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Duterte will not allow election cheating — Palace

MALACAÑANG warned on Friday that President Rodrigo R. Duterte will not allow any form of cheating by the election commission in the 2019 midterm elections on Monday, stressing that the Commission on Elections (Comelec) should ensure the integrity of the ballots.

“Huwag na nilang ituloy kung ano ang balak nila, hindi papayag si Presidente (They should not push through with whatever they plan to do, the President will not allow it),” Presidential Spokesperson Salvador S. Panelo warned at a press briefing on Friday.

In a statement, he said: “We urge the Commission on Elections to do its constitutional duty as the sentinel of the elections in ensuring the integrity of the ballots. Any form of cheating committed by the electoral body’s personnel or contractor (Smartmatic) will not to be tolerated by this Administration.”

He noted that there have been “concerns and apprehensions” raised by “various quarters” regarding the conduct of the upcoming 2019 elections.

“The President has put in place measures designed to determine if cheating has been committed in the polls. We are thus issuing a stern warning to those who have sinister plans and evil machinations of thwarting the will of the electorate to abandon them,” he said.

He also stressed that violators will be “prosecuted to the fullest extent” of the law, and nobody will be spared “regardless of their political affiliation or station” in life.

Mr. Panelo likewise reported that the government is now “all set” for the elections with “36,000 schools now ready to be used as polling precincts and 230,000 teachers as members of the Electoral Boards and technical support for Monday’s elections, as per the Department of Education.”

The Philippine National Police (PNP), he also said, will deploy “150,000 police personnel in various parts of the country to ensure public safety and security” on Monday.

He noted that the PNP has already launched the National Election Monitoring Action Center “to monitor situations in all polling centers from Camp Crame, including the arrival of vote counting machines (VCMs), counting of ballots, and delivery of ballot boxes.”

The Department of Energy (DoE), he said, has assured that there will be “stable power” on Monday, which has been “a paramount concern as electricity is required in the automated voting system.”

“We wish the candidates all the best. This is the time to show our Filipino bayanihan spirit in ensuring that the elections will be held without any major glitches and will reflect the true desires of the Filipino people,” Mr. Panelo said.

Meanwhile, the PNP said that 24 individuals have been arrested for alleged vote-buying since January 13.

“As of today, based on the reports forwarded dito sa (here at the) National Election Monitoring Center, all in all, we have arrested 24 persons already. Merong dalawang nakatakas na hinahanap ng ating mga pulis (two escaped and the police are searching for them),” said PNP Director of Operations Police Major General Mao Aplasca at a press briefing on Friday, May 10 at Camp Crame, Quezon City.

Mr. Aplasca said that these incidents were reported in Region IV-A and the Cordillera Administrative Region.

The PNP has created 105 special teams against vote buying. — Arjay L. Balinbin with Vince Angelo C. Ferreras

Comelec assures it will be ready for the polls despite hitches

THE Commission on Elections (Comelec) said that despite some mishaps surrounding the preparations in the days before the May 13 elections, it will be able to address them on time.

On Friday, the Poll Body’s spokesperson James B. Jimenez said that recent reports of corrupted SD Cards which will be used in the automated election system (AES) should not worry anyone. He announced at a 6 p.m. briefing that there are 686 corrupted SD cards.

He added that when an SD Card is corrupted, “We respond by having replacement cards. This will be swapped with the corrupted SD Cards… so we do not issue out new SD cards unless we have the corrupted SD Cards.”

The Comelec has 85,769 back up SD Cards ready for scenarios like this. Mr. Jimenez said that a few days before the elections will allow them time to address the issue.

The Comelec spokesperson also reported that the poll body’s online precinct finder should also be available by Monday. It is currently working with the Department of Information and Communications Technology (DICT) on issues over the precinct finder being unavailable to many voters.

“This was relayed to the DICT. They’re the ones who are doing the program. I’ve been told it’s been remedied so we’re undergoing testing again… later on, we will release the official link of the precinct finder,” said Mr. Jimenez.

In another election related development, the Comelec has also mapped out its plans for the Random Manual Audit (RMA) that it will be conducting after the May 13 elections. The Philippine Statistics Authority (PSA) developed an Automated Random Selection program for the random determination of municipalities/cities and clustered precincts which will participate in the RMA.

