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BDO unit acquires rural bank in Bulacan

ONE Network Bank, Inc. (ONB) is acquiring Rural Bank of Pandi, Inc. (RBPI), which is expected to bolster its presence in Central Luzon.
In a regulatory filing Monday, BDO Unibank, Inc. said its rural banking arm has signed an agreement with the Bulacan-based lender to acquire its business and operations.
“The transaction is seen to provide ONB a stronger presence in the province and fast-track its expansion in Central Luzon, one of the most progressive areas in the country,” BDO said.
The transaction is still subject to closing conditions and regulatory approvals.
According to its website, RBPI was established by the Andres and Santos families in 1967.
RBPI operates 10 branches in Bulacan, including in Sta. Maria, Baliwag, Angat, Balagtas, San Miguel, San Jose del Monte, San Rafael and Bocaue in Bulacan.
It offers savings and time deposit accounts, as well as agricultural, commercial, industrial and other loans.
As of end-June 2018, the rural bank has total assets amounting to P1.31 billion. Total loans were at P775.68 million, while total deposits amounted to P1.05 billion.
In July 2015, BDO completed the acquisition of Davao-based ONB from the Consunji group. ONB operates 120 branches and over 220 automated teller machines, most of which are located in Mindanao.
As of end-June 2018, ONB was the biggest rural bank in the country in asset terms with P27.15 billion, central bank data showed. — Karl Angelo N. Vidal

KPO sector to drive office demand this year — Colliers

TRADITIONAL offices and knowledge process outsourcing (KPO) providers are seen to sustain the demand for office spaces in 2019, although the delay of accreditations by the Philippine Economic Zone Authority continue to pose a threat on their expansion in the country.
This is according to the fourth quarter 2018 Property Market Report of real estate consultancy services firm Colliers International Philippines, which noted that 33% of total net take-up of 1.18 million sq.m. in 2018 came from traditional firms, government agencies, and flexible workspace operators.
Meanwhile, KPO providers accounted for 27% of the net take-up, or around 381,000 square meters (sq.m.).
“Colliers sees the KPO sector driving office demand in the next 12 months. KPOs provide higher-value outsourcing services such as health information management, software engineering, and finance and accounting,” according to Colliers’ report prepared by Research Manager Joey Roi H. Bondoc.
Among the KPO companies that occupied space during the fourth quarter of 2018 are Infosys and AECOM, joining the ranks of Amazon and Google which are already holding office in Metro Manila.
“The entry and expansion of Amazon and Google indicates that Metro Manila is able to successfully compete for major KPO business.”
On the other hand, offshore gaming operators occupied about 303,000 sq.m of office spaces in 2018, or about 21% of total net take-up. This is slower than the sector’s share of 35% to 2017 net take-up.
“It might appear that there was a decline from the offshore gaming from 35% down to 21%, but if you look at the absolute figures, the offshore gaming sector continues to record high occupancy in Metro Manila,” Mr. Bondoc said during a presentation in Makati City on Wednesday, adding that offshore gaming operators have taken up 710,000 sq.m. since 2016.
Demand for more office spaces will likely continue in the next 12 months, with 28% of buildings due for completion this year are already 28% pre-leased, according to Colliers data. Based on pre-commitments, Alabang, Makati Central Business District, Fort Bonifacio, and the Bay Area are set to record the strongest take-up this year.
Colliers’ projected demand of about 1 million sq.m. this year will be able to absorb the 1.2 million sq.m. of new office space set to come online in 2019, leading to a vacancy of five percent by the end of the year.
Mr. Bondoc however pointed out that the main challenge for this year is the sustainability of these growth drivers. PEZA proclamations have been facing delays since 2016, which could hamper outsourcing firms’ interest to expand in the country given the lack of incentives.
The property consultant said that there are 805,000 sq.m. of office space in Metro Manila that are pending PEZA approval from 2016 to 2018, while there are 184,000 sq.m outside the metro.
Since 2016, buildings covering 586,000 sq.m were approved in Metro Manila, with only 62,000 sq.m. in Cebu.
“Colliers encourages the government to expedite the approval of PEZA applications to sustain the outsourcing sector’s growth. In our opinion, stakeholders such as developers and qualified occupants should aggressively call of the proclamation of new PEZA spaces in Metro Manila and provincial areas,” the company said. — Arra B. Francia

