Stock News 2013: Aboitiz Power eyes 300-MW plant in Cebu

Mohave Generating Station, a 1,580 MW thermal power station near Laughlin, Nevada fuelled by coal (Photo credit: Wikipedia)

Aboitiz Power Corp. is planning to build a 300-megawatt power plant in Cebu to help address the need for additional capacity in the Visayas grid starting 2015.

The proposed power project, which may likely be coal-fed, will also expand the company’s power portfolio on the island.

According to APC president Erramon I. Aboitiz, the proposed Cebu power project was still being developed and has yet to secure board approval.

“We don’t have a timetable for that yet,” Aboitiz said.

APC has interests in several power facilities located in Cebu, including a 26-percent stake in Cebu Energy Development Corp., which owns and operates a 246-MW coal-fired plant in Toledo City.

APC also holds 50 percent of the outstanding capital stock of East Asia Utilities Corp., which operates a 50-MW bunker-fired power plant in the Mactan export processing zone on Mactan Island. It likewise owns 60 percent of the total outstanding shares of Cebu Private Power Corp., which operates a 70-MW bunker-fired plant in Cebu City under a build-operate-transfer contract to supply 62 MW to the Aboitiz Group’s Visayan Electric Co. (Veco).

The proposed 300-MW power plant of APC will help the government secure adequate supply for the Visayas grid, which will need an additional 2,000 MW by 2030 to address the growing electricity demand on the island.

Based on the Philippine Energy Plan, Visayas will need at least 100 MW of fresh capacity a year starting 2015.

The DOE has so far listed for Visayas only five committed power projects, or those projects that are firmly expected to push through as these have already complied with the necessary permits and clearances of various agencies and concerned local governments and are in the process of financial closing.

http://business.inquirer.net/107941/aboitiz-power-eyes-300-mw-plant-in-cebu

Related articles

• Stock News 2013: Ayala, Aboitiz form venture with American airport giant (investingstocksinphilippines.blogspot.com)
• Aboitiz eyes 300-MW coal plant in Cebu (rappler.com)
• Stock News 2013: Union Bank finalizes takeover of Cebu thrift bank (investingstocksinphilippines.blogspot.com)
• Power supply for election reliable (newsinfo.inquirer.net)
• Aboitiz: We're afraid to compete with Napocor (rappler.com)
• Stock News 2013: P10B project in Lapu-Lapu (investingstocksinphilippines.blogspot.com)
• Aboitiz Power to sign loan deals for $1.82B projects (business.inquirer.net)
• Optimind Technology Solutions-SEO Company Philippines-Performs A Double-Launch: New Website Launch Coincides With Opening Of New Cebu City Sales Center (prweb.com)
• Aboitiz Power eyes 300-MW plant in Cebu (business.inquirer.net)

Stock News 2013: EastWest doubles branch network in 2012

Visayas, Philippines (Photo credit: Andy*Enero)

Gotianun-led East West Banking Corp. doubled its branches to 245 last year from 122 in 2011 amid aggressive expansion efforts, the bank said in a disclosure Wednesday.

The bank opened 123 new stores in 2012 in various locations in Metro Manila, Luzon, Visayas and Mindanao.

"EastWest's commitment to its shareholders was to open new stores around the country at a rapid pace, which it has fervently pursued," the bank said.

"The bank plans to continue with its store expansion and grow its network to at least 350 by 2014."

EastWest saw its net income grow by 12% to P1.36 billion in the nine months to September last year from the same period in 2011, buoyed by trading gains and profits from lending.

http://www.abs-cbnnews.com/business/01/02/13/eastwest-doubles-branch-network-2012

Related articles

• Stock News 2012: Malaysian gaming firm threatens to sue PCSO (investingstocksinphilippines.blogspot.com)
• East West Bank sells P1.5B in deposit notes (business.inquirer.net)
• Tripura opposes direct cash transfer (vancouverdesi.com)
• Filipinos consider good health, money the best gifts for Christmas - SWS (newsinfo.inquirer.net)
• Most Filipinos hopeful for 2013 (rappler.com)
• Signal No.1 up over Visayas, Mindanao (newsinfo.inquirer.net)
• Potential cyclone enters Philippines (newsinfo.inquirer.net)
• Aquino ratings dip in all areas, all classes - SWS (rappler.com)
• East West Bank consolidating two Houston branches, wants to acquire (bizjournals.com)
• GoBankingRates.com Investigates Whether Savings Account Interest Rates Will Finally Rise in 2013 in New Report (prweb.com)

