By Arra B. Francia, Reporter
TYCOON Andrew L. Tan has stepped down as chief executive officer of holding company Alliance Global Group, Inc. (AGI), appointing eldest son Kevin Andrew L. Tan to take his place.
In a statement issued Monday, the listed conglomerate said the older Tan will remain as AGI’s chairman, a position he has held alongside being CEO since 2006. The 68-year-old billionaire, ranked as the country’s ninth richest by Forbes magazine with a net worth of $2.5 billion last year, cited personal reasons for his resignation.
AGI serves as the holding firm for Mr. Tan’s businesses in property through Megaworld Corp.; gaming through Travellers International Hotel Group, Inc., which operates Resorts World Manila; liquor through Emperador, Inc.; and quick service restaurants through Golden Arches Development Corp. (GADC), which is the exclusive franchisee of McDonald’s in the Philippines.
As AGI’s new CEO, the younger Tan will now be in charge of the conglomerate’s strategic direction, financial operations, and investments and acquisitions.
Prior to his appointment, the 38-year old executive has served as AGI’s executive director since September 2016, taking charge of the company’s external affairs and acting as representative in both private and public functions.
He also served as director of GADC, Emperador, and two of Megaworld’s subsidiaries, Empire East Land Holdings, Inc. and Global-Estate Resorts, Inc.
The younger Tan is credited for his work in Eastwood City, Megaworld’s first township development that houses residential, office, retail, and entertainment projects. He has since been tapped for the master planning of the company’s other townships in the country, while also being involved in land acquisitions and property investments.
Under Megaworld, he currently works as the head of mall and commercial developments unit called Lifestyle Malls. There are currently 15 full-scale malls under Megaworld’s portfolio, with plans to increase the network to 28 by 2020.
The younger Tan also serves as the president of newly incorporated Infracorp Development, Inc., the latest addition to AGI’s portfolio. Infracorp is proposing to build a two-kilometer monorail connecting the Metro Rail Transit Line 3 to Megaworld’s Uptown Bonifacio township in Taguig City. The Department of Transportation granted the firm original proponent status for the project last month.
The new AGI chief earned his degree in business administration from the University of Asia and the Pacific. Analysts welcomed the appointment, noting the younger Tan’s involvement in the company is the past two decades.
“The usual, new blood, new ideas (such as the monorail), and yet still maintaining tradition, he already has been involved in the company and it shouldn’t be a surprise to the market,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
PNB Securities, Inc. President Manuel Antonio G. Lisbona also said he is optimistic about the new leadership.
“He’s been working in the group for quite a while (I think about 20 years) and has the necessary experience and credentials,” Mr. Lisbona said via text.
AGI booked a 2% decline in net income attributable to equity holders of the parent to P3.5 billion in the first quarter of 2018, amid a 5% increase in revenues to P35.5 billion. The conglomerate blamed higher interest charges and unrealized forex losses for its performance during the period.
Shares in AGI lost six centavos or 0.46% to close at P13 each at the Philippine Stock Exchange on Monday.