Key winners at the Grammys

LOS ANGELES — The Grammy Awards, the music industry’s highest honors, were handed out at a live ceremony in Los Angeles on Sunday hosted by R&B singer Alicia Keys.
The following is a list of winners in key categories:
• Album of the Year: Golden Hour, Kacey Musgraves
• Record of the Year: “This Is America,” Childish Gambino
• Song of the Year: “This Is America,” songwriters Donald Glover and Ludwig Goransson
• Best New Artist: Dua Lipa
• Best Pop Solo Performance: “Joanne (Where Do You Think You’re Goin’?),” Lady Gaga
• Best Pop Vocal Album: Sweetener, Ariana Grande
• Best Rap Album: Invasion of Privacy, Cardi B
• Best Country Album: Golden Hour, Kacey Musgraves
• Best Rock Album: From the Fires, Greta Van Fleet
• Best Music Video: “This is America,” Childish Gambino — Reuters

AAA Equities to launch online trading platform

AAA Southeast Equities, Inc. looks to attract more retail investors into the stock market with the launch of its online trading platform next month.
The local stock brokerage will be unveiling AAA Equities on March 1, where it will introduce standard online trading features with the additional option of being able to automatically execute trading strategies such as cut-losses and buying on breakouts.
“These are two fundamental strategies of any successful trader, and right now it’s very hard for anyone to do it because to do it you have to be physically at your computer at the exact moment that your stock hits the price when you’re cutting losses or buying the breakout,” AAA Equities President William Matthew M. Cabangon said in a press briefing in Makati on Monday.
Mr. Cabangon said that a trigger mechanism for such processes is currently unavailable at other brokerage firms, noting that this automated setup will allow investors to be prepared for the market’s movements.
The company’s online platform will also offer “off-hours orders,” where investors can set their strategies before the market opens. Orders will then be automatically sent to the exchange when the market opens.
AAA Equities is targeting retail investors for the online platform, since its traditional business currently caters to institutional investors.
“The target market really is online retail…(but not necessarily young investors) because the functionality is such a fundamental strategy for any investor that we think any investor online should be on this platform,” Mr. Cabangon explained.
The company highlighted the importance of encouraging more Filipinos to invest in the stock market, given its strong performance this year.
“We’re the second best performing stock market in the world in 2019, but if you ask the average person, they don’t really feel the effects. It’s in the best interest of Filipinos to be invested in the market, to take part in the growth that we’re experiencing,” Mr. Cabangon said.
AAA Equities projects the market to reach the 8,900 level by the end of the year, supported by easing local inflation, the US Federal Reserve’s decision to stop hiking interest rates, the easing of trade tensions between the US and China, as well as the consistent buying momentum of foreign investors in the local market.
“This year if everything goes well, I can see the PSEi going back to 8,900. This is a very reasonable target…So I think those three factors combined, along with the Philippines’ easing inflation will be a huge tailwind to our economy,” Mr. Cabangon said.
With the launch of its online trading platform, AAA Equities will join the roster of about 20 brokerage firms with an automated stock trading system. The company requires a minimum investment of P20,000 upon signing up. — Arra B. Francia