Stock News 2012: Malaysian gaming firm threatens to sue PCSO

Philippine Gaming Management Corp. (PGMC), the local gaming unit of Malaysian conglomerate Berjaya, has accused the state-run Philippine Charity Sweepstakes Office (PCSO) of working relentlessly to bring down the Malaysian-led company.

PGMC legal counsel Jose Bernas accused the PCSO management of favoring a rival local lottery equipment provider at PGMC’s expense.

Bernas cited in particular the PCSO move to allow rival Pacific Online Systems Corp. to enter what it deems to be PGMC’s “exclusive” Luzon territory without any bidding being conducted.

He said the PCSO has been “relentless in its efforts to bring PGMC down, demanding [that we] reduce the rental rates on the lotto equipment we provided PCSO by as much as 50 percent, but giving Pacific Online, our competitor, better deals at our expense.”

All-out legal battle

In such a situation, PGMC said the Bejaya unit was ready to go on an “all-out” legal battle against the government agency.

Bernas accused the PCSO, led by chair Margarita Juico, of putting “in jeopardy” the Malaysian group’s investments through various “illegal measures.”

“We have all the documents to prove our allegations and we are now prepared to go all-out to expose what PCSO has been doing against a foreign investor and its local shareholders. We are doing this after exhausting all means to resolve these issues with the present PCSO,” he said.

PCSO general manager Ferdinand Rojas II explained that the reduction of the rental rates was based on a directive from the Senate blue ribbon committee.

On the “exclusivity” debate, he said the PCSO had its own position on the matter but would leave it to the courts to decide the case.  As the case is now pending in court, he said a discussion on its merits would be sub judice.

Last October, PGMC  filed a court petition to cite the PCSO in contempt for disregarding a writ of preliminary injunction issued in relation to a dispute on lottery operations in Luzon.

An injunction is an extraordinary remedy reserved for special circumstances in which the temporary preservation of the status quo is necessary.

Favored firm

PGMC is wholly owned by listed holding company Berjaya Phils., a unit of Malaysia’s Berjaya Group.

Pacific Online, the company that Bernas accused the PCSO of favoring, is led by businessman Willy Ocier and is the lottery equipment provider for the Visayas-Mindanao territory.

PGMC said that in 1993, it won the bidding for the entire Philippines to provide PCSO with lottery equipment. However, it said the government decided to award the Visayas-Mindanao territory to the losing bidder, now known as Pacific Online. PGMC was given only Luzon as its exclusive territory.

It noted that PGMC’s current contract with PCSO will end in August 2015 while Pacific Online’s contract will expire in March 2013.

Since Pacific Online has been allowed to install at least 600 terminals in Luzon since June, Bernas said the PCSO has effectively awarded Luzon, PGMC’s exclusive area, to Pacific Online and extended the latter’s contract without any bidding.

http://business.inquirer.net/98813/malaysian-gaming-firm-threatens-to-sue-pcso

Related articles

• Makati court asked to cite PCSO officials for contempt (business.inquirer.net)
• PCSO disputes PGMC lotto exclusivity claim in Luzon (business.inquirer.net)
• Japan Loto 6 winning numbers drawn (examiner.com)
• Former PCSO exec in P366M plunder case fails to yield despite arrest warrant (newsinfo.inquirer.net)
• Court told of Arroyo hand in PCSO fund diversion (newsinfo.inquirer.net)
• Ex-PCSO GM spent P338M more than was allowed (newsinfo.inquirer.net)
• Sandiganbayan pressed to cancel passports of ex-PCSO execs (globalnation.inquirer.net)
• Storm signal #1 over 18 provinces (rappler.com)
• Sendong victims get free houses in ‘Berjaya Village’ (globalnation.inquirer.net)
• Super Typhoon Pablo: Pablo now threatening Northern Luzon (cebuislandlive.com)

Stock News 2012: GT Cap power unit mulls IPO

English: Coal-fired power plant near Herakleion, Crete Deutsch: Kohlekraftwerk bei Heraklion, Kreta (Photo credit: Wikipedia)
Two power industry players – a power generator and a transmission service provider – are looking to sell shares to the public as early as next year, company executives said.

