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Megaworld to spend P18 billion in next 15 years to develop Cavite township

MEGAWORLD Corp. is investing P18 billion in the next 15 years for the development of a new township in Cavite along with leisure and tourism estate unit Global-Estate Resorts, Inc. (GERI).

In a statement issued over the weekend, the listed property developer said the township called Arden Botanical Estate will cover 251 hectares at the boundary of Trece Martires City and the municipality of Tanza in Cavite.

Residential and leisure villages will make up more than half of the project, with the rest of the space allocated to a mixed-use commercial district, sports and adventures parks, and a school.

The township will feature several gardens and natural parks, namely a Flower Park, Flower Tunnel, and a Children’s Garden that aims to showcase the variety of Philippine flora. It will also be surrounded by natural rivers and lotus ponds, among others.

Arden Botanical Estate will also have its own Electric Tram, which can transport passengers from the township’s entrance to the town center and vice versa.

“Arden Botanical Estate is a one-of-a-kind township development, which will be curated to engage and stimulate the senses. We will put design and aesthetics at the forefront, and function and purpose at the backbone of its planning,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said in a statement.

The township will have a six-lane avenue leading up to a Welcome Pavilion and the Town Center surrounded by commercial areas. It will also have sustainability features, including solar street light, electric shuttles, storm water recycling, permeable pavements for driveways and parking spaces, and organic fertilizers and pesticides for gardens.

Arden Botanical Estate marks the 25th township development under Megaworld’s portfolio, and the seventh under GERI.

This is the second township Megaworld has launched this year, following Highland City in Cainta, Rizal last March. The company earlier said it targets to have 30 townships by 2020, for a total land ownership of more than 6,000 hectares.

The company’s townships are spread out across the country, with nine in Metro Manila, nine in Luzon, six in Visayas, and one in Mindanao.

To support its expansion, Megaworld said it will spend P300 billion in capital expenditures from 2020 to 2024, higher than its P285-billion spending from 2014 to 2019. The company’s capex for this year alone is P65 billion.

Megaworld’s net income attributable to the parent grew 16% to P8.3 billion in the first six months of 2019, after revenues surged 20% to P16.8 billion.

Megaworld is part of tycoon Andrew L. Tan’s holding firm Alliance Global Group, Inc., which also has core interests in liquor, gaming, quick-service restaurants, and infrastructure development. — Arra B. Francia

SEC warns public anew versus Kapa

THE SECURITIES and Exchange Commission (SEC) warned investors anew to avoid dealing with Kapa-Community Ministry International in the face of its alleged revival under a new name.

The country’s corporate regulator said it found several posts on social media claiming that Kapa will be relaunched under the name KAPA Worldwide Ministry Association soon.

It noted that KAPA Worldwide is not registered with the commission as a corporation or a partnership, nor does it have a secondary license that will authorize it to solicit investments from the public.

“The Commission notes that KAPA could have not successfully registered another corporation, given its history of defrauding investors and a pending criminal complaint against it and its officers and promoters,” the SEC said in a statement.

The SEC revoked Kapa’s certificate of incorporation as a non-stock corporation last April for “serious misrepresentation of what it was doing or could do to the great damage or prejudice of the public.”

This arose from its solicitation of investments under the guise of donations, where people can invest at least P10,000 in exchange for 30% returns, or what it called a monthly blessing or love gift.

Investors under this scheme had to do nothing but invest and wait for the guaranteed returns every month.

Kapa had allegedly collected about P50 billion from the public, based on its supposed membership of five million people and the minimum investment of P10,000.

The SEC said Kapa’s activities resembled that of a Ponzi scheme, where early investors gain profits off the investment of newer investors.

Fraudulent transactions, including the so-called Ponzi scheme, are prohibited under the Securities Regulation Code (SRC). It also prohibits persons from engaging in the buying or selling of securities as a broker or dealer, unless they are duly registered with the SEC.

As per the SRC, those acting as salesmen, brokers, or agents of the group may be held criminally liable and pay a fine of up to P5 million or be imprisoned by up to 21 years.

The commission has since lodged a criminal complaint against Kapa, its founder and president Joel A. Apolinario, trustee Margie A. Danao, corporate secretary Reyna L. Apolinario and other promoters of the investment scam. — ABF

Maxus G10 Assist provides elderly, PWD convenience

Text and photos by Kap Maceda Aguila

INGRESS and egress of the elderly and persons with disabilities (PWD) in the Maxus G10 multipurpose vehicle is now made easy with the G10 Assist package.

Maxus Philippines, the local importer and distributor of the commercial vehicle brand with European origins, predicates the dealer option on a programmable swivel lifting seat in the second row — right beside the sliding door. The powered seat “swivels to face the sidewalk, slides out, and can be lowered down to street level so that the elderly or the wheelchair-bound person can easily (sit) or disembark,” said Maxus Philippines General Manager Reginald See.