How pineapples inspired the design of RLC’s newest mall

By Zsarlene B. Chua
Reporter
ROBINSONS Land Corp. (RLC) ended 2018 by opening its 51st mall — the 80,000 square meter Robinsons Place Valencia in Valencia City, Bukidnon, a second-class city with a population of more than 20,000 people.
“Malaybalay might be the capital [of Bukidnon] but Valencia is the economic center,” Arlene G. Magtibay, general manager, commercial centers division of RLC, told BusinessWorld during the opening in December.
The mall was a long time coming, said Ms. Magtibay, as it took them a long time before finding a property suitable to build a mall in Valencia.
“Sometimes, even if we want to go to a certain city, the right property isn’t available — such was the case here,” she explained.
The wait was worth it as the mall, designed by Pasig-based Lichauco Guilas+Villanueva (LG+V) Architects, focused on creating open spaces, taking advantage of natural light and of course, paying homage to one of the province’s main produce — pineapple.
(It was in 1926 that American company Del Monte opened its first pineapple plantation in Asia which resulted in the 5,000-hectare plantation located in Manolo Fortich, Bukidnon, roughly two hours away from Valencia).
Valencia City is located almost three hours away from Malaybalay and has a climate similar to Baguio City due to its higher elevation — an average of 300 meters above sea level, although some parts reach as high as a kilometer above sea level.
The new mall’s facade features yellow accents with a pattern suggesting the skin of a pineapple, and because of the city’s cool weather, Robinsons Place Valencia features an open-air Skypark overlooking the Pantaron mountain range — which is said to offer a beautiful view of the golden rice fields during harvest season — and a koi pond.
The interiors also feature pineapple-inspired pillars while a sculpture by Manila-based artist Sam Penaso decorates the mall’s atrium. The work, titled Seven Tribes, celebrates the diversity and unity of ethnic tribal groups of Bukidnon: the Higaonon, Matigsalug, Manobo, Talaandig, Tigwahanon, and Umayamnon.
Dining options abound at the mall including Gerry’s Grill, Choobi Choobi, and Bigby’s, alongside Valencia City favorites including Hinam-Is, a cafe known for its homemade and Bukidnon-sourced desserts.
The mall also includes Robinsons’ anchor tenants including the supermarket, department store, Tom’s World, and Daiso Japan.
Ms. Magtibay also noted that they put six cinemas inside the mall — with one 3D cinema — so residents don’t need to travel for hours just to watch the newest releases.
In 2018, RLC opened four malls — Pavia in Iloilo, Ormoc in Leyte, Tuguegarao in Cagayan Valley, and Valencia in Bukidnon — bringing its total leasable area to 1.508 million square meters.
This year, the company is poised to open malls in San Pedro and Antipolo while expanding Robinsons Magnolia in Quezon City.

Asia’s Got Talent returns to AXN


A JAPANESE electronic music dancer, an Indonesian comb musician, and a 16-year-old contortionist from India each took their turn onstage. Their entrance and short introduction sparked curiosity, but when the music played, they all astounded the audience.
The third season of Asia’s Got Talent returns to AXN featuring talent from 17 countries. Returning as the show’s judges are 16-time Grammy award winner and music producer David Foster, French-Indonesian singer Anggun, and Korean multi-platinum recording artist Jay Park.
During a media preview of the third season’s first episode, three Filipino acts advanced to the next round: HK Sisters, a duo who sang their rendition of “Think of Me” from The Phantom of the Opera; Zeexhie, a father-daughter dance duo who performed with impressive stunts; and the 15-member dance crew Junior Good Vibes who wowed the judges with their synchronized routine.
Since the first season, the show has been a platform for Filipinos to showcase their talents to a wider audience. “It serves as a good platform for aspiring performers to be seen. Asia’s Got Talent serves as the opportunity for them to realize their dream. Just to be able to perform is already a win or success for them,” Armi Malaluan, Sony Pictures Philippines director and business head, told BusinessWorld shortly after last week’s preview in Shangri-La The Fort in BGC, Taguig City.
As in the first episode of the second season, Jay Park was the first judge to reward his golden buzzer. TK Jiang, a digital magician from Singapore, scored his chance at a slot in the semifinals after performing a magic trick where images of round fruits appear in 3D from a black tube after projecting them from a tablet.
“Asia’s Got Talent continues to be the region’s favorite entertainment reality series on TV and in the social sphere. It provides a powerful platform for aspiring performers to launch their careers, and we’re thrilled that many previous contestants have toured internationally as a result of Asia’s Got Talent, including season one winner, El Gamma Penumbra and last season’s winner, The Sacred Riana,” Virginia Lim, senior vice-president and general manager of Sony Pictures Television Networks Asia was quoted as saying in a press release.
“Asia’s Got Talent isn’t just about performing, it’s about the storytelling of diverse cultures that all unite on the region’s biggest stage in pursuit of one dream,” she added.
The show’s champion will win $100,000.
Asia’s Got Talent airs every Thursday at 8:30 p.m. on AXN. — Michelle Anne P. Soliman

