 39 percent of the total market as of end-July this year.

In the case of its Malaysian operations, the company’s priority continued to be the rebranding of Esso and Mobil service stations into the Petron brand. The company aims to rebrand 550 service stations over the next few years. The new stations feature improved facilities and personalized services.

http://business.inquirer.net

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Stock News 2012: SMDC profit rises 5.7%

English: One e-CommCenter, SM Mall of Asia Complex Picture taken by Exec8 December 4, 2007 (Photo credit: Wikipedia)

SM Development Corp. (SMDC) said its earnings in the nine months to September rose 5.7 percent to P3.3 billion from a year ago.

The property arm of mall and banking tycoon Henry Sy recorded a 42.7-percent uptick in revenues from real estate sales at P16.1 billion, from P11.3 billion in the same period last year.

“SMDC’s projects have been very well received by the market because of their quality, affordability, location,” the company said in a statement.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) in the nine-month period was at P3.7 billion, resulting in an EBITDA margin of 23 percent.

Return on equity was maintained at 12 percent, SMDC said.

Majority of the units sold were from Shell Residences in the Mall of Asia Complex, Green Residences along Taft Ave. Jazz Residences in Makati, Light Residences along EDSA, Sun Residences near the Welcome Rotonda in Quezon City, and Wind Residences in Tagaytay, SMDC said.

The company scheduled the launch of five projects in the second half, equivalent to around 73,000 new residential units.

It represents a sharp increase from the 9,000 units developed in 2011. The company stands to generate about P37 billion from the sale of these units.

SMDC has set a capital spending of P20.7 billion this year, significantly higher than the P13 billion spent in 2011. Bulk of the programmed capital budget will go to the construction of ongoing and new projects while about P4 billion has been earmarked for land banking.

http://www.philstar.com/Article.aspx?articleId=867827&publicationSubCategoryId=66

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Stock News 2012: MPIC net income up 22% in Q3

Photo of Manny (Photo credit: Wikipedia)

The strong performance of all its operating units allowed Metro Pacific Investments Corp. (MPIC) to grow its earnings by more than a fifth in the third quarter.

In a statement, MPIC said its core net income, which strips out currency and derivatives-related items, gained 22 percent to P1.6 billion in July to September from P1.3 billion a year ago.

As a result, the infrastructure conglomerate reported a core profit of P5.03 billion in January to September up 27 percent from P3.95 billion last year.

“All our businesses achieved strong growth in profitability for the first nine months of the year. We are well placed for a strong 2012 as a whole,” said MPIC president and CEO Jose Ma. Lim.

“The strong results for the nine months to September reflect significant service level improvements and efficiency gains for all our operating companies,” said MPIC chairman Manuel V. Pangilinan.

Pangilinan said the company is maintaining its full-year core earnings outlook at P6.3 billion, which is 23 percent higher from P5.1 billion last year, as MPIC expects to book P1.3 billion in earnings in the fourth quarter.

In the nine-month period, MPIC’s reported net income surged 45 percent to P4.99 billion from P3.44 billion a year ago.

Consolidated revenues rose 28 percent to P20.54 billion from P16.06 billion.

“The rise in core income is mainly due to higher profit contributions from Manila Electric Co. reflecting increased volumes of power sold,” MPIC said.

Higher billed volumes were also recorded for Maynilad Water Services Inc. while Metro Pacific Tollways Corp. (MPTC) enjoyed increased traffic growth and interest and expense savings.

MPIC said the hospital group, the country’s largest private chain composed of six hospitals, benefited from investments last year.

The infrastructure firm is training its eyes overseas given its current expertise.

http://www.philstar.com/Article.aspx?articleId=867828&publicationSubCategoryId=66

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Stock News 2012: ALI earnings rise 27%

English: Venus Raj at "The GOOD Run" event in Bonifacio Global City, Taguig, Metro Manila, Philippines. (Photo credit: Wikipedia)

Property giant Ayala Land Inc. (ALI) maintained its robust earnings growth, recording close to a 30-percent uptick in January to September profits on the back of strong performance of all its business segments.

In a disclosure, to the stock exchange, ALI said its earnings in the nine-month period hit P6.62 billion, up 27 percent from P5.23 billion a year ago “on the back of the strong performance and margin improvement achieved by all of the company’s major business lines.”

Consolidated revenues jumped 20 percent to P39.01 billion from P32.63 billion last year.

Specifically, revenues from real estate and hotels, which accounted for the bulk of total revenues, climbed a fifth to P36.89 billion.

ALI said its net income margin also improved, rising to 20 percent from 18 percent year-on-year.

“We are midway into our 5-10-15 plan and we continue to progress very well, and this is reflected in our results over the first nine months of the year,” said ALI chief finance officer Jaime Ysmael.

“Average monthly sales take-up remains very robust and margin improvement is steady for all business lines,” Ysmael said.

ALI is in the thick of its so-called 5-10-15 plan, which targets P10 billion after-tax income and a return on equity of 15 percent in five years ending 2014.

Ysmael said the property firm has spent 94 percent its full-year programmed capital expenditures, with a number of projects still to be launched late this year.

ALI has earmarked P37 billion for its capital spending this year – its highest capital expenditures ever – mostly to go to residential projects, followed by shopping centers and hotels.