The Assist device costs an additional P399,800 (inclusive of installation) over the P1.68-million price of a standard Maxus G10. In an interview with Velocity, Mr. See said the rated capacity of the seat is 150 kilos or about 330 pounds. Those who have previously bought a G10 can have theirs retrofitted for the same price, which the executive insisted is “very affordable.” He underscored: “If you look at the options right now in the aftermarket, specifically, our price is up to 40% cheaper.”

Mr. See added that while the standard suggested installment is on the right seat for left-hand-drive territories (so that ingress and egress are on the curbside), two seats can be fitted with Maxus Assist. “We can do that as well. We have options to change the swiveling from clockwise to counter clockwise.” He continued, “The swivel seat is developed for Maxus so we have all the necessary parts components. It’s also in other Asian countries (and is) really made for Maxus.”

The company said in a release that the “programmable swivel lifting seat is easy to operate, via remote control or even through mobile phone via an iOS app. It has a position memory function, path recover function, path obstacle sensor, door interlock, low-power detection and warning, mechanical manual function and anti-tip protection.”

Launched last June 5, the G10 comes with a three-year warranty or 100,000 kms, whichever comes first. Maxus Philippines extends 24/7 emergency roadside assistance, pickup and delivery service, and on-site servicing for corporate fleet accounts.

The nine-seater MPV boasts “modern and luxurious design, offers spacious interior and comfort amenities, highlighted by four captain seats at the rear, power adjustable seat for the driver and front passenger, and flexible seating at the rear to provide spacious luggage room.” Additional accoutrements include a seven-inch touchscreen radio with Bluetooth, USB input, and six speakers. A 220-volt outlet is supplied, along with a front and rear air-conditioning system. It is powered by a Euro 4-compliant, 1.9-liter turbodiesel common rail direct-injection engine mated to a six-speed automatic transmission that produces 150ps and 350Nm.

The G10 meets global safety standards with an integrated body structure, front and side air bags for the driver and front passenger, three-point seat belts on all seats plus Isofix, front and rear parking sensors, and rear camera.

In his welcome speech during the G10 Assist launch, Automobile Central Enterprise, Inc. President Felipe Estrella shared, ”The United Nations observes the International Day of Persons with Disabilities on Dec. 3. We at Maxus Philippines are doing our share to help develop the world that the UN envisions as ‘inclusive, equitable, and sustainable for everyone, where the rights of PWDs are fully realized.’”

For more information about Maxus Philippines, visit www.maxus.com.ph or like and follow Maxus Philippines’ Facebook page and Instagram account (@maxusph). Maxus showrooms are located at Greenfield District on 833 Sheridan Street, Barangay Highway Hills in Mandaluyong City (02-558-5823), and at Cebu along Soriano Avenue in the North Reclamation Area, Mabolo, Cebu City (0917-867-5734).

Aboitiz InfraCapital may venture into new sector

By Denise A. Valdez
Reporter

ABOITIZ InfraCapital, Inc. is seeking to expand its portfolio by tapping a new industry outside water, cement, airports and telco towers through an unsolicited proposal to the government.

Cosette V. Canilao, chief operating officer of the Aboitiz conglomerate’s infrastructure arm, told reporters last week that the company has completed the feasibility study for its desired project and is now assessing its viability and fixing the documentation before the submission of a proposal.

She refused to disclose the specific sector involved and other details of the project, but noted Aboitiz InfraCapital wants to “be a part of the solution in filling the gap in our infrastructure requirements.”

“We’re always on the lookout for opportunities to be a major player in the infra build,” Ms. Canilao said.

Aboitiz InfraCapital was born as a spinoff from Aboitiz Equity Ventures in 2016. It is the Aboitiz Group’s fifth core business which handles all infrastructure investments of the company.

“With the objective of diversifying our Group earnings contribution and establishing a name in the infrastructure space, we will seek growth in selective areas in bulk water, roads, railway, airports and building materials,” Chief Executive Officer Erramon I. Aboitiz said in a 2016 announcement of Aboitiz InfraCapital’s formation.

Over the past couple of years, the company has ventured into water infrastructure, cement, airport development and telecommunications infrastructure.

Under Aboitiz InfraCapital’s water and cement business are the operations of Apo Agua Infrastructure, Inc.; LiMA Water Corp.; and Republic Cement and Building Materials, Inc.

For airports and other infrastructure, the company had submitted three unsolicited proposals to the government: independently for the Bohol-Panglao and Laguindingan airports, and as part of a consortium of seven conglomerates for the Ninoy Aquino International Airport.