SCG Philippines sees slower growth this year

THE Philippine unit of Thai conglomerate Siam Cement Group (SCG) expects sales growth to slow this year, amid continued uncertainties in the global market
“But I think we’re [still] gonna be in the double-digit area, around 10%… top and bottom line,” SCG Philippines Country Director Anuvat Chalermchai said in a press briefing in Makati City.
In 2018, SCG Philippines reported a 26% increase in sales to P18.54 billion, with the cement and buildings unit as the key driver.
Mr. Chalermchai said the SCG group’s business was dampened by high oil prices and the United States-China trade spat last year.
Parent firm SCG Public Co. Ltd.’s net income fell by 19% year on year to P72.865 billion in 2018.
“Uncertainty in the global landscapes continue to exists,” Mr. Chalermchai added.
Nevertheless, the SCG Philippines executive expressed confidence in the country’s economic growth, targeted to reach 7-8% this year.
He cited the May elections and the government’s ongoing infrastructure program as drivers for sales growth this year.
“This year, there’ll be a mid-year election so there’s some extra flow of spending to be injected to the economic environment, and the ‘Build, Build, Build’ is still going forward,” Mr. Chalermchai said.
Meanwhile, SCG Philippines said its unit Mariwasa Ceramics, Inc. will be launching high-quality bathroom sanitary wares under the brand name Fiona.
As for its cement business, Mr. Chalermchai downplayed the impact of the Trade department’s imposition of a provisional safeguard duty on its cement imports, noting SCG’s shipments to the Philippines are “very small” — 200,000 to 300,000 tons compared to the 32 million tons produced across the Southeast Asian region.
SCG is comprised of three core business units namely, SCG Cement-Building Materials, SCG Chemicals and SCG Packaging.
The company has been present in the country since 1993 through its seven subsidiaries namely United Pulp and Paper Company, Inc., SCG Trading Philippines, Inc., Green Siam Resources, Inc., Green Alternative Technology Specialist, Inc., SCG Marketing Philippines, Inc., and Mariwasa Siam Ceramics, Inc. — Janina C. Lim