The public offering of tycoon George S.K. Ty’s Global Business Power Corp. (GBPC) and a subsidiary of the National Grid Corp. of the Philippines (NGCP) in the local bourse are hinged on expansion plans and completion of existing deals.

“Maybe sometime next year if the market situation warrants it,” GBPC president Arthur Aguilar told reporters.

“As you know we went through a due diligence with (parent company) GT Capital Holdings Inc. We got the governance systems set up already for the public listing,” Aguilar said.

In April, GT Capital went public after a P21.5-billion initial public offering (IPO).

“By [next year] we will have an expansion program that is quite clear already. We are now just formulating it,” Aguilar said.

For instance, the company is still conducting a study for a third coal-fired power plant in Iloilo given increasing demand in the province.

Subsidiary Panay Energy Development Corp. will lead the construction of an 82-megawatt (MW) power plant worth P10 billion.

Furthermore, Aguilar said the firm in looking to expand in electricity-starved Mindanao.

“It is an area of interest and you know they need power there,” Aguilar said, adding that Mindanao needs another 300-400 MW in the next three years.

Late last month, GBPC subsidiary Toledo Power Co. said it will build another 82 MW coal-fired power plant in Cebu that will cater to the mining operations of Carmen Copper Corp.

GBPC is already close to the grid cap in the Visayas given its 633-MW capacity.

“We got to go elsewhere. We still have room for one or two more plants.After that, that is it,” Aguilar said, adding that Luzon is not an option due to big players in the area.

Meanwhile, the NGCP is looking to sell shares to the public as compliance to the requirements of Republic Act 9511 of 2008 that granted the transmission franchise to the company.

“It can be the subsidiary who will do the IPO for NGCP. It does not have to be NGCP directly,” said Joseph Ferdinand Dechavez, senior adviser to NGCP president Henry Sy Jr.

“We are doing it because we have to comply with the requirements of the franchise,” Dechavez said.

Under the law, the country’s sole transmission provider should sell at least 20 percent of its shares to the public within 10 years from the commencement of its operations.

http://www.philstar.com/Article.aspx?articleId=827894&publicationSubCategoryId=66

Related articles

• Reserve power offered to Mindanao, but cost turns off users (newsinfo.inquirer.net)
• NGCP wins TRO against Capitol (newsinfo.inquirer.net)
• Group says conspiracy behind Mindanao power shortage, calls for congressional probe (mindanews.com)
• Red alert for Mindanao power status (mindanews.com)
• Metro Manila power supply normalizes after interruptions (newsinfo.inquirer.net)
• GenSan power situation improves (mindanews.com)
• Solon wants probe on impending power rate hike (business.inquirer.net)
• Where's the renewable energy? (eco-business.com)

Stock News 2012: Puregold finalizes S&R deal

Front of Puregold Dau taken from an angle. (Photo credit: Wikipedia)Puregold Price Club Inc. has completed the acquisition of 100 percent of S&R Membership Shopping club through a P16.5-billion share swap, effectively making the upscale retailer a wholly-owned Puregold subsidiary.

In a disclosure to the Philippine Stock Exchange, Puregold said Kareila Management Inc., the operator of S&R, has already issued the stock certificates in the name of Puregold.

Under the deal, Puregold acquired 1.7 million shares of Kareilla in exchange for 766.4 million shares of Puregold. Both firms are controlled by Chinese-Filipino businessman Lucio Co.

The Co family now owns 77 percent of Puregold’s outstanding shares.

The acquisition has allowed Co to consolidate his retailing businesses into a publicly-listed vehicle targeting all market segments and further strengthened the group’s leading position in the industry.

Puregold caters to the lower-income segment with a market share of 16 percent. On the other hand, S&R, which caters to the middle and upper class consumers, has a market share of 3.3 percent.