The votes that will be audited are those for Senator, Mayor, and House of representative (HOR) district members. The RMA will start on May 15.

“This is just auditing how the machines will perform. This has nothing to do with specific positions… we will only look at three positions,” said Comelec Commissioner Luie Tito F. Guia.

The Legal Network for Truthful Elections (LENTE) has been appointed as the lead convenor for the RMAs, replacing fellow election watchdog group National Movement for Free Elections (Namfrel) after it declined its accreditation as the Comelec’s RMA lead convenor. This after the Comelec declined to grant Namfrel access to election data without which, the watchdog group said, “diminishes the verifiability of data separately provided during the RMA.”

Meanwhile, former journalist the Rodrigo “Jiggy” D. Manicad, Jr., who is running for the Senate as an independent, filed a motion for the Comelec to allow watchers from political parties to monitor back up vote counting machines (VCMs) against possible vote rigging.

“Kailangan magpreserve ang integrity ng elections (We need to preserve the integrity of the elections),” he said to reporters as he filed an Urgent Ex-Parte Motion before the Comelec on Friday.

The Motion called for the Poll Body to allow poll watchers of not only Mr. Manicad’s party but also other political parties “to witness an inspection of, testing and sealing of and to monitor the Reserve Machines, on May 13, if they will be utilized for the elections, and to monitor the said machines until the final completion of the counting of votes.”

The Reserve Machines are only utilized in case the VCMs being used break down or fail to operate during the elections.

Despite there only being a few days left before the elections, Mr. Manicad said that this Motion is for the interest of everyone and can be used as a “precedent” to future elections.

The senatorial hopeful also said in his Motion that the Comelec should create “an inventory of all the Reserve Machines, and to disclose the locations of all the Reserve Machines” to watchers to ensure that the machines are not used during the elections unless needed.— Gillian M. Cortez

DoTr, Angkas to pilot test motorcycle taxis

THE Department of Transportation (DoTr) will be working with Angkas in a pilot test that will allow motorcycle taxis to temporarily operate in select areas across the country.

In a statement released Friday, the DoTr said the six-month pilot test for the general guidelines for motorcycle taxi operations in the Philippines will start in early June. It will be rolled out in Metro Manila and Metro Cebu. A public awareness campaign on the initiative is also set to commence concurrently.

“Ang isasagawang pilot implementation ng motorcycle taxi operations ang magsisilbing batayan ng mga panukalang batas sa Mataas at Mababang Kapulungan… kaugnay ng regulasyon ng motorcycle taxi industry sa bansa [The pilot implementation of motorcycle taxi operations will serve as a guide for legislation to be drafted by the Senate and House of Representatives… on regulating the motorcycle taxi industry in the country],” it said.

The recommendation comes from the technical working group (TWG) that the DoTr formed in December 2018, it said. The TWG has members from the Land Transportation Office, the Land Transportation Franchising and Regulatory Board, the Philippine National Police — Highway Patrol Group, the Metro Manila Development Authority, the Senate, the House of Representatives, commuter welfare groups, road safety advocates, motorcycle manufacturers, motorcycle organizations, and law schools.

The initiative came after a tug of war between the government and Angkas on whether to allow the motorcycle ride-hailing company to operate. The Land Transportation and Traffic Code, or Republic Act No. 4136, currently does not allow single motorcycles to operate for public transport.

“Patunay ito na nakikinig ang gobyerno sa publiko. Patunay ito na bukas ang aming mga isip, [This is proof that the government listens to the public. This is proof of our open-mindedness],” Transportation Secretary Arthur P. Tugade said in the statement on the pilot test for motorcycle taxis.

Among the guidelines set for the pilot test are a 10-hour limit for daily operations of a motorcycle taxi, and a 60-kilometers per hour speed limit. The use of safety gear and having accident insurance are also required.

The fares will be based on a matrix drafted by the TWG. In Metro Manila, the first two kilometers will cost P50, and every succeeding kilometer up to the seventh will cost P10. If the ride goes beyond seven kilometers, every additional kilometer will cost P15. A 1.5x surge cap will also be allowed in case of a rise in demand.

In Metro Cebu, the first kilometer will cost P20, with a P16-per-kilometer rate for the next eight kilometers. A ride beyond eight kilometers will cost P20 per additional kilometer.