Gov’t makes full award of T-bills

By Karl Angelo N. Vidal, Reporter
THE GOVERNMENT once again made a full award of the Treasury bills it offered on Monday, amid robust demand following the decision of the local and US central banks to keep interest rates steady.
The Bureau of the Treasury (BTr) raised P20 billion as planned at its auction on Monday, as tenders received amounted to P30.316 billion, well above the amount it wanted to raise, although slightly lower than the P33.657 billion in offers received a week ago.
Broken down, the Treasury accepted P6 billion as planned for the 91-day papers, out of the P7.344 billion offered by banks and other financial institutions. The average rate climbed by 6.6 basis points (bp) to 5.55% from the 5.3484% quoted in the previous offer.
The government also made a full award of the 182-day debt notes it placed on the auction block, borrowing P6 billion as planned versus total offers amounting to P11.569 billion. The average yield also rose 6.6 basis points to 5.933% from last week’s 5.867%.
The BTr likewise fully awarded the 364-day bills, accepting P8 billion out of the total bids at P11.403 billion. Its average yield climbed 5.9 bps to 5.983% from the 5.924% tallied in the previous auction.
To maximize the strong demand seen during Monday’s auction, the Treasury reopened the over-the-counter sale of the 91-, 182- and 364-day instruments. This was made available to tax-exempt government-owned and -controlled corporations from 2 to 4 p.m. yesterday.
Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 5.467%, 5.821%, and 5.962%, respectively.
Following the auction, National Treasurer Rosalia V. De Leon said the BTr saw a “very strong demand,” even as yields across all tenors inched up.
“We hope this would continue, this kind of auction, given the very dovish remarks coming from the Fed (US Federal Reserve), and of course the BSP (Bangko Sentral ng Pilipinas) put on hold the rates during their first policy meeting last Thursday,” Ms. De Leon told reporters on Monday.
Last month, the Fed opted to keep its borrowing costs stable, saying it will be more patient in raising interest rates amid conflicting signals on the US economy’s outlook.
On the local front, the BSP also kept its benchmark rates steady as widely expected, amid signs that inflation is on a sustained decline and with price increases to return to target soon.
Meanwhile, the national treasurer attributed the slight pickup in yields to the news that the BTr will soon sell retail Treasury bonds (RTB).
“That’s (the RTB sale) anticipated by the market given that we have a P70-billion maturity on Feb. 19. But for now, given that we still have a very strong cash position, that’s still is something that we still have to confirm whether to move ahead,” Ms. De Leon said.
She added that the Treasury will have to take into consideration a slew of factors such as market appetite, the passage of the 2019 national budget and the possible cut in bank reserve requirements, before proceeding with the sale.
Sought for comments, a trader said the rates were within expectations given that the market was being cautious on the possible RTB sale.
“The average rates were still within expectations. However, the highest bids slightly exceeded the market expectations,” the trader said.
For the first quarter, the government is planning to borrow P360 billion. Some P240 billion will be borrowed this quarter through 12 weekly T-bill auctions. On the other hand, P120 billion worth of T-bonds will also be issued through six fortnightly auctions.

Architecture festival brings spotlight to Intramuros

By Arra B. Francia
Reporter
AT a time when conventions and events are increasingly being held in the financial districts of Makati and Bonifacio Global City (BGC), this year’s Anthology Architecture and Design Festival is holding its ground in Manila’s walled city, where a group of architects hope to highlight the origins of the country’s cosmopolitan development.
One of the event’s organizers, WTA Architecture and Design Studio Founding Chairman and Principal Architect William T. Ti, Jr. is passionate about holding the annual architecture festival in Intramuros, saying that it is unlike any other city in Asia.
“I think Intramuros is really something. It’s one of the best-preserved Spanish forts, or walled cities. Even in Spain, I don’t think they have something like this. So that’s something that we should cherish, that we should promote especially in Asia,” Mr. Ti said in a press conference for the architecture festival in Makati on Jan. 30.
The Anthology Architecture and Design Festival has been running since 2016, attracting more than 2,000 guests in its pilot year. At the time, the festival was held inside the Plaza de Roma in Intramuros, just in front of the centuries old Manila Cathedral.
For Rebecca Plaza, founder and managing director of Plaza+Partners and also one of the event’s organizers, the event has breathed new life to this part of the country’s capital, which has mostly been ignored by the younger generation.
“It gives character to this event as well. Even the foreigners who come to the event, they’d go like, ‘Wow, this is a beautiful part of Manila. We didn’t realize this was here.’ It’s not as celebrated as say, BGC, but I think it’s our roots,” Ms. Plaza said in the same press conference.
Mr. Ti added that Manila would still be the Philippines’ best choice when it wants to showcase a city that would represent the country, noting that Intramuros is something “truly ours.”
Anthology Architecture and Design Festival seeks to bring together both architects and non-architects to increase awareness on how architecture and design affect urban societies. The festival also hopes to inspire a design-led approach in addressing political, social, environmental, and economic issues to create better cities.
With the theme “Impact Architecture,” it will feature talks from renowned architecture and design firms such as Shma Company Limited, AK+, School of Architecture at Taliesin, AECOM, KennethCobonpue, Bruce Mau Design, 11th Berlin Biennale for Contemporary Art, SC+DC, Buro Ole Scheeren, Aidea Inc., and Tezuka Architects, among others.
Apart from discussions, the festival will also hold several workshops sponsored by institutions such as the SoFA Design Institute, Shau, Arup, and Arcadis.
The festival will run from Feb. 15 to 17. It will host about 100 local and foreign speakers in a bid to attract 7,000 guests from across the Asian region.