The property development segment, composed of the sale of residential units and industrial lots, grew its revenues 27 percent to P23.91 billion in the nine-month period from P18.8 billion a year ago.

Revenues from the residential segment reached P22.32 billion, up 27 percent from last year, driven by strong sales and continued construction of projects across all residential brands.

ALI said sales take-up in the nine-month period hit P57.85 billion, equivalent to an average monthly sales take-up of P6.43 billion, surging by half from P4.31 billion last year.

So far, ALI’s four residential brands launched a total of 13,057 units.

Revenues from the sale of commercial and industrial lots rose 26 percent to P1.59 billion in the nine-month period due to the sale commercial lots in Nuvali in Laguna and Bonifacio Global City in Taguig.

For commercial leasing, ALI said its revenues climbed19 percent to P6.34 billion from P5.33 billion recorded in same period last year.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=867832

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Stock News 2012: Huge downpayment, regulatory approvals scuttle GMA-PLDT deal

GMA Network reportedly demanded billions of pesos paid once a memorandum of understanding (MOU) is signed with the group of Manuel V. Pangilinan, whether or not the latter’s bid to acquire the private stake in the broadcasting company pushes through.

This, as well as other non-monetary demands, led Pangilinan’s group to no longer pursue its quest to purchase the over 70 percent stake held by the Gozon, Jimenez, and Duavit families in GMA, The STAR learned.

Sources revealed that the billions of pesos in fees, which is on top of the reportedly over P50 billion purchase price, was to paid after the MOA is signed and before the closure of the deal. Other requirements prior to closure include securing all the necessary government and regulatory licenses and approvals, all to be secured by the PLDT Group.

Without GMA help, securing the necessary licenses and approvals will not be easy, a source said.

It was not immediately known why the owners of GMA wanted the inclusion of the provision on the “fee” in the discussions when during the Pangilinan’s group’s first attempt to takeover GMA, there was no such demand.

Sources privy to the recently failed negotiations revealed that Pangilinan’s group felt that the owners of GMA were just not interested to sell. “This was not something an interested seller would ask for,” a highly placed source said.

When the two parties jointly announced early last month that the discussions are no longer pushing through, they said that it was not about the purchase price.

The acquisition of GMA by PLDT Beneficial Trust Fund unit Mediaquest was supposed to be part of Pangilinan’s aim for the Philippine Long Distance Telephone Co. (PLDT) to transform into a multi-media company. The group owns minority stakes in The Philippine STAR, Philippine Daily Inquirer and Business World, and controlling interests in TV5 and Cignal, a direct-to-home (DTH) satellite company.

The acquisition of GMA, STAR sources revealed, augurs well with plans of Hong Kong-based First Pacific Co., which controls PLDT, to have a regional presence in the broadcasting field.

Pangilinan earlier said he is in talks with Anthoni Salim, chairman and controlling shareholder of First Pacific, to acquire Salim’s Indonesia-based TV station.

It was also learned that First Pacific is also eyeing a TV network in Vietnam.

In 2001, PLDT engaged in talks with the owners of GMA, but negotiations bogged down over issues encountered by the prospective buyer.

“2001, if I recall correctly was P14 billion (amount being offered for GMA). It’s just that Home Cable came ahead of GMA by a few months. In 2001 and 2002, PLDT was not in good shape. If GMA came in first, I think we would have chosen GMA. But that’s fate,” Pangilinan earlier said.

http://www.philstar.com/Article.aspx?articleId=866791&publicationSubCategoryId=66

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Stock News 2012: ALI pushes P20-B entertainment complex

Makati Skyline, Philippines (Photo credit: ibarra_svd)

Property giant Ayala Land Inc. is going full throttle to transform Makati City into the nation’s premiere financial and entertainment district with the development of the Philippine Racing Club Inc.’s former race track in Sta. Ana into a P20-billion entertainment complex.

The project forms part of ALI’s P60-billion investment plan for six major districts in Makati for the next 10 years.

The property, said to be the last big piece of property in Makati, will be converted into a township with recreational, entertainment, commercial, retail, office, residential and even hotel facilities.

“We will be launching this in two weeks and will be able to give budget details then,” said Antonino T. Aquino, president of ALI.

PRCI will contribute to the joint venture its entire 21-hectare property, which used to be the site of its horse-racing operations until 2008. The property is located along the inner portion of Pasong Tamo in Makati City.

ALI, on the other hand, will undertake the development of the large-scale project, which could take 10 years to complete.

PRCI and ALI will share in the revenues to be generated from the project, which will sell residential units as well as lease out office and commercial space.

Six years ago, ALI also partnered with with Manila Jockey Club to develop the latter’s former San Lazaro racetrack area in Sta. Cruz, Manila.

ALI has been aggressively expanding its property investments, having launched several projects this year.

In Makati alone, the company has committed to invest around P60 billion in six distinct and complementary districts – Makati North (young and creative), Makati central business district (business), Ayala Triangle Gardens (urban oasis), Makati South (transport hub), and Sta.Ana (Makati’s entertainment district) covering a total of 70 hectares.    

In Quezon City, ALI will build a P65-billion new central business district hub in the North Triangle area over a 10-year period. Dubbed Ventris North, the project will include office and residential towers, commercial buildings and recreational facilities.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=866820

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