In a statement, Angkas Chief Executive Officer Angeline Tham welcomed the development that moves the company closer to being allowed to operate full time.

“We hope that the Angkas pilot will serve to show legislators and regulators the viability of this mode of transport so we can fully pass it into a law. We are set to launch in June once all operating procedures are finalized, so sit tight,” she said. — Denise A. Valdez

Albay mayor wanted for Batocabe murder surrenders to police

POLICE confirmed that Daraga, Albay Mayor Carlwyn G. Baldo, the main suspect in the killing of Ako Bicol party-list Representative Rodel M. Batocabe and his security escort, surrendered on Friday morning to the authorities.

Criminal Investigation Division Group — Region 5 director Col. Arnold Ardiente told BusinessWorld that the mayor surrendered directly to the court at 8:30 a.m. and is now in the BJMP District Jail.

Accompanied by his family, Mr. Baldo voluntarily surrendered to Judge Ma. Therese San Juan-Loquillo of the Regional Trial Court 10 in Legazpi City, Albay.

Last month, the Department of Justice indicted Mr. Baldo and six others for the killing of Mr. Batocabe. The Daraga mayor is facing two counts of murder and six counts of attempted murder.

On Jan. 3, the Philippine National Police (PNP) tagged Mr. Baldo as the mastermind behind the assassination.

Christopher C. Naval, Mr. Baldo’s aide, surrendered to the police on Dec. 30 last year while Emmanuel Rosello was arrested on Jan. 3. The PNP said on Jan. 4 that the alleged main gunman, Henry Yuzon, surrendered to the authorities but was also arrested for a pending rape case. Jaywin Babor, the alleged driver of one of the getaway motorcycles, also surrendered to the authorities that day.

Mr. Batocabe, who had announced that he would run for mayor in the midterm elections, and his police escort SPO2 Orlando Diaz were killed during a gift-giving activity in Daraga on Dec. 22. — Vince Angelo C. Ferreras

PNP arrests 3 suspected members of Islamic State

THE Philippine National Police’s Criminal Investigation and Detection Group (CIDG) arrested three suspected members of the Islamic State (ISIS) — Daulah Islamiyah Ranao in separate operations at Parañaque City and Rizal province on Friday.

Norodin Abolkhair Manalinding and Cairo Gen Manatao Abolkhair, natives of Madaya Dilod in Marawi City, were nabbed during a surveillance operation at 3:30 a.m. in Baclaran, Parañaque City for violating RA 10591 or the Comprehensive Law on Firearms and Ammunition Regulation Act, RA 7166 or an Act Providing for Synchronized National and Local Elections and for Electoral Reforms, and RA 9516 or the Law on Explosives.

“Initial investigation revealed that Norodin Abolkhair Manalinding is allegedly the finance facilitator and recruiter of the said group,” said Lt. Col. Arnold C. Ibay, CIDG-National Capital Region director, at a press conference on May 10.

Authorities were able to seize the following from the two suspects: one 9mm pistol which had no serial number; one magazine; nine bullets; one fragmentation grenade; one .45 caliber pistol; one .45 magazine; six .45 caliber bullets; and one black tactical bag.

Arrested in another operation was Tagoranao Dimaro Sarip Jr. He was arrested at 6 a.m. at Cainta, Rizal through search warrants for violation of RA 10591 and RA 9516.

“Allegedly, Tagoranao is a propagandist and member of the media cell of ISIS responsible in spreading propaganda for the group,” said Mr. Ibay.

Seized from him were: one .45 caliber Colt pistol which had no serial number; one magazine for a .45 caliber pistol; four .45 caliber bullets; one hand grenade; one plastic box; one black flag; and one black sling bag. — Vince Angelo C. Ferreras

‘Bikoy’ charged for beauty pageant estafa

A CRIMINAL complaint of estafa was filed against Peter Joemel Advincula — the man who claims to be “Bikoy,” the man behind the viral “Ang Totoong Narcolist” videos — for organizing a beauty pageant and later disappearing without giving the prizes to the winners.

In a three-page complaint, Arven E. Valmores of Ardeur World Marketing said Mr. Advincula used his corporate name and logo for the promotion of the beauty pageant in 2018 without his consent.

