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Hotshots go for 2-0 series lead over Beermen today

HAVING DRAWN first blood in their best-of-seven PBA Philippine Cup finals series last time around, the Magnolia Hotshots Pambansang Manok look to double up on the San Miguel Beermen in Game Two today at the Smart Araneta Coliseum.

Fashioned out a gutsy 99-94 victory in the series opener on Wednesday, the Hotshots try to continue rolling and move further closer to dethroning the Beermen as champions of the season-opening Philippine Basketball Association tournament.

In Game One, Magnolia banked on a total team effort on both ends of the court as it successfully overcame San Miguel, which got a monster game from reigning league most valuable player June Mar Fajardo.

Paul Lee led six players in double digits in scoring for the Hotshots with 18 points, followed by Ian Sangalang and Mark Barroca with 17 apiece.

Jio Jalalon had 16 and Rafi Reavis and Justin Melton finished with 12 and 11 points, respectively.

Magnolia stood firm down the stretch and continuously frustrated the charge of San Miguel in booking the win.

Mr. Fajardo showed the way for the Beermen with 35 points and 21 rebounds.

Alex Cabagnot, meanwhile, had 18 points with Arwind Santos tallying 13 points and 15 boards for San Miguel, which is out to claim a fifth straight All-Filipino title.

“We’ll just be ready for Game Two. I think San Miguel will make the adjustments after today. We, too, have to adjust especially our perimeter defense,” said Magnolia coach Chito Victolero after Game One.

“One win does not win a series. We have experienced being down in a series and there is still long way to go,” he added.

For the Beermen, they said they hope to play better in the next game, especially with their shooting percentage and shot selection, to improve their chances in games.

“We are lucky this is not a knockout game and we have a chance to adjust. Credit to Magnolia’s defense for making it tough for us tonight,” said San Miguel coach Leo Austria.

“We will watch the tape and see what we can do for the next game,” he added.

Game Two of the finals is set for 7 p.m. — Michael Angelo S. Murillo

Filipina overcomes extreme weather to finish the 78o North Marathon

BEATS extreme cold in marathon near North Pole. Filipina runner Joyette Jopson overcame all odds and conquered the grueling 42-kilometer 78° North Marathon held near the North Pole last April 16.

Jopson — triathlete, 2014 Ironman 70.3 Philippines Filipino Elite Champion and FWD Financial Wealth Officer — became the very first Filipina to run a marathon in the freezing temperature of Longyearbyen, Svalbard — a Norwegian archipelago in the Arctic Ocean.

Jopson and the FWD Team Asia runners ran amid a ruggedly icy terrain and freezing temperature. She finished the race with an impressive time of four hours, 10 minutes, and 59 seconds — good for third overall and first in the women’s group.

The lone Philippine representative in the marathon, Ms. Jopson joined other FWD runners from Hong Kong, Indonesia, Singapore, Japan, Vietnam, and Thailand in the marathon sponsored by the global FWD group. Her participation, in turn, was sponsored by insurance firm FWD Philippines.

“The FWD Group had initially been supporting the world’s ‘coolest’ marathon at the North Pole, returning as title sponsor for the third year in a row,” says Peter Grimes, FWD Philippines President and CEO.

“The Marathon was cancelled at the last minute because of geopolitical tensions between the Russian and Ukrainian administrations regarding flight plans to the Pole,” Grimes adds.

Undeterred, FWD stepped in with the idea to create and organize its own marathon at Longyearbyen, which they called the 78° North Marathon, so that runners could still fulfill their ambitions to complete a marathon in sub-zero temperatures and extreme winter conditions while raising funds for their sponsored charities. FWD successfully arranged the marathon against the odds in three hectic days, inviting all registered North Pole Marathon runners to take part.

