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PCC approves three merger, acquisition plans

THE Philippine Competition Commission (PCC) has approved three merger and acquisition transactions in the real estate, housing and manufacturing sectors.
Citing a decision dated July 24, the antitrust body said it found no competition concerns in three deals namely Alveo Land Corp.’s acquisition of properties from Antel Land Holdings, Inc. in Makati City; a joint venture between Century Properties Group, Inc. and Mitsubishi Corp.; and the purchase of shares by Aisin Seiki Co. Ltd. of Toyota Autoparts Philippines, Inc. (TAP) from Toyota Motor Corp. (TMC).
For the Alveo and Antel transaction, the former, a wholly-owned subsidiary of Ayala Land, Inc., is eyeing to acquire Antel’s 1.3-hectare land and assets, including the A.Venue Mall, in Makati City.
“PCC found that the transaction does not result in substantial lessening of competition (SLC) in the market of medium-cost residential condominiums in Makati and BGC, Taguig,” the agency said.
“The review also found that there were sufficient number of competitors in the said market and that there was no ability nor incentive for Alveo to foreclose the property to be acquired,” it added.
Alveo is a real estate firm engaged in the planning and development of residential, business, commercial and leisure real estate properties.
Antel, on the other hand, is a local holding company in the business of purchasing, leasing, selling and development of real estate properties.
Meanwhile, the Century Property-Mitsubishi joint venture involves the development, construction and sale of residential properties on parcels of land in Tanza, Cavite.
Both companies will invest through the purchase and subscription of shares in a new company named PHirst Park Homes, to be incorporated with the Securities and Exchange Commission.
“PCC found no competition concerns in this transaction since that there are numerous firms that remain engaged in the residential real estate development within the identified geographic market. These competitors are seen to exert competitive pressures on the parties after the transaction,” the antitrust agency said.
Century Properties is engaged in mixed-use developments and the real estate industry, while Mitsubishi has diversified businesses in development, infrastructure and technology.
Lastly, for the Aisin Seiki-Toyota Parts transaction, the former will purchase additional shares of TMC’s TMP, which will make Aisin Seiki a majority shareholder of TAP.
The PCC also did not find any SLC in the car parts market should this transaction push through.
Aisin and its subsidiaries manufacture and sell automotive parts, lifestyle- and energy-related products and wellness-related products.
Meanwhile, TMC and its subsidiaries, are involved in the production and sales of automobiles, financial services, housing and information technology.
These three latest approved transactions bring PCC-cleared mergers and acquisitions to 143 deals.
To date, the PCC has received a total of 151 merger filings worth P2.36 million in transaction value from both local and international companies. Of this total, 43 involve global firms. — J. C. Lim

Medical City chair denies claims of ‘hostile takeover’

