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Showing posts with label Philippine National Bank. Show all posts
Showing posts with label Philippine National Bank. Show all posts

Sunday, June 2, 2013

Stock News 2013: PAL won’t be folded into LT Group

PAL Express
PAL Express (Photo credit: Wikipedia)
Flagship carrier Philippine Airlines (PAL) will no longer be consolidated into the listed umbrella firm of beer and tobacco magnate Lucio Tan as it focuses on being a consumer-related conglomerate.

“We’re not putting it in. PAL will not be part of the LT Group. It’s part of the family holdings but not the LT Group,” Michael G. Tan, president of LT Group, told reporters.

Tan said PAL as an aviation company is different from the basket of consumer-related businesses held by LT Group.

“Essentially, we are focused on being a consumer firm,” said LT Group chief financial officer Jose Gabriel D. Olives.

In October, LT Group’s board of directors approved the deferment of the acquisition of the aviation unit. Concerns were raised over the negative effect of loss-making PAL in LT Group’s books.

LT Group, formerly Tanduay Holdings Inc., earlier planned to acquire 49.84 percent and 50.97 percent of Philippine Airlines Inc. and Air Philippines Corp. (now PAL Express), respectively.

Tan said PAL will not be consolidated into the conglomerate even it if becomes profitable already.

In the nine months of its fiscal year ending March 2012, the airline’s parent firm PAL Holdings Inc. trimmed its losses by 24 percent to P2.74 billion compared with P3.59 billion as total revenues climbed by 2.4 percent to P55.68 billion from P54.38 billion on the back of higher revenues from its passenger and cargo businesses.

PAL, which is 49-percent owned by diversified conglomerate San Miguel Corp., is embarking an expansion program as it plans to further widen its global footprint to include the Middle East, Europe and Australia. It plans to acquire up to 100 brand new aircraft in line with its bid to reclaim the top slot in the local airline sector.

The decision not to include PAL in the listed holding firm was finalized last year, Olives said.

LT Group, which completed its consolidation program last year, is into beer (Asia Brewery Inc.), distillery (Tanduay Distillers Inc.), real estate (Eton Properties Philippines Inc.), banking (Philippine National Bank) and tobacco (PMFTC Inc.).

Moving forward, LT Group expects to continue being a beneficiary of strong consumer spending.

“I would think in the next couple of years it will be like that,” Olives said.

“We should obviously take advantage and grow our businesses in the consumer segment,” Olives said, adding that its units will offer new products to increase its market reach.

LT Group grew its profits by a third to P3.8 billion in the first quarter. Revenues picked up 14 percent to P17.7 billion “due to higher revenues from banking, distilled spirits and property development, which offset the revenue drop in the beverage and tobacco sectors,” LT Group said.

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Sunday, December 16, 2012

Stock News 2012: BDO Keen On PNB Acquisition

Philippine National Bank
Philippine National Bank (Photo credit: Wikipedia)

The SM group of companies is making a bid for the acquisition of a stake in Philippine National Bank and its possible merger with BDO Unibank Inc. as talks between PNB and Bank of the Philippine Islands remained inconclusive.

In an interview SM Investments Corporation chief finance officer Jose Sio said they are in discussions with PNB’s principal shareholder Lucio Tan for a possible investment in PNB.

“We are always interested in making investments for as long as it will help us grow,” Sio said adding that BDO chairperson Tessie Sy has a good relationship with Tan.

However, Sio laughed off market talk that BDO has offered to acquire a stake in PNB at R150 per share. “Well I heard market talk saying we offered R200 per share,” he countered. PNB last traded at R92.70 per share.

Sio said the price will have to be determined after they look into the quality of PNB’s assets although he noted that the bank has a good land bank of prime properties. The SM group is also in real estate, particularly malls and residential buildings.

Bank of the Philippine Islands and PNB have earlier asked the Philippine Stock Exchange to suspend the trading of their shares as they disclosed that their principals are in discussion for a possible merger.

However, the banks eventually asked the PSE to lift the trading suspension since no deal has been made.

It was reported that PNB may have received counter-offers from other banks since a merger between BPI and PNB may translate to market leadership, dislodging BDO as the top bank and Metrobank as the second largest lender in the country.

Analysts had said that a merger between BPI and PNB would have triggered a new wave of merger and acquisitions (M&As) in the local banking industry.

Once a merger between BDO and PNB pushes through, this would further cement BDO’s position as the country’s biggest bank.

COL Financial research head April Tan Lee noted that, in the 1990s, there was a wave of M&As after Equitable Bank merged with PCI Bank.

“I think what happened was that Metrobank bought all these banks afterwards to maintain its number one position,” Lee said adding that, “The question today is, will that trigger more consolidation from big names because they want to maintain their lead?”

http://www.mb.com.ph/articles/385912/bdo-keen-on-pnb-acquisition#.UMKFQuSmj3w

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Monday, November 26, 2012

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

Philippine National Bank
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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