IBF super flyweight champion Jerwin Ancajas has chance to reassert star in Funai fight — analyst

FOLLOWING “pedestrian” performances and outputs in his last two fights, International Boxing Federation super flyweight champion Jerwin “Pretty Boy” Ancajas should take the opportunity to reassert his star when he returns to the ring this weekend for his seventh title defense.

This is according to one local fight analyst who believes the Davao de Norte native Ancajas has lost some of the luster he had previously as a boxer after a couple of not-so-impressive outings of late and is in need of a fillip by way of an impressive and convincing victory.

Mr. Ancajas (30-1-2) is to face veteran and number one contender Ryuichi Funai of Japan at Stockton Arena in California for the former’s super flyweight title on May 5 (Manila time).

The Filipino champion is coming off a split draw result against Mexican Alejandro Santiago in September last year and a unanimous decision victory over compatriot Julius Sultan in May 2018, in a fight many thought Mr. Ancajas was underwhelming.

“After two-straight humdrum performances on American soil, it is a chance for Jerwin Ancajas to prove that his star is still on the rise and he can pull up the noose on his championship run. His luster as a boxer has come off in his last two bouts, including a forgettable decision win over Jonas Sultan and then a split draw against Alejandro Barrios. Against a 38-fight veteran like Ryuichi Funai, this is the right time for Ancajas to make an impression,” said fight analyst Nissi Icasiano when asked by BusinessWorld for his thoughts on the about-to-happen ring return of Mr. Ancajas.

Mr. Icasiano further said that the Ancajas of old — a fighter who is sure of his game plan and not second-guessing himself — should show up versus a dangerous opponent like Mr. Funai (37-1).

“In his last fight, it was a far cry from the typical Jerwin Ancajas that we usually see in the ring. He was hesitating in stringing together his punches, and his signature movement was off that night. In addition, he had difficulties in pacifying Barrios, who managed to bully him over the course of 12 rounds,” the analyst said.

“If he wants to win in this fight, he has to look for the same rhythm that brought him success in his past fights, especially against a pressure fighter like Funai. A pugilist like Funai is tailor-made for a boxer like Jerwin Ancajas, but if he doesn’t impose his will and play with his strengths like in the fight against Barrios, it’s going to be another long and hard night for the Filipino,” Mr. Icasiano added.

In the lead-up to the fight, Mr. Ancajas and his team promised to be more prepared and made adjustments in the fighter’s training setup, including moving much of their training time to a Marine base in Ternate from its Survival Camp in Magallanes, Cavite, to allow Mr. Ancajas to focus more; engaging the services of a nutritionist to monitor his food intake; and employing a number of sparring partners to give him different looks and styles to take note from.

The Ancajas-Funai battle is part of the fight card staged by Top Rank and headlined by the IBF light heavyweight title clash between champion Artur Beter of Russia against challenger Radivoje Kalajdzic of Bosnia-Herzegovina.

Mr. Ancajas has been a champion since September 2016 when he defeated McJoe Arroyo of Puerto Rico.

The Ancajas-Funai will be broadcast over ABS-CBN S+A beginning at 10 a.m. on Sunday. — Michael Angelo S. Murillo

Gian Taylor shows great promise in Go For Gold Sunrise Sprint victory

Gian Taylor
Gian Taylor

GIAN Taylor tried his luck to reach a lofty goal of racing for Team Go For Gold and the national squad someday.

The 15-year-old triathlete from Malaybalay, Bukidnon moved a step closer to that direction when he ruled the male 12-17 category of the Go For Gold Sunrise Sprint recently in Naga, Cebu.

Taylor of Bukids Multisport arrived ahead of the field after completing the short-distance triathlon that serves as a qualifying race to earn a spot in the Go For Gold team in one hour, 11 minutes and 36 seconds.

“My biggest dream is to represent our country to the Olympics,” said Taylor, a Grade 9 student from San Isidro College High School in Bukidnon.

Renzo Mar Pahaganas checked in second in 1:21:43 to conquer the punishing 750-meter open-water swim, 20km bike and 5km run followed by third-placer Jericho Auguis (1:21:57).