By Arra B. Francia, Reporter

TMC Chairman Augusto P. Sarmiento — THEMEDICALCITY.COM

THE CHAIRMAN of The Medical City (TMC) denied claims that the medical institution’s foreign investor group is set to mount a “hostile takeover” during its annual shareholders’ meeting (ASM), alleging instead that the postponement of the annual assembly is a “ploy” orchestrated by its chief executive officer (CEO) to stay in power.
TMC Chairman Augusto P. Sarmiento clarified that there is no such attempt from its group of foreign investors consisting of Singapore-based Clermont group — brought in by TMC Executive Vice President and Chief Operating Officer Jose Xavier B. Gonzales back in 2013 — Viva Holdings (Philippines) Pte. Ltd., Viva Healthcare Ltd., and Fountel Corp.
“Fountel and Viva have been with us for five years. There has never been any indication or instance where they have made any attempt, no matter how trivial, to take over management,” Mr. Sarmiento told BusinessWorld in an interview in Mandaluyong on Tuesday.
Instead of a takeover, Mr. Sarmiento noted the foreign investor group has been the one injecting necessary funds for TMC’s operations, citing a recent P963-million capital infusion for the institution.
To recall, TMC’s board room battle came into light after TMC President and CEO Alfredo R.A. Bengzon filed a complaint with the Securities and Exchange Commission (SEC) asking for intervention and the indefinite postponement of the company’s ASM scheduled on June 14, lest the foreign investors’ group led by Mr. Gonzales attempt a hostile takeover of TMC.
Mr. Bengzon claimed that he was unaware of the Corporate and Shareholders Agreement (CSA) between TMC and the Clermont group, which should void its acquisition of up to 54% of the company’s shares.
This is contrary to Mr. Sarmiento and Mr. Gonzales’ claims that the CSA is publicly available, given that the ownership changes were registered with the SEC in 2013.
In addition, Mr. Sarmiento said Mr. Bengzon has gone behind his back “in an attempt to change the TMC’s Trust Agreement to have precedence over me as a trustee.”
“It was undeniable that it was a ploy, a well-studied attempt… for the purpose of full control and power by him. He wants to remain in his position,” Mr. Sarmiento said.
Mr. Sarmiento also noted that the company is now suffering from the mismanagement of its operations in Guam Regional Medical City, the CEO of which was appointed by Mr. Bengzon. From an initial investment of P11 billion, the Guam facility has already incurred P21.6 billion in expenses for the putting up of a single 130-bed hospital.
While its hospital in Guam is said to be profitable on paper, Mr. Gonzales said there have been issues on collection. For instance, while TMC had P2.5-billion in receivables by the end of November 2016, only 28% was collected, prompting the hospital to write off P1.8 billion.
Mr. Sarmiento said that holding the ASM is crucial in resolving these matters, and called on Mr. Bengzon to withdraw his petition with the SEC.
“I would like for Dr. Bengzon to think about the wisdom of withdrawing his petition to the SEC, which I think shareholders deserve and would resolve problems triggered by what he has done,” Mr. Sarmiento said.

Malacañang OK’s merger of PhilEXIM, HGC

MALACAÑANG has green-lit Home Guaranty Corporation (HGC) and the Philippine Export-Import Credit Agency (PhilEXIM) as it continues to rationalize the operations of state-owned firms.
The Palace has issued Executive Order No. 58, signed by President Rodrigo R. Duterte on July 23, which approves the merger of the HGC and PhilEXIM, with the latter as the surviving entity.
Under the order, the government also mandated the transfer to PhilEXIM of the guarantee functions, programs and funds of the Small Business Corporation (SBC), the administration of the Agricultural Guarantee Fund Pool (AGFP) and the Industrial Guarantee and Loan Fund (IGLF).
PhilEXIM will be renamed Philippine Guarantee Corporation to reflect the merged guarantee functions it will take on.
The EO noted that the transfer of guarantee functions to the PhilEXIM will prevent redundancies, standardize policies, processes and procedures for similar initiatives, facilitate approvals, lower costs and help the government monitor these programs better, among others.
PhilEXIM is an attached agency of the Department of Finance (DoF) and was created to provide guarantees to facilitate foreign loans for the needs of export-oriented industries, public utilities and those registered with the Board of Investments.
Meanwhile, HGC, an attached agency of the Housing and Urban Development Coordinating Council, guarantees the payment of mortgages, loans, and other credit facilities and receivables arising from residential contracts.
For its part, the SBC assists micro, small and medium enterprises in finance and marketing, among others. Meanwhile, the AGFP is designed to mitigate risks in agriculture lending, while the IGLF is a re-lending and guarantee fund for SMEs.
The DoF was tasked to implement the merger and transfer of the guarantee functions, programs and funds in consultation with the related agencies the order said.
The EO must be implemented within one year from its effectivity, it said.
Under the order, the authorized capital stock of the PhilEXIM will be increased to P50 billion from P10 billion.
“The equity contributions of the National Government to the HGC, IGLF and AGFP, shall be transferred to the PhiEXIM to form part of its paid-up capital. Subject to prior coordination with the Department of Budget and Management,” the EO said.
Any balance in the required paid-up capital will come from the government’s budget.
The EO also provides for the separation incentive pay for all qualified officers and employees to be affected by the merger, in addition to retirement or separation benefits allowed under existing laws and regulations.
Ahead of the merger, PhilEXIM Vice President Rovi M. Peralta said the firm’s expanded coverage could favor more SMEs which the agency was initially meant to serve.
“When we were created, we were supposed to cater to the SMEs. However, business evolved and then it shifted to more on the priority projects which are big projects,” Ms. Peralta said last week.
She noted that the priority sectors include agricultural modernization, manufacturing, infrastructure and supply chain logistics, among others.
“So we will be able to tap more the small and medium with the consolidation that will happen soon,” she added. — with a report from J. C. Lim