For telecommunications infrastructure, Aboitiz InfraCapital partnered with Frontier Tower Associates Philippines, Inc. to sign agreements with Globe Telecom, Inc. and Smart Communications, Inc. to provide them with shareable towers.

If the company were to follow its plans as Mr. Aboitiz said in his earlier announcement, Aboitiz InfraCapital may be expected to venture into roads or railways next. Ms. Canilao said the company is hoping to solidify its plans within the year.

The infrastructure business of the Aboitiz Group is setting aside P16 billion for capital expenditures in 2019.

Ford PHL to focus on customer satisfaction

By Ulysses Ang

PK UMASHANKAR, or Uma as he prefers to be called, has his work cut out for him. Faced with softening sales at Ford Philippines, the new managing director isn’t fazed. A mechanical engineer by education, and a customer service guy at heart, Uma won’t simply focus on chasing market share; instead, he’s looking to transform Ford into a customer-centric car company.

The building blocks were set by his predecessors — a wider dealer network and programs that include reduced maintenance costs, but Uma is going further, providing the “soft skills” his team current lacks.

“I spend every day reviewing all open customer issues,” said Uma, during a meet and greet with the media late last week. “Customer experience is an investment, and I have engaged my dealer partners in a more collaborative listening space. With their cooperation and the help of my team, we have started key initiatives to connect with our owners more directly.”

True enough, when going through the various customer issues, Uma has nothing but praises for his team and his dealers on how they handle the technical side of things. Where they can improve is the speed and quality of the response.

“When a customer brings his car in, the last thing he wants is uncertainty. He doesn’t want to hear his service advisor saying, ‘I don’t know when your part will arrive,’” he said.

This is where Uma’s expertise comes in.

In his previous assignment in Thailand, he managed to streamline parts sourcing and delivery across the Ford network with the use of technology. Using a special bot or program, he effectively cut the time needed to find a part from hours to minutes. Even better, he can definitively tell the lead time it takes to ship and deliver the part to the customer. The best part? He’s able to leverage Ford’s entire network of parts warehouses globally instead of focusing on just one or two regional parts facilities.

“If it requires us to ship a part from South Africa or pull a part from the production line to get a customer’s car running, we can do it,” revealed Uma. Needless to say, Ford guarantees that the price of parts will remain the same for the customer. It’ll be Ford Philippines who’ll shoulder the necessary freight costs.

The Philippines is the second market in the Southeast Asian region to use this global parts sourcing and delivery system. One dealer is already pilot-testing the program and plans are under way to roll this throughout the rest of the network.

“As a brand, Ford is very strong here in the Philippines,” said Uma. “By focusing on bettering our customer experience, we see it as a way to sustain and further our strength here in the country.”

DMCI Homes to develop new condominium in Pasig

DMCI Project Developers, Inc. (DMCI Homes) is set to expand its Pasig City properties with the development of a new residential condominium on Pasig Boulevard, it said in a statement.

In a statement, DMCI said its new two-tower project will be on a 1.3-hectare lot adjacent to DMCI’s Prisma Residences in Barangay Bagong Ilog. It is expected to generate P14.36 billion in sales.

“DMCI Homes is confident of replicating the success of the Prisma Residences with the new project because of favorable outlook for residential spaces in the area,” DMCI Assistant Vice President for Project Development Dennis O. Yap was quoted as saying.

DMCI noted a Colliers International 2019 second quarter property market report showing expected high residential demand in Ortigas in the next three years. They attribute this demand to the entry of offshore gaming in the area.

“The new development will be our 12th residential project in Pasig City since DMCI Homes started operations in 1999. It is worth noting also that since 2016, this will be our ninth project in the city which only reflects the big demand for residential spaces in Eastern Metro Manila,” Mr. Yap said.

The three-tower Prisma Residences launched in 2017 is 94% sold as of late August.

The new condominium is one of the five projects that DMCI Homes wants to launch before yearend.

DMCI Homes is the real estate arm of conglomerate DMCI Holdings, Inc., which has interests in power, mining, construction, and water.

DMCI Holdings, Inc. reported a 20% decline to P3.8 billion in net income for the second quarter. DMCI Homes also reported a 36% drop to P1.2 billion net earnings from April to June, while core net income was up 5%. — Jenina P. Ibañez

Porsche debuts its first full-electric sports car: The Porsche Taycan

LAST SEPT. 4, Porsche introduced its first fully-electric sports car, the Taycan, to the public with a spectacular world premiere held simultaneously in Germany, Canada and China.

The Porsche Taycan is a four-door sports sedan offering typical Porsche performance and connectivity with everyday usability. At the same time, highly advanced production methods and the features of the Taycan are setting new standards in the fields of sustainability and digitalization.