There are actually five more races where the top male and female finishers get to earn a contract from Go For Gold, a chief backer of the men’s triathlon team.

“This came from our commitment to grow events in the Philippines which our athletes could join so they will have more opportunities to showcase their talent,” said Go For Gold godfather Jeremy Go.

After the race in Naga, Cebu, the next stop will be the Go For Gold SwimBikeRun.PH Aquaman at Vermosa Sports Hub on May 19 followed by the Go For Gold SBR PH Duaman in Nuvali on June 16.

Another Go For Gold Sunrise Sprint in Davao City on July 7 has been scheduled before winding it up with the Go For Gold SBR PH Triman-Clark on July 28 and the Go For Gold Sunrise Sprint-Subic on Nov. 4.

“A lot were sending me messages on how they could join the Go For Gold team. That’s why we came up with this selection process,” said Go, vice president for marketing of Powerball Marketing and Logistics Corp.

Go explained that the 10 fastest clockings in both men and women during the SBR races and the Go For Gold Sunrise Sprint open category would be rewarded with corresponding points according to their order of finish.

He added the winners, which will be announced after the Nov. 4 race, will receive a professional contract worth up to P100,000 plus a Storck bike and a specially crafted Go For Gold trophy.

Strong 2nd quarter defense guides Blazers past Nuggets

LOS ANGELES — CJ McCollum scored 20 points, Enes Kanter had 15 points and nine rebounds, and the Portland Trail Blazers beat the host Denver Nuggets 97-90 in Game 2 of their Western Conference semifinal series on Wednesday night.

Rodney Hood added 15 points while Damian Lillard scored 14 for the Blazers, who evened the series at 1-1. Al-Farouq Aminu contributed 11 points and 10 rebounds, and Zach Collins scored 10 points.

Nikola Jokic had 16 points and 14 rebounds, and Jamal Murray scored 15 points for Denver. The Nuggets got 14 points and 11 rebounds from Paul Millsap, 13 points from Malik Beasley and 12 points from Gary Harris.

The next two games will be in Portland on Friday and Sunday.

Denver forward Torrey Craig sustained a nose injury when he fell into the leg of teammate Monte Morris early in the second quarter and was bleeding profusely. He was helped to the locker room and returned to the bench in the second half wearing a clear mask. He came back into the game late in the third quarter.

Portland forward Maurice Harkless didn’t play in the second half after rolling his right ankle late in the second quarter.

Portland took control with a dominant defensive second quarter. The Blazers held Denver to just 12 points in the period and 5-of-23 shooting from the floor. The Nuggets went scoreless over the last 4:01 and missed all 10 of their 3-point attempts in the period.

Denver missed its last eight shots and 10 of its last 11 of the quarter to go into halftime trailing 50-35.

The Nuggets twice got the deficit under 10 in the third quarter, but the Blazers answered each charge and led by 14 heading into the fourth quarter.

Denver made another run in the final period. After Seth Curry hit a 3-pointer to put Portland ahead 86-71 with 9:24 left, the Nuggets went on a 10-2 run over the next four minutes to get within seven.

The hosts had a chance to cut into the deficit more, but Harris missed a 3-point attempt. McCollum and Murray traded 3-pointers, and after Denver missed two free throws, Hood hit a corner 3-pointer to make it 94-84 with 2:02 left.

Jokic’s layup with 34.9 seconds remaining got the Nuggets within 95-90. After a Portland turnover, Jokic missed a 3-point try that would have cut the deficit to two. Hood sealed the result with two free throws. — Reuters

Homecourt advantage

Considering the outstanding play of four-time All-Star Damian Lillard, fans can be forgiven for forgetting that the Blazers are no one-man team. True, he was the single biggest reason the Blazers upended the Thunder in the first round; he thoroughly outplayed former league Most Valuable Player Russell Westbrook throughout the five-game series. That said, the capacity of the conference third seeds to go deep in the postseason depends as much on the rest of their roster as on its acknowledged leader. In their current set-to against the Nuggets, for instance, the conscious effort to send multiple defenders his way compels the rest of the black and red to step up.