Mr. Valmores noted in his complaint that Mr. Advincula did not attend the coronation night and became unreachable after leaving the winners and the production staff unpaid.

“Being nowhere to be found, all the pageants big winners and production staff started to communicate with the complainant and sought redress of the grievances and unpaid prizes and wages,” the complaint read.

Feeling the pressure and the possible negative impact on his business, Mr. Valmores said he was forced to shell out P304,422 to pay the winners and staff.

“Respondent became untraceable and efforts to locate him to answer for his misrepresentation remained until recently where he resurfaced in a press conference at the Integrated Bar of the Philippines offices last May 6, 2019,” the complaint noted.

Meanwhile, the Philippine National Police said that manhunt for Mr. Advincula has been underway since May 8.

“The manhunt operation is underway to find him and to serve the pending warrants of arrest against Advincula and his cohorts for estafa issued by Judge Leody M. Opolinto of the Municipal Trial Court of La Trinidad, Benguet on Sept 26, 2007, and for Large Scale Illegal Recruitment issued by Regional Trial Court Third Branch of Baguio City on Aug. 10, 2007,” said PNP chief Gen. Oscar D. Albayalde in a statement on Friday.

“It appears that Advincula has been using different names to hide his real identity such as R.B. Santos, John Paul Rafael Benedict Santos, Arcangel de Leon or Archie Santos, Lory Camba, and Jaime Gaupo, Jr.,” he added. — Vince Angelo C. Ferreras

MinDA’s Abul Khayr Alonto, 73

DAVAO CITY — Secretary Abul Khayr D. Alonto, the first Muslim to head the Mindanao Development Authority (MinDA), died on the evening of May 9.

He was 73.

“A life dedicated to advance the lives of all Mindanaoans, Secretary Alonto selflessly and relentlessly fought for Mindanao until the end, a true warrior for development and advocate of peace,” MinDA said in a statement.

The Marawi City-born Mr. Alonto — one of the sons of the first Lanao del Sur governor and ambassador Abdul Ghaffur Madki Alangadi Alonto, and Bai Hajja Rasmia Indol Dangcal — was a rebel leader in his youth.

He headed the Lam Alif group, whose members and he would later become leaders of the Moro National Liberation Front (MNLF).

“Secretary Alonto, in an unprecedented margin was elected as Vice-Mayor of Marawi City in 1972 and was subsequently awarded as the youngest city executive of the country during that year. As Acting City Mayor of Marawi in 1974, before being sworn in as the city’s chief executive, he joined his MNLF comrades and went ‘underground’ to fight against the abuses committed during the Martial Law regime,” reads his profile on the MinDA site.

By 1979, following the signing of the Philippine government-MNLF Tripoli Agreement in 1976, he participated in the institutionalization of the autonomous region in Mindanao.

He was appointed MinDA chair in September 2016 by President Rodrigo R. Duterte, his schoolmate at San Beda College.

Romeo M. Montenegro, MinDA’s deputy executive director, posted on his social media account that it was his honor to have shared Mr. Alonto’s vision and passion for Mindanao.

“You taught us to challenge our limits and to emulate your audacity to bring forth action. Mindanao has lost a fighter, and MinDA lost a leader,” Mr. Montenegro wrote.

In a text message to BusinessWorld, Davao City Chamber of Commerce and Industries, Inc. President Arturo M. Milan said Mr. Alonto “will be remembered for his unwavering support for the chamber and the business community in Mindanao.”

As head of MinDA, Mr. Alonto pushed for key infrastructure projects and a more equitable share of the national budget for Mindanao.

One of the projects he was particularly excited about was the railway system, which he envisioned as a uniting tool for Mindanao.

In a forum in November 2017, Mr. Alonto said: “If a person can have his breakfast in Zamboanga, eat his lunch in Iligan, then dinner in Davao, that is the one, connected and united Mindanao we envision. That is home.” — Carmelito Q. Francisco

BSP to look at growth as it considers further rate cuts

THE COUNTRY’S economic outlook and the peso’s stability will be the key deciding factors for the Bangko Sentral ng Pilipinas (BSP) in further cutting its policy rates and reducing banks’ reserve requirement, think tank Fitch Solutions said in an analysis.

