Villar: From business to politics to business

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Emeterio Sd. Perez

Emeterio Sd. Perez

After serving two six-year terms as senator from 2001 to 2013, Manuel Villar Jr. returned late last year to the group of companies that he and his family control. He was senate president from 2006 to 2008.

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A filing posted by Vista Land and Landscapes Inc. on the website of the Philippine Stock Exchange credited Villar with the founding of Camella Homes, renamed Vista Land, in the 70s.

He “successfully managed said company over the years to become the largest homebuilder in the Philippines,” the company said in the same filing.

While Vista Land welcomed Villar to continue charting the company’s growth, Due Diligencer considers worth watching the performance under his watch of Vista Land group’s six subsidiaries of which two have their own units. Camella Homes Inc. and Communities Inc. wholly own three and 20 subsidiaries, respectively.

Fine Properties Inc., the unlisted mother company, owns 66 percent of Vista Land.

Financials
Having been a businessman before turning politician, did Villar learn anything from politics that he could have applied in managing Vista Land group and directing the family-controlled conglomerate in competing with the other giant property companies?

The public stockholders of Vista Land may be able to measure Villar’s performance by examining the company’s financials this year, which, is Villar’s first full year as chairman of the board.

In a consolidated financial filing, Vista Land reported net profit of P4.245 billion in the first nine months of 2014, up 12.094 percent from P3.787 billion in the same period in 2013. These profits resulted from revenues which increased 13.653 percent to P18.089 billion in the first three quarter of 2014 from P15.916 billion in the same period last year.

Ownership profile
Vista Land has outstanding capital stock of 11.839 billion shares divided into 8.539 billion common and 3.3 billion preferred. Both classes are voting shares of which Fine Properties Inc. controls 53.66 percent of common and 100 percent of preferred.

When computed based on total capital stock of 11.839 billion shares, which are all voting stocks, Fine Properties owns 7.882 billion shares, or 66.577 percent, while the public hold 3.957 billion common shares, or 46.34 percent of outstanding common shares and 33.423 percent of 11.839 billion total outstanding capital stock.

The percentage is still much higher than the minimum public ownership of 10 percent required under the rule of the Securities and Exchange Commission.

At P6.44 per share, which was VLL’s last trading price on December 23, Fine Properties’ 7.882 billion common shares have market value of P50.76 billion.

Compensation
In 2013, Villar attended two board meetings of Vista Land – one in September and one in November. At P125,000 per meeting fee, he received a total of P250,000.

Villar was also one of the company’s six highest paid executives in 2013 who received salary of P26.1 million in salary and bonus of P4.7 million. The compensation filing did not show the individuals’ pays and perks.

This year, Vista Land it may pay its the six top executives, including Villar, salary of P28.7 million and bonus of P5.2 million.

Besides Villar, the five other highest paid executives of Vista Land are his son, Manuel Paolo Villar, president and chief executive officer; Cynthia J. Alvarez, controller; Ricardo B. Tan Jr., chief finance officer and corporate information officer; Maribeth C. Tolentino, chief operating officer, Vista Land Residences; and Jerylle Luz C. Quismundo, chief operating officer, Communities Philippines.

esdperez@gmail.com

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2 Comments

  1. Have you seen the C5 that this guy diverted illegally to benefit his properties in Las Pinas? Even during rush hours it looks like EDSA during Holy Week. Only those who are not appalled by corruption will find this guy impressive.

  2. armando flores on

    Villar besides being a landgrabber is also a plunderer of public funds. His family’s capitol development bank, now renamed optimum development bank, got billions from the Bangko Sentral ng Pilipinas (BSP) in the form of financial loan assistance secured by equally fraudulent titles over lands in Norzagaray/Sn Jose del Monte in the name of Manila Bank Inc. of Puyat. Villar got the approval of the BSP in early 2001 after ERAP was ousted from Malacanang. That was his reward for paving the way of ERAP’s impeachment. After defaulting in paying the loans, the BSP foreclosed the lands being occupied and owned by the real owners who are now being dispossessed of their landholdings. The BSP is holding on to the land titles which according to the DENR are mostly part of the forest lands which cannot be privately appropriated. The government has filed a reversion case against BSP which is still pending before a Malolos City RTC. THERE IS MUCH MONEY TO BE GAIN BY ENTERING POLITICS THE VILLAR WAY!