“The Taycan links our heritage to the future. It carries forward the success story of our brand — a brand that has fascinated and thrilled people the world over for more than 70 years,” said Oliver Blume, chairman of the Executive Board of Porsche AG, who opened the world premiere in Berlin: “This day marks the start of a new era.”

The first models in the new series are the Taycan Turbo S and Taycan Turbo. They are at the cutting edge of Porsche E-Performance and are among the most powerful production models that the sports car manufacturer currently has in its product range. The first derivative to be added will be the Taycan Cross Turismo at the end of next year and by 2022, Porsche will have invested more than six billion euros in electromobility.

PERFORMANCE MEETS EFFICIENCY
The flagship Turbo S version of the Taycan can generate up to 761ps overboost power in combination with Launch Control, and the Taycan Turbo up to 680ps. The Taycan Turbo S accelerates from zero to 100 km/h in 2.8 seconds, while the Taycan Turbo completes this sprint in 3.2 seconds. The Turbo S has a range of up to 412 kilometers, and the Turbo a range of up to 450 kilometers. The top speed of both all-wheel-drive models is 260 km/h.

The Taycan is the first production vehicle with a system voltage of 800 volts instead of the usual 400 volts for electric cars. This is a particular advantage for Taycan drivers on the road: in just over five minutes, the battery can be recharged using direct current (DC) from the high-power charging network for a range of up to 100 kilometers. The charging time for 5% to 80% SoC (state of charge) is 22.5 minutes for charging under ideal conditions, and the maximum charging power is 270 kW. The overall capacity of the Performance Battery Plus is 93.4 kWh. Taycan drivers can comfortably charge their cars with up to eleven kW of alternating current (AC) at home.

PURE EXTERIOR DESIGN WITH PORSCHE DNA
With its clean, pure design, the Taycan signals the beginning of a new era. At the same time, it retains the unmistakable Porsche design DNA. From the front it looks particularly wide and flat with highly contoured wings. The silhouette is shaped by the sporty roofline sloping downward to the rear and the highly sculpted side sections are also characteristic. The sleek cabin, the drawn-in rear C-pillar and the pronounced shoulders of the fenders result in a sharply emphasized rear, typical of the brand. There are also innovative elements such as the glass-effect Porsche logo, which has been integrated into the light bar at the rear.

UNIQUE INTERIOR DESIGN WITH A WIDE DISPLAY SCREEN BAND
The cockpit signals the start of a new era with its clear structure and a completely new architecture. The freestanding, curved instrument cluster forms the highest point on the dashboard. This places a clear focus on the driver axis. A central, 10.9-inch infotainment display and an optional passenger display are combined to form an integrated glass band in a black-panel look. All user interfaces have been completely newly designed for the Taycan. The number of classic hardware controls such as switches and buttons has been greatly reduced. Instead, control is intelligent and intuitive — using touch operation or the voice control function, which responds to the command “Hey Porsche.”

With the Taycan, Porsche offers an entirely leather-free interior for the first time. Interiors made from innovative recycled materials underscore the sustainable concept of the electric sports car. “Foot garages” — recesses in the battery in the rear footwell — ensure sitting comfort in the rear and allow the low vehicle height typical of sports cars. Two luggage compartments are available: the front compartment has a capacity of 81 liters while the rear has 366 liters.

INNOVATIVE DRIVE MOTORS AND A TWO-SPEED TRANSMISSION
The Taycan Turbo S and Taycan Turbo have two exceptionally efficient electric machines, one on the front axle and one on the rear axle, thus making the cars all-wheel drive. Both the range and the continuous power of the drive benefit from the high efficiency of the permanently excited synchronous motors. The electric motors, transmission and pulse-controlled inverter are each combined into a compact drive module. The modules have the highest power density (kW per liter of package space) of all electric powertrains on the market today. A special feature of the electric motors is the “hairpin” winding of the stator coils. This technology makes it possible to incorporate more copper in the stator, increasing power output and torque while maintaining the same component volume. The two-speed transmission installed on the rear axle is an innovation developed by Porsche.

CENTRALLY NETWORKED CHASSIS SYSTEMS
Porsche uses a centrally networked control system for the Taycan chassis. The integrated Porsche 4D Chassis Control analyzes and synchronizes all chassis systems in real time. Its adaptive air suspension with three-chamber technology includes PASM (Porsche Active Suspension Management) electronic damper control, as well as the Porsche Dynamic Chassis Control Sport (PDCC Sport) electromechanical roll stabilization system and the Porsche Torque Vectoring Plus (PTV Plus).

The profile of the different driving modes basically follows the same philosophy as in other Porsche model series. This is supplemented by special settings which enable optimum use of the purely electric drive. Four driving modes are available: “Range,” “Normal,” “Sport” and “Sport Plus.” In addition, individual systems can be configured as required in the “Individual” mode.

