Aboitiz taps P9.6-B treasury shares to raise funds

Emeterio Sd. Perez

Emeterio Sd. Perez

Computed at Friday’s closing price of P708 per share, his newly acquired AC shares have a market value of P31.5 million, giving Ablaza a paper gain of P19.8 million.

On Sept. 3, 2014, Arthur R. Tan, also an AC senior managing director, sold 4,000 of his ESOP shares at P710 for gross proceeds of P2.8 million. If he had acquired said AC shares at P264.06, he would have paid P1.06 million for those shares, giving him a paper gain of P1.8 million.

MVP’s P100-M FAMILY TRUST. A filing tends to show that Manuel V. Pangilinan, chairman of the board of Metro Pacific Investments Corp., has sold his entire stake of 21.3 million MPIC shares in the listed holding company at P5.25 each.

In a “statement of changes in beneficial ownership of securities” dated July 31, 2014 and posted on the same day on the website of the Philippine Stock Exchange, Pangilinan reported his sale of said MPIC shares on July 8, 2014.

In filing the ownership report, Pangilinan was only complying with the market’s full disclosure rule, although he did not actually sell his MPIC shares. In an explanatory note, Melody M. del Rosario, MPIC vice president for PR and corporate communications, said Pangilinan’s MPIC shares “have been transferred to a family trust.” She did not identify the trust. At the “transfer price” of P5.25 per share, Pangilinan gave away P112 million of his wealth.

MORE CASH. Aboitiz Equity Ventures Inc. (AEV), the listed holding company of the Aboitiz family, has cash and cash equivalents worth P31 billion, representing 51.1 percent of its total current assets of P60.6 billion. It also had retained earnings of P86.1 billion as of June 30, 2014.

Despite this financial wealth, AEV has been selling its treasury shares. At AEV’s closing price of P55.55 on Friday, the company’s treasury shares had a market value of P9.6 billion. From January until Friday last week, AEV has already sold 16.7 million treasury shares.

A recent filing showed that AEV sold 5.9 million treasury shares at P55.25 each, for total proceeds of P328.8 million, on Sept. 2, 2014. On Aug. 29, it sold 10.7 million treasury shares, also at P55.25 each, from which it grossed P594.3 million.

PAYING OFF. On July 25, 2011, SM Investments Corp. (SMIC) made an initial investment of $142.2 million, then equivalent to nearly P6 billion, in Atlas Mining and Development Corp. The resulting 17.9 percent ownership entitled the Sy-owned SMIC to three representatives on the board.

Three years later, SMIC had dramatically increased its holdings in Atlas such that, as of July 17, 2014, it owned 602.8 million SMIC shares or 29 percent. Computed based on Atlas’ 2.077 billion outstanding shares as of Friday last week, SMIC’s present holdings represent 29 percent.

At P15.96 per share, which was Atlas’ closing price on Friday, SMIC’s 602.8 million shares had a market value of P9.62 billion.

OWNERSHIP PROFILE. Alliance Select Foods International Inc. listed the public as owners of 629.3 million shares, or 42 percent, of 1.5 billion issued shares minus 287,537 treasury shares.

In an ownership filing, Alliance Select said its four principal stockholders hold a total of 858.2 million shares, or 57.2 percent. These are Strongoak Inc., with 430.3 million shares, or 28.7 percent; Harvest All Investment Ltd., with 177.3 million shares, or 11.8 percent; Victory Fund Ltd., with 138.5 million shares, or 9.2 percent; and Mingjing Holdings Inc., with 112.2 million shares, or 7.5 percent.

Ironically, while these four corporate stockholders control the majority voting stocks of Alliance Select, they have only one representative, Hedy S. C. Yap-Chua, to the seven-man board as posted on the PSE website. Apparently, George E. Sycip, chairman, and Jonathan Dee, director, and their five Filipino nominees control the board despite their being minority owners

Incidentally, the group of Sycip, an American citizen like his father, Washington Sycip, and his allies may not even be considered significant stockholders based on the following computations: If the 57.2 percent ownership of foreigners, except that of Sycip, and the public’s 42 percent, are added, the sum would be 99.2 percent. How many shares do Sycip and company own to even qualify them for board directorship?



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