• The other Tan’s P221-B paper wealth

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    Emeterio Sd. Perez

    Emeterio Sd. Perez

    WHEN one mentions Tan, he or she would most likely refer to businessman Lucio Tan and would associate him with Foremost Farms, Asia Brewery Inc., Allied Bank and Philippine National Bank. The later generation knew Tan as the businessman who brewed a beer brand that competed with San Miguel Pale Pilsen of San Miguel Corp. (SMC).Things have dramatically changed.

    The stockholders of SMC and Tan are now partners in Philippine Airlines Inc. although not directly. SMC had bought into PAL Holdings Inc. thru its majority stockholder Trustmark Holdings Inc. PAL the airlines is a subsidiary of PAL Holdings. Today, there is a new Tan in town who does not even own a beer brand or an airline. But he controls a number of businesses which he has placed under two holding companies—Megaworld Corp. and Alliance Global Group Inc.—that have made him multibillionaire many times over. When one controls a group of companies, imagine the benefits that accrue to him as the majority owner, who would accumulate the dividends due him or her in bank accounts. Meanwhile, he or she would live in luxury with his or her salaries as chairman/person of the board. And the compensation could amount to millions of pesos. This piece is about the other Tan. Hopefully someday, “other” could be dropped in identifying him.

    P0.38 dividend. Stockholders as of September 9 owning 10.27 billion outstanding common shares in Alliance Global Inc. (AGI) will receive on September 24 dividend of P0.38 per share. The total dividend of P3.90 billion will reduce AGI’s unappropriated retained earnings of P48.8 billion as of June 30, 2013 to P44.9 billion. AGI also had P1.4 billion appropriated retained earnings bringing the total to P50.2 billion. The P0.38 per share dividend is equivalent to 38 percent of P1 par value of AGI’s common shares but 1.3 percent of the stock’s 30-day high of P28.30 and 1.6 percent of 30-day low of P23.75.

    Hoarding. At the rate AGI, which is controlled by businessman Andrew L. Tan, is declaring very small dividend, the company may end up hoarding its annual profits. In 2012, AGI’s net profit climbed 39 percent to P20.5 billion from P14.7 billion in 2011. In 2010, it reported net profit of P9.5 billion. That’s a total of P44.7 billion in three years! These profits resulted from revenues which soared 55.4 percent to P102.7 billion in 2012 from P66.1 billion in 2011. In 2011, AGI’s revenues totaled P44.5 billion.

    Billionaire Tan. As the majority stockholder of Alliance Global, businessman Andrew Tan directly owns 341.7 million shares, or 3.3 percent. With these directly owned shares alone, he is entitled to receive P129.8 million. Tan also owns AGI’s two corporate stockholders. The Andresons Group Inc. and Yorkshire Holdings Inc. hold 3.9 billion shares and 1.6 billion shares, respectively. With their total holdings of 5.5 billion shares, the two companies would get a P2.1-billion dividend. To sum up: Including the holdings of AGI affiliates, Tan controls 5.8 billion shares, or 56.4 percent, for a total dividend of P2.2 billion.

    Market value. How rich is businessman Andrew L. Tan in paper? The answer: Based on his holdings in four listed companies, his paper wealth has reached P221 billion, or $5 billion. Tan’s holdings of 5.8 billion shares, or 56.4 percent in AGI have a market value of P164.1 billion computed on the stock’s 30-day high of P28.3 and P137.7 billion at a 30-day low of P23.75.In Megaworld Corp., he controls 13.1 million shares, or 44.7 percent. These are worth P46.9 billion at a 30-day high of P3.57, and P39.8 billion at a 30-day low of P3.03. Tan owns 837.6 million shares in Suntrust Home Developers Inc. with market value of P2 billion at a 30-day high P2.40 and P39.8 billion at 30-day low of P0.57.

    GERI alliance. Unlike Alliance Global and Megaworld, Global Estate Resort Inc. (GERI) did not originally belong to the group of companies controlled by businessman Andrew L. Tan. But Tan ended up GERI’s majority stockholder after he took over one of the Sobrepena-owned Fil-Estate companies a few years ago thru AGI, which controls 5.4 billion GERI shares, or 63.7 percent. Since Tan controls 56.4 percent of AGI, he effectively owns 4.7 billion GERI shares worth P7.9 billion at A 30-day high of P1.78 and P6.9 billion at a 30-day low of P1.54.

    esdperez@gmail.com

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