Oops! Gucci pulls sweater slammed for resembling blackface imagery

KERING SA’S Gucci withdrew a sweater resembling blackface images like those currently roiling US politics, becoming the latest fashion brand to get embroiled in a controversy over perceptions of racism.
The Italian luxury label apologized for selling the $890 black turtleneck, whose extra-high collar features a pair of exaggerated red lips around an opening for the wearer’s mouth. Gucci said it removed the item from its online and physical stores.
The brand’s misstep comes as Virginia Governor Ralph Northam resists calls to resign after the revelation of a photo from his 1984 medical school yearbook page, showing one individual dressed in a Ku Klux Klan robe alongside another in blackface. He has also apologized for darkening his skin to dress up like Michael Jackson for a dance contest in that same year.
Gucci is only the latest European fashion brand to trip up. In December, Prada SpA withdrew cartoon figures from window displays after they were called out for a resemblance to racist caricatures. Dolce & Gabbana faced calls for a boycott in China after releasing ads that offended consumers; one of the co-founders later compounded the damage with racist comments. Swedish apparel chain Hennes & Mauritz AB temporarily closed some stores in South Africa earlier this year after protests against an ad that showed a black child modeling a hoodie with the text “coolest monkey in the jungle.”
Gucci has made diversity and progressive values central to the hip reboot that has sparked rapid growth for the brand since designer Alessandro Michele took over in 2015. The brand banned fur from its collections, saying the material was “not modern,” donated to a gun-control march and released an ad campaign with only black models that was inspired by the late 1960s soul music scene.
“Gucci deeply apologizes for the offense caused by the wool balaclava jumper,” the brand said in a statement on Twitter. “We are fully committed to increasing diversity throughout our organization and turning this incident into a powerful learning moment.” — Bloomberg