The central bank’s Monetary Board on Thursday cut benchmark interest rates by 25 basis points (bps) in its third policy review for the year, hours after the Philippine Statistics Authority (PSA) reported that the economy grew at the slowest clip in four years last quarter and two days after the PSA said inflation eased to the slowest pace in 16 months in April.

“With trade-related risks still a threat…, the Philippines government and the BSP will look to loosen policy further if growth shows limited signs of recovering,” Fitch Solutions said.

“We at Fitch Solutions will be reviewing our monetary policy forecast over the coming days, following the BSP’s cut. Key to the BSP’s decision to ease further will be the stability of the Philippine peso over the coming months and the outlook for growth,” it added.

Philippine gross domestic product (GDP) grew by 5.6% in the first quarter, its worst performance in four years, the PSA reported on Thursday. The first-quarter outcome was lower than the 6.3% in the preceding quarter and 6.5% in the same period in 2018.

“The slowdown in growth reflects the external headwinds faced by the Philippines economy but also the limited domestic fiscal support and the impact of tighter monetary policy in Q1,” the think tank said.

Fitch Solutions said the economy will likely benefit from stronger government consumption in the coming months following the approval of the 2019 spending plan.

“The BSP may also seek to ease reserve requirements or its policy rate even further, given that inflationary pressures have now receded to within its target band,” it said.

BSP Governor Benjamin E. Diokno said on Thursday the Monetary Board will discuss a potential reserve requirement cut at its weekly meeting next week.

Fitch Solutions sees the economy growing by 6.1% this year, down from the 6.2% print in 2018.

Malacañang on Friday said it expects higher GDP growth in the next quarters despite the 5.6% outcome in the first three months of the year.

“We expect higher growth in the next few quarters as the Build Build Build Infrastructure Program starts to gather steam and domestic consumption, as a result of deflation, starts to pick up,” Presidential Spokesperson Salvador S. Panelo said in a statement on Friday.

“The delay in our infrastructure program because of the budget deadlock during the first quarter is now a thing of the past. Soaring inflation has been decisively addressed. We expect higher growth in the next few quarters as the Build Build Build Infrastructure Program starts to gather steam and domestic consumption, as a result of deflation, starts to pick up,” Mr. Panelo said. — RJNI and ALB

TUCP files wage petitions for three more regions

AFTER filing a petition earlier this week before the Central Visayas wage board for a P386 minimum wage increase, the Trade Union Congress of the Philippines (TUCP) has demanded more pay hikes in three different regions.

The TUCP said in a statement on Friday that it filed three different wage petitions before the Regional Tripartite Wages and Productivity Boards (RTWPBs) of Region 3 (Central Luzon), Region 4-A (CALABARZON covering Cavite, Laguna, Batangas, Rizal and Quezon), and Region 10 (Northern Mindanao), “emphasizing urgent attention to prevalence of nutrition deficiency among Filipino workers and their families due to severely diminished take home pay.”

A P768 across-the-board wage increase for private sector minimum wage earners was petitioned before the Central Luzon and CALABARZON wage boards, while P782 was demanded in the Northern Mindanao RTWPB.

Daily minimum wages in each of the regions are at P284-P400 for Central Luzon; P303-P400 for CALABARZON; and P331-365 for Northern Mindanao.

The labor group used the Pinggang Pinoy model as one of their basis for the wage hike petition. The Pinggang Pinoy model is a framework that provides the prescribed nutrition needed for Filipinos daily.

“Using DOST’s Pinggang Pinoy model and the March 2019 PSA (Philippine Statistics Authority) Media Service Market Price of Selected Commodities, Ateneo Policy Center calculates daily food requirement in the amount of P734.00 for a family of four or P61.17/meal/person. A family of five would then require a daily right food budget of P917.50,” the petitions said.

“If we continue to ignore the fact that workers and their families subsist on nutritionally deficient meals for a long period, we will all definitely have bigger problems if we have vast army of undernourished Filipino workers which is detrimental to the country that prided itself with skilled, dynamic and perceptive workers not to mention the cost of healthcare,” TUCP President Raymond C. Mendoza said in a statement.

Late last month, TUCP filed for a wage hike petition of P710 for Metro Manila private sector minimum wage earners on top of the P500-P537 daily salary.

