URC’s paper wealth in 46.1M treasury shares tops P10B

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Emeterio Sd. Perez

Emeterio Sd. Perez

Ownership profile
As of January 15, four stockholders control 62.95 percent of Nickel Asia Corp. with total direct and indirect holdings of 1.593 billion shares out of 2.35 billion outstanding shares. They have direct holdings of 485.757 million shares and indirect holdings of 1.108 billion.

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Nickel Asia’s four stockholders who, as a group, are the majority owners as of Jan. 15 are Mantra Resources Corp. and Ni Capital Corp., which indirectly owned 645.334 million shares and 338.91 million shares, respectively. Sumitomo Metal Mining Philippines Holdings Corp. and Pacific Metals Co. Ltd. directly owned 481.553 million shares and 4.204 million shares. Sumitomo also indirectly owned 123.376 million shares.

Of the nine members of the board, Luis J. Virata is listed in an ownership filing as the single biggest stockholder. He is listed in a filing as owner of 323.613 million shares, or 12.79 percent.

Insiders’ trades
On February 4, Jose Teodoro Katigbak Limcaoco, chief finance officer and finance group head effective April 15, 2015 of Ayala Corp., sold 1,000 AC shares at P728 each of his indirect holdings of 9,342 shares. He also directly owned 125,665 AC shares.

Early this year, Limcaoco indirectly owned 11,342 AC shares before he sold 1,000 shares at P701 each on Jan. 6 and another block of 1,000 shares at P704 each.

On Feb. 2, Joseph M. Yap and/or Lourdes Josephine G. Yap, members of the board of Filinvest Land Inc. (FLI), sold one million FLI shares at P1.68 each. The sale reduced their holdings to 44.484 million shares. PLI closed at P1.70 on Feb. 9. Lourdes is also FLI president and chief executive officer.

From P14.542 to P224 per share
Universal Robina Corp. (URC) has 2.182 billion outstanding shares with par value of P1.It also had 46.1 million treasury shares valued at P670.386 million, which translates to acquisition price of P14.542 per share. At current price, URC must be very rich. Its 46.1 million treasury shares had market value of P10.326 billion computed at closing price of P224 on Feb. 9.

URC has been raising funds by selling—or reissuing which is the more commonly used term—treasury shares at big profit.

As of Sept. 30, 2011, URC had 166.1 million treasury shares which it had bought back at total cost of P2.4 billion, for an average acquisition price of P14.449 per share. In 2012, URC grossed P7.44 billion from the sale of 120 million treasury shares at P62 per share for gross profit of P5.706 billion or P47.551 per share.

The public stockholders of Universal Robina must be very happy with URC’s stock’s surging price. Available postings on www.pse.com.ph showed URC share price averaged P29.229 in 2010; P43.73 in 2011; and P62.319 in 2013.

Universal Robina began as Universal Corn Products Inc., which businessman John Gokongwei Jr. founded in 1954 when he was 28 years old.

SMIC’s P130.828-B surplus
When was the last time you looked at SM Investments Corp.? As the listed holding company of businessman Henry Sy Sr. and his family, you may be interested in SMIC because you associate it with the chain of department stores that it owns, among so many other businesses.

Perhaps, as a public investor, you have been closely monitoring the stock because you are among the small stockholders of the company.

What have the numbers as have been properly disclosed told you?

That SMIC’s net income fell to P25.62 billion in the first nine months ending Sept. 30, 2014 from P26.804 billion in the same period in 2013 would not have pleased you.

But to better appreciate SMIC’s financials, why not be positive by examining its retained earnings of P130.828 billion as of Sept. 30, 2014 after allocating P27 billion for expansion—P8 billion for hotel projects; P10 billion for commercial buildings and P9 billion for acquisitions.

Surging stock
The huge surplus that SMIC has accumulated enabled the company to declare dividends either in cash or in stock—P10.34 per share for a total of P8.233 billion in 2014; and P11.80 per share for a total of P7.402 billion and 25 percent stock dividend in 2013.

But here is the more attractive numbers: The Sys owns a total of 381.64 million, or 47.924 percent of outstanding shares. Computed as at P914 per share on Feb. 9, their holdings had paper value of P348.819 billion.

Available filings showed the Sys ahead by P465.06 per share, or 103.591 percent at the average price of P448.94 each in 2010; by P378.335 per share, or 70.629 percent at P535.665 per share in 2011; and by P204.315 per share or 28.79 percent at P709.685 per share in 2012.

esdperez@gmail.com

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1 Comment

  1. Mabuhay ka, Mr. Perez! Mabuhay ang URC at SM!
    Tumulong naman sana ang mga tycoons na iyan na combinsihin si Aquio na magresign.
    Or help quickly bring this evil administration down!