Against this backdrop, the Blazers wound up showing their worth yesterday. By all accounts, Lillard had a subpar outing; after scoring a whopping 39 points off 21 shots in Game One of their semifinal-round series, he found himself limited to 14 off 17. No matter, though, because he walked off with a win, anyway. And, for this, credit goes to teammates who coolly compensated for his off-night; for all his travails, he joined members of the starting lineup that all finished on the right side of plus-minus logs. Longtime backcourt partner C.J. McCollum got 20 off timely baskets. Late-season pickup Enes Kanter put up 15 and gave Nuggets stalwart Nikola Jokic fits on defense. Al-Farouq Aminu stayed constantly active on switch-all coverages. Even up-and-down Rodney Hood was an x-factor off the bench, getting 15 markers in 27 solid minutes of exposure.

That six Blazers ultimately claimed double figures in a winning score of 97 speaks volumes of their value in the grand scheme of things. Admittedly, they will go only so far as Lillard can take them; that’s simply the nature of competition in the superstar-driven National Basketball Association. Still, Game Two underscored that they have the requisite skill sets to execute head coach Terry Stotts’ plans and keep plodding on when things aren’t hunky dory. Yesterday, they could have easily folded in the fourth quarter, when the Nuggets came up with offensive rebound after offensive rebound — and 14 all told — to negate seemingly well-defended sequences. Instead, they hung tough and protected enough of their double-digit lead to ultimately prevail.

The Blazers now have homecourt advantage against the Nuggets, and they’ll be aiming to consolidate their road win with another at the Moda Center this weekend. They’re confident of doing so; not for nothing did they have the third-best regular-season home record in the league. They may not match the opposition in talent, but they have Lillard, and, perhaps more importantly, they have resolve. And, as the playoffs have so far highlighted, they’re good enough to ride on one or the other to prevail.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Gov’t tightens foreign worker controls

THE GOVERNMENT on Wednesday tightened rules on permits for foreigners to work in the country, amid reports of thousands of such nationals illegally hired in the gaming industry and even in construction who could be depriving the state of more than P30 billion in income tax each year.

The Department of Labor and Employment (DoLE), the Department of Justice (DoJ), the Bureau of Immigration (BI) and the Bureau of Internal Revenue (BIR) signed the joint “Guidelines on the Issuance of Work and Employment Permits to Foreign Nationals” at an event in San Fernando, Pampanga.

The guidelines were issued to “to clarify and harmonize existing regulations on the issuance of appropriate permits to all foreign nationals who intend to work, perform specific activities, and/or render services in the Philippines, whether in the context of an employment arrangement or otherwise.”

Two foreign business leaders said they were generally open to the new rules, provided they will not make it harder to do business.

Among others, foreigners seeking work permits will now have to indicate their Taxpayer Identification Number in their application. “Ang bago diyan ay… kailangan mag-submit ng foreigner ng tax identification number. ‘Yan ay isang paraan para matiyak natin na pag nagtatrabaho ang foreigner natin ay nagbabayad ng buwis (In that way, we can make sure that foreign workers will pay tax),” Labor Secretary Silvestre H. Bello III told reporters in a briefing after signing ceremonies.

The new requirements cover those applying for alien employment permits (AEPs), special working permits (SWPs) and provisional working permits (PWPs), but not those seeking special temporary permits (STPs).

DoLE issues AEPs to foreigners under contract with a Philippine-based business after it is determined that the job cannot be done by a Filipino, while the BI issues PWPs to foreigners waiting for issuance of AEPs and SWPs for foreigners to engage in work outside of an employment contract.