Michael Steiner, member of the Executive Board of Porsche AG-Research and Development, emphasized: “We promised a true Porsche for the age of electromobility — a fascinating sports car that not only excites in terms of its technology and driving dynamics, but also sparks a passion in people all over the world, just like its legendary predecessors have done. Now we are delivering on this promise.”

Major conference will look into the business side of fashion

A DESIGNER-LED fashion initiative, the PHx Fashion Conference aims to provide a holistic, inspirational, and informative experience for Filipino fashion practitioners, and ultimately, to expand the market for Philippine fashion. The conference — to be held on Nov. 11 to 14 at the Philippine Trade Training Center in Pasay City — will tap into the combined strengths of Japan and the Philippines to incubate the next generation of global Filipino fashion designers.

“I think it’s about time that we have this conference in Manila, that we really push the Filipino designer to think beyond the Philippine market,” current head of the Fashion and Design Council of the Philippines (FDCP) and founder and creative director of Aranaz, Amina Aranaz-Alunan told BusinessWorld at the conference’s launch on Sept. 3 in Makati. “I’m not saying that the Philippine market is not enough, because it is. There’s a lot of growth in the Philippine market. But I think that somehow, it’s also our responsibility to tell the Filipino story to the rest of the world.”

It’s easy to note that gaps in the Philippine fashion industry, which has yet to launch a brand or a personality on the same level as, say, Christian Dior or Gucci. These gaps would include lacunae on manufacturing, which Ms. Aranaz-Alunan acknowledged. However, she said, “The main challenge to bring it to the global market is really information on how to do it.” She cited that a lot of young designers need information on buyers, suppliers, government procedures and support, and matters such as taxation and shipping logistics. She also said that while the government, through the Department of Trade and Industry (DTI), can give support, “If you compare the support the government support that the Philippines gets, compared to other neighboring countries, it’s not the same.”

“It’s not an overnight fix,” she admits. “It really has to be a shift in culture; a shift in mindset. It’s really an entire ecosystem.”

The conference — co-presented by DTI through its agency The Philippine Training Trade Center (PTTC) and the FDCP — will bring together resource speakers and lecturers from both the creative and business ends of the fashion industry to discuss overseas market opportunities and best practices in a regional and global level. It is designed by Philippine fashion practitioners for their colleagues, especially the fashion designers working on their labels.

“The Japanese fashion industry turns over sales of approximately $143 billion. It’s one of the most exciting and most important fashion markets in the world,” former model Teresa Ortiz-Matera of LIT Fashion Consultancy, who is a PHx Fashion Conference project adviser, was quoted as saying in a press release. “That’s why it’s also exciting to look into it and see how we can learn from it.”

Speakers from Japan will work together with some of the biggest names in the Philippine fashion industry, and the four-day conference will dive into the Japanese market’s culture and patterns, export costings and pricings, and modes of distribution. It will also discuss how Philippine fashion can create a relevant global presence, and how Filipino designers can compete in today’s digitally operated global fashion industry.

Australian fashion director and editor Jason Lee Coates, and marketing and business administration expert Hirohito Suzuki of H3O Fashion Bureau will be among the speakers at the conference. Established in 2006, H3O discovers fresh brands and emerging talents from Japan, Asia, and the rest of the world, and helps them create a strong base in the Japanese fashion industry and the global market.

Also among the conference speakers are Ms. Aranaz-Alunan; fashion retailer Mike Concepcion; London-trained Filipino fashion designer Carl Jan Cruz; former fashion and lifestyle journalist and co-founder of the Tokyo-based skincare brand Damdam, Giselle Go; DTI-CITEM executive director and former fashion editor Pauline Juan; founder and designer of Tokyo-based Filipino clothing and shoe brand JMan, Johann Manas; LIT Fashion Consultancy’s Ms. Ortiz-Matera; and co-owner and design director for Proudrace, Rik Rasos. More speakers are to be announced soon on www.phxfashion.org.

Aside from creative talks, panel discussions, and workshops during the conference, select participants will also get a chance to have their design portfolios reviewed by H30 Fashion Bureau’s Mssrs. Coates and Suzuki and LIT Fashion Consultancy’s Ms. Ortiz-Matera.

It can be inferred that the Philippine fashion market is ripe for the picking. Environmental concerns and a distaste for the ubiquitous are slowly shifting consumers to fashion that is sustainable, artisanal, and produced on smaller scale — which just so happens to be what the Philippines is known for.

“We could never compete with the mass-manufacturing, huge factories that China has,” said Ms. Aranaz-Alunan. “We are about artisanship, small, and meaningful. We’re lucky now that it’s also what the international market is looking for.”