Progress seen in talks for Voyager

PLDT, Inc. is expecting progress in its talks with partners for its digital innovations unit Voyager Innovations, Inc. in weeks’ time.
PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan told reporters in Makati City on Tuesday it is looking to secure a strategic partnership with an undisclosed number of companies, after its talks with Chinese tech giant Tencent Holdings Ltd. failed in May.
“There are a few initiatives underway on Voyager, so we hope something will happen in the next few weeks,” he said.
While he refused to disclose the names and the number of companies they were talking with, Mr. Pangilinan said the company is based in Asia.
The PLDT chief said last year the company is looking to boost Voyager by getting strategic and non-strategic partners by the first half of 2018 that will help its “capital-hungry” nature.
After not receiving feedback from Tencent when PLDT contacted it to become a strategic partner, Mr. Pangilinan then said the company expected to move forward without a partner for Voyager.
“We’re assuming at least for the moment that we will not have a strategic partner and we will proceed with our own plans with Voyager,” he said in May.
Voyager is targeting 30 million users in its platform by 2020. As of December 2017, it recorded eight million users in PayMaya Philippines, Inc. and Smart Money. The PLDT unit also manages FINTQ, Lendr, and freenet.
The Pangilinan-led company saw a 39% increase in its net income for the first quarter, landing P6.9 billion from only P5 billion in the same period last year. It was driven by a growth in consolidated core income by 13% at P6 billion from P5.33 in 2017.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Artificial intelligence adoption in the region rising — IDC study

ADOPTION of artificial intelligence (AI) in Southeast Asia is on the rise, according to a survey conducted by leading IT market research and advisory firm IDC.
Based on the IDC Asia/Pacific Enterprise Cognitive/AI survey, AI adoption rates stand at 14% across Southeast Asia as compared to just 8% last year, marking a clear move by companies to embed some form of AI/cognitive intelligence into their operations.
The survey found the discovery of better business insights as the primary growth driver of firms adopting the technology, revealing a maturity in the way the region is harnessing AI to enhance their business. Other growth drivers this year are enhanced process automation (51%), and improved productivity (42%).
Indonesia leads the pack in terms of adoption with 24.6% of organizations in adopting AI.
The top use cases in Southeast Asia include algorithmic market forecasting (17%), and automated asset and infrastructure management (11%).
“With its positive impact already visible across banking, manufacturing, health care and government, there are clear opportunities for more organizations in Southeast Asia to leverage AI to create differentiating value,” Chwee Kan Chua, Global Research Director, Big Data and Analytics and Cognitive/AI, IDC Asia/Pacific, said in a statement.
“We expect investments in AI to continue to rise, as more organizations begin to understand the benefits of embedding AI into their business and how data and analytics can help uncover new insights. Organizations that do not incorporate AI in their business operations will lose out to their AI-enabled peers who will benefit from the greater predictability, efficiency and innovation that advanced analytics can bring.”
Despite the rise in adoption, organizations in the region are trailing behind those in north Asian countries, in terms of making AI a strategic agenda. For example, more than 80% of companies in China and South Korea believe AI capabilities will be critical for organizations’ success and competitiveness in the coming years, while less than 40% of companies in Singapore and Malaysia agree with the same.
Lack of skills and knowledge (23%) and high cost of solutioning (23%) are also among the most frequent barriers to adoption named by survey respondents.
While the overall adoption in Southeast Asia falls behind Asia-Pacific (excluding Japan), IDC said there are signs that suggest organizations in the region will catch up quickly. For example, 35% of organizations in Singapore have plans to adopt AI within two years, the highest among Asia/Pacific countries.
In solidifying their strategy to turn AI into a differentiator for the business, the survey showed that companies find data from sales, commerce and marketing to be the most ready, followed by that from customer service and support operations, and IT, security & risk operations.
“Across the globe, we are already seeing the powerful transformative effect of AI on industries and cities. Automated AI systems, based on analytics, are making it easier for organizations to incorporate AI in their business.  Today AI can help solve complex problems and uncover insights that were previously unknown, at a much faster speed and greater scale than was possible,” said Ryan Guadalquiver, Country Manager, SAS Philippines.
“Turning AI into a strategic differentiator need not be a daunting task. Organizations can seek the right partner to help build the right tools, processes and technologies to operationalize analytics to achieve the desired business outcomes.”
The IDC Asia/Pacific Enterprise Cognitive/AI survey is an annual study undertaken to understand adoption trends, challenges and key barriers, and business priorities in the space. In 2018, a total of 502 executives and IT line-of-business heads across Asia Pacific (excluding Japan), were surveyed including 146 respondents from Southeast Asia (Singapore, Malaysia, Indonesia, Thailand).