STPs are issued by the Professional Regulation Commission to foreign professionals to practice in the Philippines for a limited period, subject to limitations and conditions under law.

The same guidelines also listed occupations covered by SWPs, namely: professional athletes, coaches, trainers and assistants; international performers with exceptional abilities; artists, performers and their staff who perform before an audience for a fee; service suppliers coming primarily to perform temporary services and who do not receive salary or other remuneration from a Philippine source other than expenses connected to their temporary stay; treasure hunters authorized by relevant government offices to search for hidden treasure; movie and television crews authorized by relevant government offices to film in the country; foreign journalists practicing their profession or covering a specific event in the country; trainees assigned in government institutions, government-owned and -controlled corporations, and private entities; lecturers, researchers, trainers and others pursuing academic work who are assigned in schools, universities, educational and research institutions, government agencies and other entities (with or without compensation); religious missionaries and preachers; commercial models and talents; culinary specialists and chefs; professionals; as well as consultants or specialists.

“Initially kasi wala tayong (we did not have) restrictions on type of employment, ng work na pwedeng ibigay sa (that can be given to) foreign nationals para sa (under) special work permit, so any type could be given a special work permit,” BI spokesperson Dana Krizia M. Sandoval explained in a mobile phone message.

“But because we saw that there is a need to tighten our procedure following the increase of the number of foreign nationals in the Philippines, we coordinated with DoLE; so we discussed this in several meetings and we came up with these 14 professions na pwede nating bigyan ng (for which we can issue) special working permit.”

John D. Forbes, senior adviser of American Chamber of Commerce of the Philippines, Inc., said by phone: “I think there is an expectation that… whatever the guidelines are, [they] will result in faster processing of applications by regulatory agencies.”

British Chamber of Commerce Philippines Chairperson Chris Nelson said, also by phone: “I’ve read the announcements myself and what they (government) said was they want to… make the guidelines easier and support ease of doing business. So, if that’s the case… we support any measures that would support the ease of doing business.” — Gillian M. Cortez and Vann Marlo M. Villegas

Hiring, labor turnover eases

By Marissa Mae M. Ramos
Researcher

LABOR turnover at the country’s large firms eased in the fourth quarter as hiring slowed, according to a report by the Philippine Statistics Authority (PSA).

Preliminary results from the PSA’s Labor Turnover Survey showed that the labor turnover rate — the difference between the rates of accession and separation within firms — settled at 0.6% during the three months to December, slower than the downward-revised 0.8% in the third quarter of 2018.

This means that for every 1,000 persons employed, large firms were hiring six additional workers on a net basis in the fourth quarter.

The rate of accession — which represents hiring by employers to either replace former employees or expand their work force — stood at 8% in the fourth quarter, down from 9.5% in the preceding quarter.

The rate of separation — covering termination and resignation — stood at 7.5%, also down from 8.7% in the previous survey period.

Breaking down the accession rate, more people were hired in the fourth quarter due to business expansion at 4.2% compared to those who were employed as replacement for former employees at 3.8%.

For the separation rate, employee-initiated separation or resignations stood at 4.3% while the rate of employer-initiated separation or layoffs was 3.1%.

In an e-mail, Rizal Commercial Banking Corp. (RCBC) economist Michael L. Ricafort said that sustained net job creation despite higher inflation last year “fundamentally reflects” the relatively fast expansion of the Philippine economy in 2018 at 6.2% that — despite a slowdown from 2017’s 6.7% — still made it among the fastest-growing economies in Southeast Asia.

“[T]he country’s improved economic and credit fundamentals in recent years… as well as the country’s improved demographics, make the country an attractive market or destination for foreign investments that create more local employment,” Mr. Ricafort said.

The agriculture, forestry and fishing sector’s accession rate of 6.8% outpaced its separation rate of 4.2%, resulting in a labor turnover rate of 2.5%.