The labor group said the petition was denied by the NCR RTWPB this week, but the Metro Manila wage board has yet to issue a statement on the matter.

Under the law, wage hike petitions can only be entertained after at least 12 months since an issuance of a region’s wage order unless there is a supervening condition observed by the wage board which is subject to approval of the National Wages and Productivity Commission.

Central Luzon issued their last wage order on Aug. 1, while Northern Mindanao’s wage order took effect last Nov. 1, both under the prescribed 12-month period before a wage board issues an increase.

Meanwhile, CALABARZON’s last wage order already had its anniversary last April 28. — G.M. Cortez

PHL, Mexico to wrap up bilateral negotiations

THE PHILIPPINES and Mexico are set to conclude negotiations for agreements on air services, disaster risk management, and the establishment of a Joint Economic Committee (JEC), according to the Department of Foreign Affairs (DFA).

The DFA also announced on Friday that the two countries have agreed to work on the “full implementation” of signed agreements on tourism and counter-narcotics efforts.

“The Philippines and Mexico successfully held their 2nd Bilateral Consultation Mechanism Meeting (BCM), the first to be held at the Secretariat of Foreign Affairs in Mexico City on 06 May 2019,” the DFA said in a statement.

The meeting was led by Foreign Affairs Undersecretary for Policy Enrique A. Manalo and Mexican Undersecretary of Foreign Affairs Julián Ventura, together with their respective delegations.

Leaders from both sides “agreed to work on the full implementation of signed agreements on combating illicit trafficking of narcotic drugs, and tourism, and committed to conclude negotiations on pending agreements on air services, integral disaster risk management, and the establishment of a Joint Economic Committee (JEC)” which aims to further the bilateral trade and investment.

They discussed “bilateral political, economic, and socio-cultural issues” and other “pressing regional and multilateral issues” as a means to deepen over six decades of diplomatic relations between the Philippines and Mexico.

The DFA said both countries engaged in “open and frank discussions,” identifying specific measures to be undertaken to boost bilateral trade and investments and increase socio-cultural exchanges by implementing cultural and sports cooperation programs.

They also determined specific steps to promote new areas of cooperation in “agriculture and exchange of best practices on consular matters and in the provision of assistance to nationals during the BCM.”

The leaders likewise exchanged views on regional developments in Asia and Latin America, including on the Association of South East Asian Nations, Asia-Pacific Economic Forum, and the Pacific Alliance, the DFA said.

The DFA said Manila will host the next BCM. The exact place and schedule will be “mutually agreed upon at a later date.” — A.L. Balinbin

Property, telco units push Ayala Q1 profit 5% higher

CATHY ROSE A. GARCIA

By Arra B. Francia, Senior Reporter

EARNINGS of Ayala Corp. (AC) increased by five percent in the first quarter of 2019, driven by the strong performance of its property, banking, and telco units, complemented by gains from the merger of its education arm with the Yuchengco group.

In a statement issued Friday, the listed conglomerate said net income attributable to the parent hit P8.03 billion from January to March, as equity earnings contribution of its business units rose seven percent to P9.9 billion.

Globe Telecom, Inc. increased its contribution to the parent by 44%, while Ayala Land, Inc. (ALI) and Bank of the Philippine Islands (BPI) grew their contributions by 15% and five percent, respectively.

“Our first-quarter results show the advantages of a diversified portfolio. The strong performance of Ayala Land, Globe, and BPI offset the challenges from Manila Water’s water supply issues and the market conditions facing AC Industrials,” AC President and Chief Operating Officer Fernando Zobel de Ayala said in a statement.

AC also recognized net accounting gains of P1 billion from AC Education’s merger with iPeople, Inc. It now has a 33.5% stake in the Yuchengco-led company.

Consolidated revenues meanwhile reached P74.34 billion, five percent higher year on year.

ALI expanded its net income by 12% to P7.3 billion for the quarter, on the back of a seven percent in revenues to P39.7 billion. The property developer reported a four percent uptick in revenues from property development to P26.1 billon. The continued strong demand from local and overseas Filipinos also drove sales reservations higher by eight percent to P34.1 billion.