“The world is looking for products with meaning. It’s just right for us now, because that’s what we can do.” — JL Garcia

MPIC hospital unit’s listing plans drive stock price movement

By Mark T. Amoguis
Senior Researcher

PLANS OF Metro Pacific Hospital Holdings, Inc. (MPHHI) to embark on an P83.3-billion maiden share sale drove the stock movement of parent Metro Pacific Investments Corp. (MPIC) last week.

A total of 87.95 million MPIC shares worth P452.46 million were traded from Sept. 9 to 13, data from the Philippine Stock Exchange (PSE) showed.

MPIC went down by 1.2% to P5.14 apiece last Friday from its P5.20-per-share finish on Sept. 6. Meanwhile, it has rallied by 11.5% since the start of the year.

Stock market watchers traced MPIC’s stock price activity to the company’s plan to list its hospital unit MPHHI by November this year despite receiving interest from buyout firms to buy as much as a 40% stake in the hospital subsidiary.

“The Pangilinan-led conglomerate returned to investors’ radar this week, following news about the public listing plans of its hospital unit,” Regina Capital Development Corp. equity analyst Rens V. Cruz II said in an e-mail.

This planned initial public offering (IPO) is estimated to rake in at least P75.1 billion worth of proceeds from the secondary offer, assuming over-allotment is exercised, he noted.

“These potential capital inflow enticed participants to re-position in the stock, given how undervalued MPI has been in the last few months,” Mr. Cruz said, referring to the MPIC’s ticker symbol in the stock exchange.

“So, right now, after the announcement that the hospital unit will be sold, it certainly piqued investor interest on MPI,” AP Securities, Inc. senior equity analyst Rachelle C. Cruz said in a phone interview.

Ms. Cruz also noted that there are other private equity companies interested in buying MPHHI, which would seem that MPI is trying to get a higher price either via private equity placement or through the IPO.

Bulk of the proceeds, she said, will go to MPIC to reduce its debt burden and improve cash flows. “In terms of who would benefit from this asset selldown, it’s really MPI. That’s why a lot of investors are looking at MPI and the hospital selldown,” she said.

Last Sept. 4, MPHHI said it plans to offer up to 417.09 million common shares, consisting of up to 35.82 million new common shares as part of the primary offer, priced tentatively at a maximum of P182 each.

At this price level, the hospital unit of MPIC could raise as much as P83.3 billion or approximately $1.6 billion.

The remaining 381.27 million existing common shares will be sold by selling shareholder, MPIC. This will include up to 40.771 million shares for the over-allotment option. MPHHI will not get anything from the sale of MPIC’s shares.

Should it secure regulatory approvals from the Securities and Exchange Commission and the PSE, the final offer price is set to be announced on Nov. 14. The offer period will run from Nov. 18 to 22.

MPHHI’s shares are expected to be listed on Dec. 2 under the ticker “HOSP.”

It operates 14 hospitals with more than 3,200 beds across the country, including Makati Medical Center and Cardinal Santos Medical Center.

Meanwhile, Reuters reported in August that buyout companies such as KKR & Co., Inc., The Blackstone Group, Inc., and CVC Capital Partners are lining up to compete for a 40% stake in MPIC’s hospital business valued between $2 billion and $2.5 billion.

In the first half of 2019, MPIC’s attributable net income slipped by 9.3% to P8.11 billion from P8.94 billion in 2018’s comparable six months.

“At this point, MPI is looking for a strong support to use as a jumping board to rally again, hopefully near the week-long price floor of P5.10. Indicators are still bullish, but not yet overbought, so prices are still likely to improve. Next resistance near-term now at P5.35,” Regina Capital’s Mr. Cruz said.

Meanwhile, AP Securities’ Ms. Cruz said that investors are waiting for news on how the hospital unit will be valued because of the large difference between proceeds from IPO and buyout companies.

“Investors are waiting before snapping up MPI probably [in] November and December until there’s deal whether IPO or private equity buyout. I think the [share] price will move sideways until that period,” she said.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

T-bill rates to drop as mart awaits BSP move

TREASURY BILLS (T-bill) on offer tomorrow will likely fetch lower rates as the Bangko Sentral ng Pilipinas (BSP) chief said another rate and reserve requirement ratio (RRR) cut could be implement as early as this month.

The Bureau of the Treasury (BTr) will offer T-bills worth P15 billion on Monday, broken down into P4 billion, P5 billion and P6 billion for the 91- 182- and 364-day papers, respectively.

A trader said on Friday that T-bill rates may decline anew versus the previous auction’s results, with the one-year papers likely to fetch a yield of around 3.5%.