Mr. Ricafort saw the sector’s net positive job creation as an improvement in the fourth quarter following damage caused by Typhoon Ompong on Sept. 15, 2018.

Services also saw a net job creation rate of 1.2% with an 8.5% accession rate and 7.2% separation rate. With the exception of professional, scientific, and technical activities (-2.3%); real estate activities (-0.3%); and “other service activities” (-0.1%), all other service subsectors recorded positive turnover rates.

On the other hand, industry posted a negative job creation rate (-1.7%) with a 6.8% accession rate versus a 8.5% separation rate.

Pulling down the sector were negative turnover rates in construction (-3.4%); manufacturing (-1.6%); and mining and quarrying (-1.4%).

“The negative turnover in the industry sector may reflect some slowdown in manufacturing and other industries especially [for] some exporters and importers that were adversely affected by slower global economic growth and global trade largely due to the US-China trade war as well as by Brexit uncertainties,” Mr. Ricafort said.

For this year, Mr. Ricafort expects recovery from key sectors due to higher infrastructure spending from the government’s “Build, Build, Build” program.

“Sustained growth in OFW (overseas Filipino workers) remittances, BPO (business process outsourcing) revenues, foreign tourism, and net foreign direct investments… would all sustain the relatively faster economic growth of the Philippines compared to most of the other Asian countries and fundamentally entail the creation of more local jobs/employment and business opportunities as well,” he added.

Jury out on best wage framework

By Charmaine A. Tadalan
Reporter

SETTING the country’s minimum wage per region each year has always left neither party — employers or workers — satisfied, and the jury is out on a better option that would yield results acceptable to both sectors.

One economist suggested the replacement of the region-based daily minimum wage system with one based on industry.

“The best practice talaga (really), I would hope for one, industry wage-setting. ‘Yung iba (others call for) national minimum wage, ‘yung iba regional wage, pero i-relate naman natin sa industry kasi iba-iba ang requirements (might vary according to industry),” Rene E. Ofreneo, professor emeritus of the University of the Philippines School of Labor and Industrial Relations, said in a telephone interview on Wednesday.

“Maganda ‘yung wage-setting, budgeting related to productivity and technology upgrading (would be preferable). Dapat connect-connect ‘yan (Those elements should be connected).”

While both the Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP) and Employers Confederation of the Philippines (ECoP) agreed that such a practice would be ideal, they expressed reservations.

“It’s also a possibility, it’s also worth exploring; but ang problema d’yan ay (The problem is) disparity — baka mamaya lahat ng mga graduates natin dito na pupunta dahil malaki ang sweldo (all our graduates may just go where the pay is bigger). But it’s worth exploring kung ano ba ang (what is) acceptable and applicable dito sa atin (to us),” ALU-TUCP Spokesperson Alan A. Tanjusay said in an interview at a media forum in Malate, Manila on Wednesday.

Also sought for comment, ECoP President Sergio R. Ortiz-Luis, Jr. said in a separate phone interview, “it’s easier said than done, but I think to implement that would be very very difficult; hindi madaling (not easy to do) mag-industry setting.”

Mr. Ortiz-Luis also explained the current regional setting is in place to encourage investments in areas outside Metro Manila. “Ang main reason is the national policy to disperse from urban area ‘yung mga enterprises. Kung pare-pareho ang sweldo (If pay is uniform) nationwide, what would encourage people to invest in Samar, rather than in Manila?”

ALU-TUCP had also proposed to abolish the current system and instead institutionalize a living wage system.

“I think it has to be abolished because it’s a race to the bottom,” Mr. Tanjusay said. “Instead we should institutionalize living wage.”

He defined living wage as one that meets the needs of a family for a decent life, instead of just basic nutrition.

“Ito ang aming susubukan i-work out (This is something we hope to work out) with the government and businesses,” he said, noting the ALU-TUCP will likely push for its legislation.

But ECoP insisted that the existing regional wage-setting scheme would still better than leaving the decision to lawmakers.