S&R has a total membership base of over 214,700 across the country. It operates six stores located in Bonifacio Global City, Congressional Ave. in Quezon City; Alabang, Muntinlupa; Aseana business park in Baclaran; San Fernando in Pampanga; and Mandaue City in Cebu.

Established in 2000 in partnership with Price Smart of the US, S&R was eventually acquired by the Co family in 2006.

To capitalize on the growing consumer needs of the mass market, Puregold recently acquired the Parco supermarket chain in a deal valued at around P760 million. The deal involved the purchse of 100 percent of the Gant Group of Companies, the holding company of the Ong family for the six subsidiaries operating the 19 branches of Parco supermarkets.

Of Parco’s total store network, 12 are located in Metro Manila, three in Bulacan and four in Rizal.

The purchase was in line with the Co family’s goal to double the number of its stores by 2015 as it expands into the untapped markets Metro Manila as well as in Visayas and Mindanao.

Puregold, which is now the country’s second biggest retailer next to the SM Group, intends to open 25 stores in 2012 and 2013.

http://www.philstar.com/Article.aspx?articleId=824059&publicationSubCategoryId=66

Related articles

• Puregold seeks SEC approval of deal to buy S&R (business.inquirer.net)
• BDO Bank, First Philippine, Puregold: Philippine Equity Preview - Bloomberg (bloomberg.com)
• PSEi sets new record at 5,365 (business.inquirer.net)
• Belle, PAL Holdings, SM Investments: Philippine Equity Preview - Bloomberg (bloomberg.com)
• The Philippines' 40 Richest (Forbes) (cpaccountant.wordpress.com)
• PSEi slides below 4,900 in bloodbath (business.inquirer.net)
• Philex, Puregold Price, San Miguel: Philippine Stocks Preview - Bloomberg (bloomberg.com)
• BIR files tax raps vs trader, CPA (newsinfo.inquirer.net)
• Mang Inasal owner, Aboitizes among country's billionaires (newsinfo.inquirer.net)

Stock News 2011: Camella: At the heart of progress in Visayas

Image via Wikipedia
Grounded in rich traditions, Visayas is making its mark as a hub of development.

Multinational corporations are turning to the region for expansion of operations, making it a growing economic center with Old World charm. At the heart of this progress is Camella which continues to provide affordable housing in a style befitting a modernizing region.

Long before the arrival of international investors, the region has been identified by the housing developer as a growth area and has established its presence through various developments.

Today, the developer continues its expansion as the region welcomes more businesses.

"Camella has always been a partner in making the Filipino dream a reality. But we do not merely build homes, we build communities. Our presence in the Visayas has enabled the region to offer an affordable but quality standard of living for its growing upwardly mobile residents. Investors are able to come here and set up shop because they know that their employees and their families would have a place that they could call home – one that is safe, secure and nurturing of their families’ needs," said Jerylle Luz Quismundo, president.

With the increase in the demand for affordable homes and practical investment options, Camella has opened two new communities that offer outstanding value, contemporary home design and proximity to major thoroughfares, malls, schools, hospitals and business areas.

http://www.mb.com.ph/node/303523/camella-at-heart-progre

Stock News 2010: Phoenix Petroleum slates P1.5-B expansion

Image via Wikipedia
Publicly-listed Phoenix Petroleum Philippines Inc. has earmarked P1.5 billion capital expenditures (capex) for next year, mainly to bankroll its expansion projects.

It was gathered from company officials that this will fund the company’s pipelined retail portfolio expansion and the construction of additional depots in Bacolod and Cagayan de Oro.

The company said it will concentrate shoring up its handling facilities in Visayas and Mindanao; while Luzon may yet be at standstill because its Calaca depot’s capacity at 50 million liters can already be classified “immense” and will be enough to supply its expanding market in Luzon.

As far as the targeted number of stations in Luzon is concerned, the company has not given any specific number but it indicated that expansions will be done in various parts of the country.

In a disclosure to the Philippine Stock Exchange (PSE), the oil firm said this (capex) will be allotted for the “expansion of the company’s operations such as but not limited to retail network and depot facilities as well as supply operations.”

http://www.mb.com.ph/node/291341/phoenix-petroleum-