From the commercial leasing side, revenues went up 19% to P9.2 billion after the opening of new malls, offices, hotels, and resorts. The company now has 1.9 million square meters (sq.m.) in total mall gross leasable area (GLA) and 1.1 million sq.m. in office GLA.

BPI’s net income was up eight percent to P6.72 billion, as revenues grew 23.5% to P22.78 billion boosted by the strong performance of its core banking business. Net interest income improved by 29% to P16.1 billion, supported by an 8.8% increase in average asset base.

Globe realized a 44% uptick in net income to P6.7 billion, primarily due to the strong subscriber usage in data-related services from mobile, corporate, and home broadband segments.

Consolidated service revenues of the telco operator added 13% to P36 billion, benefiting from its rollout of its modernized 4G/LTE network which provides customers with faster downloads and web browsing experiences.

Meanwhile, Manila Water’s bottomline was affected by the water shortage in its Manila concession, dropping 27% to P1.2 billion for the quarter. Its operating expenses surged 39% to P2.46 billion due to the penalty imposed by the Metropolitan Waterworks and Sewerage System worth P534 million for “its inability to meet its service obligations to provide 24/7 water supply to its consumers in accordance with the concession agreement.”

AC Energy’s net income also plunged to 99.6% to P2.5 million, against P593 million seen in the same period a year ago. The decline was due to higher interest expenses from its green bond issuance, a lower wind regime, and the scheduled outage of a thermal plant.

The industrial unit was likewise weighed down by general market conditions and recorded a net loss of P332 million.

“The ongoing global market slowdown, startup losses from its newly acquired businesses, and weaker sales of its automotive retail distribution segment pulled AC Industrials’ performance,” the company said.

Shares in AC added 0.11% or P1 to close at P890 each at the stock exchange on Friday.

SMC plans tender offer for Holcim PHL minority shareholders

DIVERSIFIED conglomerate San Miguel Corp. (SMC) will have to conduct a tender offer to minority shareholders of Holcim Philippines, Inc. (HPI) in relation to its $2.15-billion acquisition of the listed cement manufacturer.

SMC disclosed on Friday that it will acquire 5.531 million common shares in HPI, representing 85.73% of the company’s total outstanding and issued capital stock.

The acquisition will be made through First Stronghold Cement Industries, Inc., a wholly-owned unit of SMC’s subsidiary San Miguel Equity Investments, Inc.

“As a result of the Transaction, the Purchaser is required to conduct a tender offer of the shares of HPI held by its minority shareholders who hold 14.27% of the total issued and outstanding capital stock of HPI,” SMC said.

SMC said it plans to request for exemptive relief with the Securities and Exchange Commission (SEC) to allow the tender offer to be conducted after the final purchase price has been determined and paid.

The company said the purchase price was negotiated and determined based on the valuation of HPI’s business through a discounted cash flow method, “as well as other methodologies customary for transactions of this nature.”

The $2.15-billion purchase price is also inclusive of fees for transitional service arrangements.

In a separate statement, HPI’s parent LafargeHolcim said it expects to close the transaction by the fourth quarter of 2019 and is seen to improve its debt ratio by around 0.3 times.

The group’s sale of its Philippine assets follows its divestment from Indonesia, Malaysia, and Singapore, worth a total enterprise value of $4.9 billion.

“With the divestment of our activities in the Philippines, we are completing our exit from the increasingly hyper competitive arena in South East Asia. While this decision is based on our strategic portfolio review, we have reached very attractive valuations allowing us to achieve a new level of financial strength,” LafargeHolcim Chief Executive Officer Jan Jenisch said in a statement.

The transaction also require the approval of the Philippine Competition Commission (PCC), as it exceeded the transaction value of mergers and acquisitions that should be reported.

“The PCC has not yet received the notification by San Miguel Corp or Holcim / LaFarge Philippines for mandatory review. The parties have 30 days after signing of their definitive agreement to submit the notification,” PCC Chairman Arsenio M. Balisacan said in a text message on Friday.

“The transaction shall be treated as a separate review given our ongoing enforcement case in the cement industry.”

Shares in SMC dropped 2.81% or P5.50 to close at P190 each at the stock exchange on Friday, while shares in HPI jumped 6.10% or 88 centavos to close at P15.30 apiece. — Arra B. Francia with input from Janina C. Lim

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