“The reality is hindi naman tama na nagse-set ng minimum wage eh. Dapat talaga collective bargaining, but pakonti nang pakonti ang unionized company natin for some reason (The reality is minimum wage-setting is not ideal. There should be collective bargaining, but the number of our unionized companies has been decreasing for some reason),” Mr. Ortiz-Luis said.

“It’s not the ideal one but it’s better than the alternative of legislature doing it because it can be very political and it can be very emotional if it is legislated by our Congress.”

MerryMart set to open 10 stores this year as it eyes rapid growth

By Arra B. Francia, Senior Reporter

MERRYMART Grocery Centers, Inc. of businessman Edgar J. Sia II plans to open 10 stores this year before accelerating its expansion in the next decade.

“MerryMart is set to open its first 10 branches this year and we expect the rapid expansion to begin next year,” Mr. Sia said in an e-mailed reply to questions Wednesday.

The company opened its first MerryMart store earlier this week, located at the ground floor of DoubleDragon Plaza, DD Meridian Park in Pasay City.

“MerryMart emphasizes on providing the consumer a wide assortment of merchandise, maintaining competitive pricing and achieving excellent customer experience all the time,” MerryMart General Manager Ditas Taleon said in a statement.

Mr. Sia has set a “12-12-12 Vision 2030” target for MerryMart. This entails the rollout of 1,200 MerryMart branches nationwide in the next 12 years, with systemwide sales seen to reach P120 billion by the end of 2030.

The grocery retailer will have three formats depending on size, namely MerryMart Grocery, MerryMart Market, and MerryMart Store. The company expects to franchise the smaller formats to facilitate its expansion.

“We would like to take advantage of our group’s experience in franchising, and our familiarity of the Philippine market terrain, just like in the rollout of Mang Inasal, CityMall, Hotel101 and CentralHub network,” Mr. Sia said, referring to his businesses under listed firm DoubleDragon Properties Corp.

The opening of MerryMart marks Mr. Sia’s expansion of his family’s grocery retail business that started in Capiz.

“This is going back to our basics. My grandfather started his grocery store in the 1950’s in our hometown. My parents as well opened their own grocery business way back in 1989 and have been operating successfully for 30 years and counting. This background gives our family extensive experience in the retail business,” Mr. Sia said in a statement.

The company will also be setting up MerryMart warehouses and distribution centers to support the MerryMart retail shops. Mr. Sia said the intention is to locate them inside CentralHub warehouse complexes. DoubleDragon targets to have eight CentralHub locations by the end of next year.

“There are undeniable synergies between the real estate and retail businesses, and in our case, gladly the grocery retail have always been in our blood,” Mr. Sia said.

MerryMart is part of Injap Investments, Inc., also the parent of DoubleDragon. The company also owns People’s Hotel, a hotel targeted toward businessmen in Iloilo City; Hotel of Asia, Inc., which develops hotels under the Hotel 101 and JinJiang Inn; Deco’s Lapaz Batchoy, Inc., a restaurant with 10 stores in the Visayas region; as well as Mang Inasal Philippines, Inc.

AC Energy targeting to launch Phinma tender offer within Q2

By Victor V. Saulon, Sub-Editor

AC ENERGY, Inc. targets to launch in the next two months the mandatory tender offer to the minority shareholders of Phinma Energy Corp. to complete its acquisition of the company, its top official said.

“Siguro (Maybe) we’ll target second quarter, ’yung (the) tender offer,” Eric T. Francia, AC Energy president and chief executive officer, told reporters, adding that the next step would be to talk to the minority shareholders.

“We’re finalizing the pricing. We don’t know yet [if it’s going to be lower than the previously agreed price] because there’s a pricing adjustment formula we’ll need to apply based on the facts. So we’re still waiting for the pertinent data before we can finalize,” he added.