Globe offers home broadband services to DMCI unit owners

GLOBE TELECOM, Inc. is partnering with DMCI Homes, Inc. to offer easy subscription to Globe At Home services exclusive to DMCI condominium owners.
In a statement on Wednesday, the telecommunications giant said residents at The Birchwood and Ivory Wood in Taguig City, Asteria Residences in Parañaque City and Lumiere Residences and Sheridan Towers in Pasig City may now apply for subscription to Globe’s services directly through DMCI Homes.
It noted that Internet connection has now become a basic necessity, hence fitting to be among the offers bundled with ownership of property.
“When you think about it, you want the basic necessities in life, such as water and electricity, ready when you move into your new home… The same thing is now the case with internet — it has become a utility that homeowners need,” Globe’s GTM & Business Development Director for Broadband Michelle Marie Fernandez-Castillo said in the statement.
DMCI Homes Assistant Vice President for Marketing, Customer Care and Corporate Planning Januel Mikel O. Venturanza echoed the same sentiment, saying “It’s important for owners nowadays to have an internet connection at home so we thought of making it available once they move into their units.”
In June, Globe announced it will roll out its fifth-generation (5G) Globe At Home service by second quarter of 2019, in partnership with Huawei Technologies Ltd. The 5G integration is expected to allow the company to render internet speeds from 50 megabits per second (Mbps) to 100 Mbps through Air Fiber technology.
The Ayala-led company posted a 27% rise in attributable net income during the first quarter at P4.7 billion on the back of higher earnings.
Globe shares lost P19 or 1.06% to finish at P1,780 each on Wednesday. — Denise A. Valdez

Twitter curbs access for over 100,000 apps

WASHINGTON — Twitter said Tuesday it had removed more than 143,000 apps from the messaging service since April in a fresh crackdown on “malicious” activity from automated accounts.
The San Francisco-based social network said it was tightening access to its application programming interfaces (APIs) that allows developers to make automated Twitter posts.
“We’re committed to providing access to our platform to developers whose products and services make Twitter a better place,” said Twitter senior product management director Rob Johnson.
“However, recognizing the challenges facing Twitter and the public — from spam and malicious automation to surveillance and invasions of privacy — we’re taking additional steps to ensure that our developer platform works in service of the overall health of conversation on Twitter.”
Johnson offered no details on the revoked apps, but Twitter has been under pressure over automated accounts or “bots” which spread misinformation or falsely amplify a person or political cause.
“We do not tolerate the use of our APIs to produce spam, manipulate conversations, or invade the privacy of people using Twitter,” he said.
“We’re continuing to invest in building out improved tools and processes to help us stop malicious apps faster and more efficiently.”
As of Tuesday, any developer seeking access to create a Twitter app will have to go through a new application process, providing details of how they will use the service.
Automated accounts are not always malicious — some are designed to tweet our emergency alerts, art exhibits or the release of a Netflix program — but “bots” have been blamed for spreading hoaxes and misinformation in a bid to manipulate public opinion. — AFP