Rediscount loans hit P14.5B in January

By Melissa Luz T. Lopez, Senior Reporter
BANKS TAPPED the rediscount window of the Bangko Sentral ng Pilipinas (BSP) as the year opened, with the extra cash meant to support import payments and capital spending.
Peso rediscount loans totalled P14.462 billion in January, coming from the P14.706 billion credit lines secured in December, the central bank said yesterday.
In contrast, lenders did not borrow from the rediscount facility in January 2018.
The BSP’s rediscount window allows banks to get hold of more cash by accepting their collectibles as collateral for short-term credit. The lenders can then use the fresh money supply — either in peso, dollar or yen — to hand out more credit lines for corporate or retail clients and service unexpected withdrawals.
Banks may borrow from the BSP’s rediscount window if their usual supply of cash falls short of client demand. This also allows the central bank to fulfill its duty as lender of last resort.
In a statement, the BSP said bulk of the short-term loans were meant for commercial credits, with 51.6% declared to support import loans.
This comes at a time of a sustained double-digit growth in imports of raw materials and capital goods, which are said to support increased construction activity in the country.
Around 41.96% of the loans were also declared to fund capital asset expenses, followed by trading loans (5.33%) and other services (1.11%).
The higher rediscount borrowings come at a time when market players said they are seeing “tight” liquidity conditions, following a series of interest rate hikes from the BSP last year. Higher benchmark yields made borrowing money more expensive.
However, central bank officials have said that the tightness in money supply may have been temporary, as it came during the seasonal spike in demand for cash during Christmas. BSP Deputy Governor Diwa C. Guinigundo said the eventual return of oversubscription in the weekly term deposit auctions showed that banks are still sitting on excess cash.
Total loan availment reached P71.524 billion in 2018. On the other hand, the dollar and yen rediscount window meant for exporters remained untapped, sustaining a trend observed for the past few years.
For this month, rates for rediscount loans remain unchanged after policy makers voted to keep benchmark yields steady during last week’s rate-setting meeting.
Rediscount rates for peso loans stand at 5.3125% for loans maturing in 90 days or shorter, while those with a 91 to 180-day term are priced at 5.375%. These are based on the 5.25% ceiling of the interest rate corridor plus a premium.
Meanwhile, yields for foreign currency loans went down, tracking movements in global interest rates.
Dollar borrowings will come with a lower rate of 4.7375% for one to 90-day loans; 4.8% for 91- to 180-day loans; and 4.8625% for 181- to 360-day loans, the BSP said.
Rates for yen loans also went slid to 1.91133% for one to 90-day loans, 1.97383% for 91- to 180-day loans, and 2.03633% for 181- to 360-day loans.

Phinma exits energy business

THE Phinma group signed an investment agreement to sell its stake in the energy sector to AC Energy, Inc., marking the former’s departure from power generation and retail electricity and the Ayala-led company’s growing prominence in the said businesses.
“AC Energy, Phinma Corporation (PHN), Philippine Investment Management (Phinma), Inc. (PHI), signed the Investment Agreement on February 8, 2019 for AC Energy’s acquisition of PHN and PHI’s combined 51.48% stake in (Phinma Energy Corp.) via a secondary share sale for approximately P3.42 billion, based on the valuation date of December 31, 2018 and subject to adjustments,” Ayala Corp. said in a disclosure on Monday.
The company said AC Energy will also subscribe to approximately 2.632 billion primary shares of Phinma Energy at a par value of P1 per share.
Separately, Phinma Corp. said the move was a “timely opportunity … to harness value from a business which it established 50 years ago and which [the group] believes it has grown to the extent it can.”
It “believes that it can make meaningful expansions in other sectors such as education and construction materials, and has elected to sell its shares to AC Energy which is fully committed to this sector.” AC Energy is its partner in South Luzon Thermal Energy Corp.
Ayala Corp. said the deal brings AC Energy a step closer to achieving 5 gigawatts (GW) of renewables by 2025.
“The Phinma Energy platform has significant operating and developmental renewable energy assets, and its large diesel capacity will complement the scaling-up of AC Energy’s renewable projects,” the listed conglomerate said.
AC Energy owns around 1.7 gigawatts of generation capacity in operation and under construction based on its equity interest in power generation businesses. It generated 2,800 GW-hours of energy last year, of which 48% was from renewable sources, the company said.
Phinma Energy has an attributable generation capacity of 472 megawatts (MW). It is the third-largest stand-alone retail electricity supplier serving 378 MW of customer demand.
Sought to comment on the deal, 2TradeAsia.com earlier said two possibilities could happen — for AC Energy to proceed with a tender offer, and for Phinma Energy to be merged with the Ayala company.
The online arm of F. Yap Securities, Inc. said the contribution of AC Energy to parent Ayala Corp. as of the third quarter of 2018 was around 7%. It said with the consolidation of equitized earnings from Phinma Energy, “that would still be the same at around 7% (assuming a merger is undertaken here).”
On Monday, shares in Phinma Energy were unchanged at P1.32 each, while those of PPG fell by 4.11%% to P3.50 each. Phinma Corp. closed at P9.36 apiece, or higher by 4.12%. — Victor V. Saulon

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