Listed and public. LT Group Inc. (LTG), the listed flagship of businessman Lucio Tan, grossed P37.72 billion from the sale of 1.84 billion shares at P20.50 per share. The shares were sold to outsiders to make LTG both listed and public.
This was how LTG implemented the transaction: Tan-owned Tangent Holdings Inc. sold LTG shares in two tranches: 1.60 billion shares, through investment banks such as UBS AG HK branch, Credit Suisse-Singapore, Deutsche Bank AG-HK and J.P Morgan Securities Plc. Then, it sold 250 million shares at the same price to UBS AG as “over-allotment option.”
Tangent regained its previous LTG holdings equivalent to 8.046 billion shares, or 74.36 percent by acquiring 1.84 billion shares, the same number of shares it sold, from LTG’s unissued shares.
The public investors who bought LTG shares at P20.50 each are lucky. The stock has been going up, even hitting a 30-day high of P28.40 on May 6, which put investors ahead by P7.90 per share, or 27.817 percent.
Insiders’ trades. Available postings on the website of the Philippine Stock Exchange do not show any insiders having benefited from fall in the share prices and eventual recovery of Pepsi-Cola Products Philippines Inc.
Only Platinum Investment Management Ltd. of Australia reported its sale of Pepsi-Cola shares in 2012: 6.189 million shares at P2.79 each on July 4; 455,000 shares at P2.78 each on July 5; 2.225 million shares at P2.80 each on July 6; 1 million shares at P2.79 to P2.82 each on July 10, 13 and 16; 2 million shares each at P2.78 on July 12; and 1.045 million shares at P2.84 each on July 17.
With its disposition of Pepsi-Cola shares in 2012, Platinum missed the market’s climb and Pepsi-Cola’s rise to over P6 per share, thereby making it “lose” up to P4 a share.
At Metro Pacific Investments Corp., Victorico P. Vargas, executive director, sold one million MPIC shares at various prices on May 16: 140,200 shares at P6.12 each; 698,400 shares at P6.11 each; and 161,400 shares at P6.10 each. After the sale, he still owned three million shares.
Surging stock. Pepsi-Cola has been going up as the stock market continues surging. It climbed to a high of P6.88 and recorded a low of P5.85 in the first quarter of 2013.
In 2011, Pepsi-Cola fell to a low of P2.06 in the first quarter; traded at P2.56 high and P2.21 low in the second quarter; recorded a high of P2.22 and plunged to P1.96 in the third quarter; recovered at P2.50 but dropped to P2.10 in the fourth quarter.
In 2012, it hit P3 high but fell to P2.06 in the first quarter; fell to P2.89 and P2.50 in the second quarter; rebounded to P4.11 but again dropped to P2.72 in the third quarter; and finally peaked at P6.61 despite falling to a low of P4 in the third quarter.
In the latest market report last week, Pepsi-Cola hit a 30-dayhigh of P6.65 and a month’s low of P6.02.
Multinational team. In view of the stock’s recent performance, the public investors may want to know who to blame in case of the share price’s sudden fall. Here they are:
Only the two independent directors of the nine-man board of Pepsi-Cola Products Philippines Inc. are Filipinos: Rafael Alunan 3rd, a member of the boards of other companies, one of them Sunlife of Canada and Grepalife Asset Management Corp.; and Oscar Reyes, president of Manila Electric Co., have been with the board since 2007. Each of them receives $1,500 for each meeting they attend.
The rest of the members of Pepsi-Cola’s board are foreigners, four of them Koreans, two Indians and one Pakistani. They, along with Alunan and Reyes, are nominees for reelection when the company holds its annual stockholders’ meeting at 10 a.m. on May 31 at the Palms Country Club in Alabang, Muntinlupa City.
Even Pepsi-Cola’s executives are multinational with the positions of chief executive officer and president held by a Korean and an Indian, respectively. The third foreigner in the team is a Pakistani, who is the senior executive vice president and chief financial officer. All three have been holding the posts since 2012.
Pirated execs. Like other multinational companies operating in the Philippines, Pepsi-Cola also hires local talents. They are: Daniel Gregorio Jr., a former systems analyst at Coca-Cola Bottling Philippines Inc., the oldest at 61, senior vice president (SVP) for manufacturing and logistics since 1998; Celerino Grecia 3rd, has been with the company for 29 years, SVP for human resources/legal, since 2011; Juan Gabriel Sison, formerly with Century Pacific Group, executive vice president for sales, since 2011; Samuel Dalisay Jr., connected with Jollibee Foods Corp. for 14 years, vice president (VP) for supply chain, since 2011; Angelina Dalupan, communications director of Pfizer Philippines, VP for corporate affairs and communication, since 2012; and Ma. Rosario Nava, corporate secretary and compliance officer, since 2007, the same post she held at Solectron Philippines Inc., and director of Hewlett Packard Philippines Inc.