Uratex to open 3 factories, 2 showrooms in VisMin

POLYFOAM Chemical Corp. is expanding its presence in the Visayas and Mindanao. — URATEX.COM

CEBU CITY — Polyfoam Chemical Corp., maker of the Uratex Foam brand, is expanding its presence in the Visayas and Mindanao with the opening of three factories and two showrooms this year.
Stephen Brian C. Lee, company sales director, told BusinessWorld that the company is focusing on the central and southern parts of the country because “these areas are the growing markets.”
“We believe in the Visayas and Mindanao markets as our biggest growth areas, so we need to explore them by seeing to it that our outlets are near (the) possible buyers,” said Mr. Lee at the launching in Cebu of actor-athlete Matteo F. Guidicelli as brand endorser.
Mr. Lee also said that while Uratex, a part of the RGC Group of Companies, continues to look for more sites, they are also working on the “challenge in logistics” in these areas.
The Visayas and Mindanao, he added, currently account for about 40% of the company’s total market.
The factories that will be opened this year are in Bacolod City, Negros Occidental in the Visayas and the cities of General Santos and Butuan in Mindanao.
New showrooms will also be launched in Bacolod and Tacloban, both in the Visayas.
The Luzon market “has been saturated,” Mr. Lee added.
Marketing Director Cherry Wong-Tan, for her part, said, “We want to continue expanding to fulfill the goal of our founder,” referring to the late Robert G. Cheng who, together with wife Natividad, started the business about 50 years ago.
Tom R. Cruz, general manager for Mindanao operations, said the company has continued to innovate to provide the market with both durable and trendy products.
“We are among the few companies in the country that have put premium attention to research and development because this is among our strengths,” Mr. Cruz said. — Carmelito Q. Francisco

Spending a rainy evening talking about democracy and whisky

By Joseph L. Garcia Reporter
“YOUR CONCERN is human rights, mine is human lives,” said the President during his State of The Nation Address on Monday, despite the extrajudicial killings that have come to identify his administration. Earlier that day, former president Gloria Macapagal-Arroyo, herself mired with the scandals of her nine-year term, took her seat as the House of Representatives’ new Speaker. Don’t these two events just make you want to take a long, hard drink of democracy?
This reporter trooped to a bar called Demokrasya in Quezon City’s Maginhawa Street as the rains raged and the demonstrators began to pack up. The bar only has an inverted sun as a sign, the same sun depicted in the first official Filipino flag used by the Katipuneros in 1897. The word “Demokrasya” is curiously missing from the bar’s entrance.
Jio Capinpin, the bar’s Operations Manager, welcomed BusinessWorld with three drinks: the Maginoo, the Watawat, and Mi Ultimo Adios. On the side, Mr. Capinpin served homemade longanisa (sausage) poppers which had a pronounced flavor of black pepper and just a tiny hint of aniseed. Mr. Capinpin’s kitchen doesn’t offer much in terms of meals and the bar chow list is quite spartan with the longanisa poppers being the heftiest item. Chicharon (pork cracklings), a streetfood platter, and other such items can also be found on the menu. “Our kitchen is quite small, so for us to make a bigger menu could… be a bit difficult,” he said. The whole bar can fit maybe 30 people, standing up.
Mr. Capinpin is one of the partners behind the bar, which opened just a month ago. He shares the bar’s responsibilities with brothers Ryan and Martti Uy (himself the CEO of Plato.ph), among others. The whole bunch are all below 30 years old.
“Initially, what Martti thought of was, he wanted a place where people can gather and talk… basically have discussions, share ideas,” said Mr. Capinpin.
If one takes a sip of the Maginoo cocktail, a scotch and soda and then some, Mr. Uy’s vision of flowing conversations can certainly come true. The drink has the ease and refreshment of a polished bon vivant, yet has a brooding vein of darkness with the underlying note of whisky.
Speaking of whisky, the bar boasts of its house-blended whiskies: think of it as a second-blended whisky. The Uy brothers are apparently fans of the spirt, and played around with the blended whiskies they had on hand. The result is a drink that tastes familiar, yet conceals several layers of flavor from the different blends that slowly unfold with each sip. It’s quite an experience, and while this reporter tried to play a guessing game with Mr. Capinpin on which whiskies were present in the blend, he coyly refused to name any that went into the mix.
After that, BusinessWorld took a sip from Mi Ultimo Adios, named after the poem national hero Jose Rizal wrote right before his execution in 1896. This one’s a killer with lambanog (coconut vodka), gin, tequila, and rum, with chili peppers as a garnish. The drink’s earthy taste brings to mind parched, cracked earth slowly being revived by a summer rain. However, the worst isn’t over: as you keep sipping, the chilies slowly release their oils, gradually adding heat to the drink until the very last drop, and by then you’re panting for something sweeter.
BusinessWorld then got to work on the Watawat, a drink which has all the colors of the Philippine flag, thanks to dashes of grenadine, then blue curacao. A slice of lemon is used as a garnish to serve as the sun on the flag. As if a commentary on Philippine politics, Mr. Capinpin bade me to stir the drink, which turned the whole thing black. And yet, despite the darkness in the glass, the drink still tasted quite sweet — we’ll hope that’s what it means for the country also.
While this reporter had reservations about the Watawat’s taste, this drink seems to summarize the bar’s concept. The bar is smart and Filipino: not the idealized Filipino in a barong Tagalog, but the real Filipinos out there working and making a name for themselves, with the dignity of the nation’s past propping them up.
Quiet music from Filipino alternative bands of this decade is piped in from speakers, making it easy for me to hear Mr. Capinpin’s next words. “That’s the whole idea,” he said about the bar. “Let’s engage in conversations.” Conversations, he said, are a way of getting ideas, passing information, and gaining new knowledge. With the proliferation of fake news in the country, and even in the world, a long, honest conversation between well-informed people becomes a weapon. “What we really want here is for people to just come here and have conversations that we’re supposed to have.”