On Jan. 9, AC Energy announced that it had signed a “mutually strategic agreement” with Phinma Energy that gives the Ayala-led company a 51.48% stake in the listed firm for P3.42 billion. The price was based on the agreed valuation date of Dec. 31, 2018 and subject to adjustments.

On April 15, AC Energy said it had received approval from the Philippine Competition Commission (PCC) for its acquisition of Phinma, Inc.’s and Phinma Corp.’s combined 51.48% stake in Phinma Energy.

As part of the sale, AC Energy will subscribe to around P2.632 billion worth of primary shares of Phinma Energy at par value, which will result in a total stake for the Ayala group of around 68%, subject to the conduct of a tender offer for the shares of Phinma Energy’s minority shareholders.

“We haven’t launched it yet, but we’ll probably launch it soon. So that’s one of the next steps — to launch the tender,” Mr. Francia said. “The minority shareholders can sell to us at the same price.”

He said AC Energy would prefer to keep Phinma Energy listed at the stock exchange.

“That’s our intent [to keep Phinma Energy as a listed entity]. But if everyone tenders then we’ll be forced to keep it private or unlisted. So it really depends,” he said.

The choice to keep Phinma Energy listed is to give it flexibility, he added.

“That’s our preference — the flexibility. If we need the growth capital because of course we want to enhance, improve the performance. It’s been reported that it incurred negative income in 2018 so there’s work to be done,” Mr. Francia said.

“We want to keep the option flexible by having it listed. It’s easier to raise capital if you needed to. And of course, over time we’d like to grow that platform,” he said.

AirAsia Philippines swings to net operating loss in 2018

AIRASIA Philippines was hit by a rise in jet fuel prices and a weakening peso. — LEAN S. DAVAL, JR.

THE PHILIPPINE UNIT of the AirAsia Group Berhad, Philippines AirAsia, Inc., swung to a net operating loss of P2.11 billion in 2018 from a profit of P710 million in 2017 as it was hit by the rise in price of jet fuel and the weakening of the Philippine peso against the US dollar last year.

In the first quarter of 2019, AirAsia Philippines increased the number of passengers it carried by 23% to 1.97 million, as its capacity was bumped up 17% to 2.16 million.

“Despite the much higher fuel cost in FY2018 (fiscal year 2018), we still managed to add significant capacity in order to set the Group up for a dominant position in 2019. For this year, we are confident that Thailand, Indonesia and Philippines will make up for fuel cost hike in FY2018…,” AirAsia Group Berhad Deputy Group CEO Bo Lingam was quoted as saying in a statement.

AirAsia Philippines grew its revenue 31% in 2018 to P20.91 billion, but its expenses outpaced this increase, as its aircraft fuel expenses alone rose 74% to P8.93 billion. The depreciation of property, plant and equipment also cost the company P359.61 million, or an increase of 53% from in 2017. Maintenance and overhaul costs likewise expanded 41% to P4.18 billion.

“The Group expect to turn around Philippines by focusing on North Asia- Philippines leisure market with target load factor at 90%,” AirAsia Group Berhad said in a regulatory filing.

AirAsia Philippines recorded a load factor of 85% in end-2018. It has so far increased this to 91% in the first quarter, up 4 percentage points from 87% in the same period last year.

The group also noted that despite the challenges in 2018, AirAsia Philippines increased its domestic market share by four percentage points to 19.7% by end-2018.

“In 2019, digital innovation at airports and the delivery of excellent service will be priorities. The Philippines is in a good position to become the next tourism powerhouse in Asean with new airports, hotels and resorts integral to the government’s plan to bring in the numbers,” AirAsia Group Berhad said.

“For its part, our associate seeks to throw open the doors to the many splendours of the Philippines to others from the region and beyond…[W]ith the tenacity that it has demonstrated over the last seven years, we have no doubt that AirAsia Philippines will secure a more prominent place for its beloved country on the regional and international maps,” it added. — Denise A. Valdez

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