“We are getting more positive feedback on the policy rate cut and RRR cut soon. BSP Governor [Benjamin E.] Diokno did mention that. The market is speculating that it will come by September or October…and it may come simultaneously. That’s why the market is looking for lower rates,” the trader said in a telephone interview.

A second trader said T-bill rates may move sideways following Mr. Diokno’s comment on Friday that the central bank plans to slash policy rates anew this month.

“We expect yields to move sideways from the previous auction. Factors to be considered are recent cut in policy rates and then the news that BSP Governor Diokno mentioned the rate cut will come sooner than later — so that’s possibly a rate cut this month on both policy rate and reserve requirement,” the second trader said over the phone on Friday.

The government raised P15 billion as planned via T-bills at an auction last Sept. 2, with total bids amounting to P40.3 billion.

Broken down, the government raised P4 billion as programmed via the 91-day T-bills, with total tenders amounting to P11.35 billion. The tenor’s average rate declined by 10.5 basis points (bp) to 3.149%.

The Treasury likewise raised P5 billion as planned via the 182-day papers out of bids worth P14.62 billion. The debt papers fetched an average rate of 3.429%, down by 4.2 bps.

For the 364-day T-bills, the government awarded P6 billion as programmed, with total tenders reaching P14.281 billion. The average yield however inched up by 2.3 bps to 3.659%.

Meanwhile, at the secondary market on Friday, the three-month, six-month and one-year T-bills were quoted at 3.345%, 3.513% and 3.699%, respectively, according to the PHP Bloomberg Valuation Service Reference Rates.

Mr. Diokno told reporters on Friday that the central bank’s plan to cut benchmark interest rates anew “won’t reach November.”

“Could be October or September,” Mr. Diokno said.

The BSP chief added that they are still studying whether they will announce and implement the planned cuts to policy rates and big banks’ RRR in one go or in different events.

The central bank’s Monetary Board holds policy-setting meetings every six weeks. Its remaining reviews for the year are scheduled on Sept. 26, Nov. 14 and Dec. 12.

The BSP has cut rates by a total of 50 bps this year — by 25 bps each last May 9 and Aug. 8 — to 4.25% for the overnight reverse repurchase rate, 4.75% for overnight lending and 3.75% for overnight deposit, partially dialing back the 175-bp cumulative hikes triggered last year by successive multi-year high inflation that peaked at a nine-year high.

Mr. Diokno earlier said the central bank is looking to cut policy rates by another 25 bps as well as slash big banks’ reserve ratios before the year ends.

He said the Monetary Board plans to “pre-announce” RRR moves on a quarterly basis to prepare the markets.

Currently, the RRR is at 16% for big banks and six percent for thrift banks following the phased 200-bp cut implemented after an off-cycle meeting last May. The reserve ratio of rural and cooperative lenders was also cut to four percent from five percent effective May 31.

Mr. Diokno has said he is committed to trim universal and commercial banks’ RRR to single digit before his term ends in 2023.

The government is set to borrow P230 billion from the domestic market this quarter through T-bills and Treasury bonds.

It wants to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — BML

Foton opens larger, grander Cagayan De Oro showroom

JUST THREE WEEKS after inaugurating its Metro Clark showroom, FOTON continues to show off its relentless dealership expansion with the reopening of a grander and newly renovated Cagayan De Oro facility.

“As our brand grows, we also want our customers to experience how great FOTON is when they purchase their vehicles and during the after-sales processes. We want them to feel FOTON’s welcoming ambiance, and have a hassle-free ownership experience as soon as they enter our dealership,” said FOTON Cagayan De Oro Dealer Principal Roger Chiu.

Moved to a larger and more accessible site, the FOTON CDO dealership now showcases a two-storey state-of-the-art building situated on a 2,000-square-meter lot. With the capacity of both storeys combined, the showroom is capable of housing 30 vehicles for display, and a total of 10 bays in its service area. It also houses parts and accessories counters and a contemporary customer lounge where clients can sit back and relax while waiting.

“The inauguration of FOTON Cagayan De Oro marks yet another milestone in our persistent commitment to establish fruitful and everlasting relationships with our patrons. We continuously strive to reach our customers in different areas around the Philippines, and deliver world-class FOTON products and services by providing an extraordinary customer experience with us,” said FOTON Philippines President Rommel Sytin.

First inaugurated in 2008, FOTON Cagayan De Oro serves as the first FOTON dealership to be established outside Metro Manila. “We are truly grateful to FOTON Philippines and United Asia Automotive Group, Inc. for its long-term support and encouragement for more than 10 years,” Mr. Chiu added.

The introduction of a dependable yet affordable make of passenger cars, commercial trucks, and specialized vehicles for the transportation needs of Cagayan de Oro has clearly contributed to the region’s multi-faceted and continuous growth. “For the past decade, I’m proud to say that FOTON Cagayan de Oro has strongly impacted the region’s trade and commerce, banking, infrastructure development, employment, public services, and, widely, the private sector,” noted Mr. Chiu.