Harry Potter will help kids learn to code with London start-up Kano

HARRY POTTER never learned computer code, but a London-based start-up plans to help Muggle children do so with the famous wizard’s help.
Aspiring young developers will be able to use a new coding kit developed by Kano, which includes a physical magic wand that responds to movement in the hand, to learn how to recreate some of the magic spells seen in the popular movies, such as Wingardium Leviosa and Stupefy.
When it’s released in October through a partnership with Warner Bros., Kano’s Harry Potter coding kit will cost $99 and introduce children to programming languages such as JavaScript, which has real-world uses in modern web design and software development. Kano, founded in 2013, makes do-it-yourself computer-building kits for kids — or anyone — and has its own online platform where people can create games.
Alex Klein, cofounder and chief executive officer of Kano, said the magic wand kit was conceived after executives at Walmart, Inc., which sells the start-up’s products in the US, were intrigued by the company’s movement sensor products.
“Our Walmart associates suggested we show it to Warner Brothers, as the in-air interaction had the feeling of magic, and they knew Harry Potter was growing,” Klein said via e-mail.
During a visit to the entertainment company’s Los Angeles studio in 2017, Klein said he suggested there was “a connection between our world, where a small class of secretive ‘wizards’ command the realms of computing, code, and machine learning — and the rest of us are stuck as befuddled Muggles,” referring to the non-magical inhabitants of the Harry Potter universe.
Encouraging children to code has become a big business focus for many companies. In June, Mattel, Inc. introduced Robotics Engineer Barbie. In addition to a purple laptop for the polymath fashion doll, the toy also helps kids learn code via a partnership with Tynker, a game-based educational platform. Lego Boost was created by the Danish brick-building company’s new CEO, Niels B. Christiansen, in part to give kids access to a new way to learn computer programming, but also to help reverse a slump in sales.
Governments are pushing harder to make such skills accessible. In 2015, New York City Mayor Bill de Blasio promised that by 2025, every public school student in the city would be learning computer science. In Britain, the subject has been part of the national curriculum for children as young as 5 years old since 2014. While in China, parents have been signing their kids up to preschool coding classes for years.“Young people should learn to code to enable them to become confident tech builders, curators and makers,” said Adam Freeman, cofounder of British digital skills firm Freeformers. “All career, profession or life choices will benefit from this skill and mind-set.”
Kano, was founded in 2013 by ex-journalist Alex Klein, his uncle and venture capitalist Saul Klein, and Yonatan Raz-Fridman. To date it’s received about $37 million in venture capital funding. — Bloomberg

