The Gokongweis’ P30.32-B paper wealth in JG Summit



THE board of Robinsons Retail Holdings Inc. (RRHI), which belongs to the group of companies of businessman John Gokongwei Jr. and his family, approved on June 10 the payment P0.63 per share dividend. In a filing, the company said all stockholders as of June 29 will be entitled to the dividend which will be paid on July 25.

Robinsons Retail has 1.385 billion outstanding common shares. At P0.63 per share, the dividend will reduce the company’s retained earnings by P872.55 million.

As of March 31, Robinsons Retail reported in a consolidated financial filing P16.472-billion retained earnings of which it classified P12.997 as “appropriated” and P3.474 billion as “unappropriated.” Being consolidated, RRHI’s retained earnings included P21.56 billion of subsidiaries.

P58-per share IPO
As owners, the Gokongweis bought their RRHI shares at P1 par value on July 23, 2013 but raised P28.115 billion by offering to the public 484.75 million shares at P58 per share in November 2013. The public participation in the initial public offering (IPO) resulted in an additional paid-in capital of P27.631 billion.

Robinsons Retail eventually bought back 18.872 million of its own shares for which it incurred a “transaction cost” of P745.65 million that it charged against the APIC contributed by the public.

As of March 31, the company reported a surplus of P27.227 billion from which it sourced P2.25 billion appropriated in 2015 “to augment new stores with the group’s nationwide expansion within two years.”

Robinsons Retail opened trading on Friday at P80.10, hit a high of P80.20 and fell to a low of P79.60. It closed the session at P79.75. It hit a 30-day high of P82.95 and dropped to a month’s low of P74.50.

Insiders’ holdings
A public ownership report listed JE Holdings Inc. as RRHI’s single biggest stockholder with 484.75 million shares or 35 percent. When the stock closed at P79.75 on Friday, the company reflected a paper wealth of P38.659 billion.

Of the 11 members of the board of Robinsons Retail, three are outsiders who hold one RRHI share each. Businessman John Gokongwei Jr. and Hope Y. Gokongwei-Tang also own one RRHI share each.

The other family members led by James L. Go, Mr. Gokongwei’s younger brother, are significant stockholders, who own a total of 380.182 million RRHI shares or 27.45 percent. Aside from Go, who holds 41.55 million RRHI shares, the others include Lance Gokongwei, 126.727 million; Lance or Elizabeth, 35.317 million; Robina Y. Gokongwei-Pe, 105.952 million; Liza Y. Gokongwei-Cheng and Faith Y. Gokongwei-Lim,.35.317 million each.

At P79.75 per share, the family-owned 380.182 million RRHI shares have a market value of P30.32 billion.

Cebu Air Inc., the airline company of the Gokongwei group, listed in a general information sheet (GIS) 94 stockholders including a French and a Singaporean with 390 shares and one share, respectively.

GIS refers to a document filed with the Securities and Exchange Commission. It identifies a company’s stockholders including PCD Nominee Corp.

In the case of Cebu Air, it said in its GIS it has three foreign stockholders including PCD Nominee, which it classified as “non-Filipino,” but which holds as record stockholder for the beneficial owners of 77.295 million shares.

The same GIS listed CPAir Holdings In. as the airline’s majority stockholder with 400.817 million shares, or 66.15 percent. PCD Nominee holds 120.758 million shares or 19.93 percent for Filipinos. JG Summit owns 8.595 million shares or 1.09 percent.

GMA7 stockholders
GMA Network Inc. owns and operates Channel 7 and radio station DZBB. It has an authorized capital stock of 12.5 billion shares divided into 5 billion common shares with par value of P1, and 7.5 billion preferred shares with par value of P0.20. In peso terms, GMA Network is capitalized at P6.5 billion.

Of GMA 7’s authorized capital stock, 1,959 stockholders own 3.361 billion shares while 37 stockholders hold 7.5 billion preferred shares.

Among the network’s stockholders, GMA Holdings Inc. owns 845.827 million common shares or 25.166 percent and 7.79 percent of 10.861 billion outstanding shares.

The other stockholders of the network are Group Management & Development Inc., 789.813 million common shares and 2.626 billion preferred shares for a total of 3.416 billion shares or 31.452 percent; Flag Management & Development Corp., 676.518 million common shares and 2.182 billion preferred shares for a total of 2.858 billion shares or 26.314 percent; M.A. Jimenez Enterprises Inc., 453.882 million common shares and 1.509 billion preferred shares for a total of 1.963 billion shares or 18.074 percent; and Television International Corp., 334.378 million common shares and 1.112 billion preferred shares for a total of 1.446 billion shares or 13.314 percent.

Retained earnings
GMA Network reported consolidated retained earnings of P2.897 billion as of March 31, a huge 53.118 percent increase from P1.892 billion as of Dec. 31, 2015. Its profitability resulted from net sales which rose by 2.894 percent in the first quarter of 2016 to P3.903 billion from P3.006 billion in the same period in 2015.

Despite a slight increase in net sales, GMA Network’s net income in the first three months increased by 148.337 percent to P1.013 billion from P407.914 million in the first quarter of 2015.

With its huge profit that enabled it to pile up retained earnings of close to P3 billion, GMA Network raised by 23.519 percent the salaries and short-term benefits of “key management personnel” to P77.965 million from P63.12 million. The company also declared a dividend of P0.40 per common share which it paid on May 16.

On June 17, GMA Network opened trading at P6.32, peaked at P6.35, dropped to a session’s low of P6.30 but closed higher at P6.35.


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