Dubbed as “The City Made of Gold,” Cagayan De Oro proves that the area bears high potential to big business opportunities. Its incessant economic expansion, evident by booming high-rise hotels, condominiums, malls, IT/BPO companies, tourism, and fast-paced real estate developments, continue to cement its reputation as the entryway to Northern Mindanao.

“Since our brand reached the Philippine shores, we have been driven by the philosophy of ‘Empowering Businesses’ through our products and services. Our team is geared up to ensure worry-free vehicle buying and owning experience for every customer and unwavering support to our dealer partners as well,” proudly exclaimed Mr. Sytin.

The company announced that FOTON eyes to open 30 dealerships across the country by the end of the year. These outlets will be offering passenger vehicles including vans, pickup trucks, and SUV; light-duty trucks; medium-duty trucks; heavy-duty trucks; and heavy machinery — all designed for the increasing demands of various businesses in the region.

Mr. Chiu noted: “Our team is here to address FOTON’s commitment through best-in-class purchasing and service offerings at our full-fledged facility. As ambassadors of FOTON, we look forward to representing the premium brand by demonstrating their renowned products and service quality to the people in the region, ensuring the highest level of satisfaction of the valuable customers.”

Mr. Sytin closed: “We are glad to have intensified our reach in Northern Mindanao, which is a very important aspect of our growth strategy, thus aligning with our approach to offer advanced amenities and quality services through strategically located network setups in different parts of the Philippines.”

There is more to a pedicure than choosing a color

YOU’LL HAVE just until today to get a pedicure similar to those that keep Cate Blanchett, Robert de Niro, Naomi Campbell, and Gwyneth Paltrow on their feet. Until Sept. 16, the Conrad Manila highlights “Healing Foot Treatments” with celebrity podiatrist Albin Brion of BGA at its Conrad Spa. The 60-minute treatment consists of a specially designed foot care and pedicure session followed by a relaxing foot massage that helps alleviate foot ailments or soreness and aides in restoring the elasticity of the skin and nails.

These celebrities get their treatments from BGA founder Bastien Gonzales, and one of his disciples, Mr. Brion, is offering the “Signature Bastien Pedicure,” which helps regenerate the natural glow and shine of the nails while also preventing any future nail problems such as ingrown nails. It also addresses corn, calluses, or tough and dry skin, among other benefits. Immediate benefits following Bastien Gonzales’ foot massage technique include increased blood flow, joints mobility, muscular flexibility, improved skin elasticity, and more soothing foot sole. The treatment is priced at P8,500 net per session, with prior reservations highly encouraged — only seven slots are available per day.

The Paris-born Mr. Brion studied podiatry before training under the renowned “foot virtuoso” Mr. Gonzales. He has worked in private clinics in Europe as well as select luxury hotels in Dubai, Mauritius, and Hong Kong and often caters to international celebrities and athletes. Mr. Brion was cited as the “Best Therapist/ Trainer of the Year” at the 2017 Spa China Award and also received the “Best HK Pedicure” from Prestige Magazine Hong Kong, among other accolades.

Mr. Brion was a professional football player turned foot care specialist. Telling BusinessWorld how it influenced his current career, he says, “I discovered the job of podiatrist when I was a football professional player. I got a serious twisted ankle. As the physiotherapist couldn’t heal my injury, he recommended me to see a podiatrist. There and then, I found my vocation and knew I wanted to study podiatry in order to help all my football mates. I am now a professional specialist for sport podiatry and taking care of the tennis, football players, and lots of runners. As a former athlete, it is easier to understand the body posture and how to fix/prevent injuries.”

One might tend to think that the feet are merely flesh stumps designed to keep you up and on the ground (a blessing that those of us who can walk can take for granted), but the feet are an important ecosystem; a virtual machine that can influence how one lives their life. As Mr. Brion said, “The word ‘pedicure’ has been misleading and not well utilized. Indeed, if you split the word into two: pedi, podos, podiare — in Latin, that means feet; and cure, curare, means curing. However, in most of the salons and spas, the first question they ask is: which color do you want? That shows that they are not doing a pedicure but a beauty [treatment] for feet. Podiatry is a field where the specialist examines the condition of the feet and addresses specific concerns using scientific tools and procedures; even before using cosmetic products.”

Furthermore, what else is luxury but treating even the most overused and hardworking to only the best?

“Feet are one of the most sophisticated and anatomically intricate parts of the body: 26 bones, 51 muscles, and 103 ligaments. They carry our body weight and give us mobility for all of our lives; but are still the most neglected parts of the body,” said Mr. Brion. — JLG

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