RFM absorbs three subsidiaries

RFM Corp. is folding three subsidiaries into its portfolio in a bid to achieve efficiency in operations.
In a disclosure to the stock exchange on Wednesday, the listed ice cream and pasta manufacturer said its board of directors has approved the company’s merger with Cabuyao Logistics Industrial Corp., Interbake Commissary Corp., and Invest Asia Corp., with RFM as the surviving entity.
The company said the integration of the four firms’ administrative facilities will result in economies of scale and efficiency of operations, while the consolidation of their assets will also make the procurement of financing and credit facilities more favorable.
It added that the merger will allow for more productive use of the respective corporations’ properties.
RFM will be calling for a special stockholders’ meeting on Sept. 7 to secure approval from its shareholders.
The company’s attributable profit reached P314 million in the second quarter of 2018, 1.2% higher than what it generated in the same period a year ago. Revenues meanwhile climbed 13% to P3.5 billion for the period. This brought the RFM’s first-half attributable profit 3% higher to P525 million, driven by an 11.6% increase in revenues to P6.31 billion.
The company expects to book a double-digit growth in revenues and high single-digit increase in net income for the entire year.
Incorporated in 1957 originally as Republic Flour Mills, Inc., RFM’s business is divided into two segments: the institutional segment for the flour, bakery, and other bakery products to institutional customers, and the consumer segment that manufactures and sells ice cream, milk, juices, pasta, and other rice-based mixes. Its brands include Selecta for ice cream, Fiesta and Royal for pasta, and White King mixes and Selecta Milk.
Shares in RFM picked up 0.85% or four centavos to close at P4.74 each at the stock exchange on Wednesday. — Arra B. Francia

Singapore’s Michelin starred chicken place opens in the Philippines


CHAN HONG MENG, a cook with roots in the farm, couldn’t have dreamed that his soy sauce chicken and noodle offerings would earn him fame in the culinary world. In 2016, his Liao Fan Hawker Chan stall was granted a Michelin star in Singapore’s first Michelin Guide. Now, Hawker Chan is present in the Philippines, with its first branch opening later this week in SM Mall of Asia.
BusinessWorld, in a press preview of the dishes, sat down to taste this chicken that earned a star, and alongside it, endless lines of people that snake up to a waiting time of two hours. The chicken had a soft, vulnerable skin, all too willing to give in to the diner’s bite. The chicken’s flesh is soft, flavorful, and yielding; with a strong taste of Asia from this region’s favorite condiment, soy sauce.
Hawker Chan’s char siu, meanwhile, had a char that gave a contrast to the gooey, sweetish pork fat.
In all honesty though, there are several other chicken places out there, but for the novelty of eating a version of a Michelin-starred meal, by all means, take a number and line up. Otherwise, I’m really going for the char siu.
Hawker Chan was brought here by Foodee Global Concepts Inc., which also holds the franchises for restaurants that have Michelin stars in their own countries: there’s Tim Ho Wan, Foo’d by Davide Oldani, Tsuta Japanese Soba Noodles, and Kam’s Roast Goose.
Hawker Chan has the distinction of having the cheapest Michelin-starred meals, at only about $3. The Philippine counterpart sells its wares at about the same price, at P128-P148. “If you consider just the food, [even] a hawker can make it [in the business],” said Foodee Global CEO Rikki Dee.
He seems to be very confident about the Philippine restaurant market, considering that beginning with Tsuta, all of the outlets that Foodee has since opened were spaced out in just a few months — the taste of their recent openings still lingers on my tongue.
“The market has matured,” said Mr. Dee. “Filipinos are very up-to-date with the latest trends in the food scene. As long as you price it right, and you have good food, I think you’ll make it.” — Joseph L. Garcia