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Market volatility can’t absorb MPO increase — SEC chief

The Securities and Exchange Commission (SEC) plans to raise the minimum public ownership (MPO) of publicly listed companies by the end of 2018, but has yet to release guidelines on how these firms should comply due to the volatility in the market.

“For the existing companies, we plan to raise it to 15%. But we’re still studying the matter because unfortunately the market is not that stable to admit this increase. Because maybe some people, because of some volatility in the market are not yet investing,” SEC Chairperson Teresita J. Herbosa told reporters on the sidelines of a forum in Quezon City last week.

The Philippine Stock Exchange index — considered a local barometer for investor confidence — has been steadily declining in previous weeks, after notching consecutive all-time highs at the end of 2017 until breaching past the 9,000 mark last January 26.

Analysts have attributed this decline to a technical correction, further pulled down by the rising bond yields in the United States that have encouraged foreign investors to flee the equities markets and turn to bonds.

“So if you release suddenly an increase of 5% on a public float of 10% then there may be no buyers at this point, or only a few shares will be sold. It will be very difficult for some companies to comply with that increase,” Ms. Herbosa said. — Arra B. Francia

PSE confident of lowering broker ownership

The Philippine Stock Exchange, Inc. (PSE) is confident that it will finally be able to bring down broker ownership in the bourse to less than 20% after the conduct of its stock rights offering (SRO) this March.

In a statement issued over the weekend, the PSE said it has signed an underwriting agreement with BDO Capital and Investment Corp and First Metro Investment Corp for the issuance. With the two firms handling the SRO, the company guaranteed the the shares will be fully subscribed.

“The firm commitment of our underwriters to our SRO effectively reduces the ownership of brokers in the Exchange to below 20 percent. Compliance with the Securities Regulation Code (SRC) on the 20 percent maximum broker ownership in the Exchange has finally been achieved,” PSE President and CEO Ramon S. Monzon explained. — Arra B. Francia

Suspect in killing of Kuwait OFW in police custody — envoy

By Arjay L. Balinbin

The main suspect in the killing of Filipina domestic helper Joanna D. Demafelis, whose body was found in a freezer in an abandoned apartment in Kuwait, is now in the custody of Lebanese authorities, Philippine Ambassador to Kuwait Renato Pedro O. Villa said.

“I have been informed by the Ministry of Interior yesterday [Feb.22] that the primary suspect in the killing of Joanna Demafelis is now in the custody of Lebanese authorities,” Mr. Villa said in a video that the Department of Foreign Affairs (DFA) forwarded to reporters on Friday evening, Feb. 23.

“This is a positive development because as we all know President Duterte and Secretary Cayetano have been asking the assistance of Kuwaiti authorities in attaining justice for Joanna Demafelis,” Mr. Villa added.

In a statement, Foreign Affairs Secretary Alan Peter S. Cayetano said: “The President welcomes the news that Nader Essam Assaf is now in the hands of authorities in Lebanon.”

According to the foreign affairs department, “Nader Essam Assaf, a Lebanese national, who together with his wife, Mona, a Syrian national, are the principal suspects” in the murder of the 29-year-old overseas Filipino worker (OFW) from Sara, Iloilo.

“Assaf and his wife have been the subject of an Interpol manhunt after Kuwaiti authorities discovered early this month the battered body of Demafelis inside a freezer in the couple’s abandoned apartment unit more than a year after her family reported her missing,” the department added.

According to Mr. Cayetano, “the Kuwaiti authorities conveyed the arrest of Assaf to Ambassador Renato Villa during a meeting at the Ministry of Interior on Thursday.”

“Assaf’s arrest is a critical first step in our quest for justice for Joanna and we are thankful to our friends in Kuwait and Lebanon for their assistance,” he added.

“In that meeting, Maj. Gen. Ibrahim Al-Tarah, Assistant Undersecretary for General Security Affairs, disclosed to Ambassador Villa that Interpol Lebanon had notified Interpol Kuwait that Assaf is now in custody but that his wife is still at large and is believed to be in Syria,” the DFA said.

“Kuwaiti authorities requested the assistance of Interpol in locating and arresting the couple who they believed fled to Lebanon or Syria shortly after the torture and murder of Demafelis.”

The DFA likewise reported that Mr. Cayetano “expects Kuwaiti authorities to request the extradition of Assaf so he could stand trial in Kuwait.”

US stock recovery gets its groove back after a week of false starts

Bulls wondering if a rally would ever hold again got an answer Friday, as a rousing advance in the S&P 500 salvaged the week and nearly erased losses from the worst day of the February selloff.

Following three days in which every gain proved ephemeral, Friday’s 1.6 percent surge left the benchmark gauge for U.S. equities up 0.6 percent for the holiday-shortened week. Gains remained concentrated in a handful of economically sensitive sectors, with technology and commodity companies rising 1 percent or more over the four sessions.

At 2,747.3, the S&P 500 finished the week within 1 percent of its closing level on Feb. 2, the day before one of the worst single-day plunges in seven years caused the VIX to double and set off a chain reaction that resulted in the liquidation of exchange-traded notes tied to stock market turbulence.

“It just goes to show that a lot of this volatility on the downside is just phony,” said Donald Selkin, New York-based chief market strategist at Newbridge Securities Corp., which manages $2 billion. “It had nothing to do with fundamentals. All it is is just trading.”

Friday’s jump, which gained steam in the final hours, assuaged — but didn’t completely vanquish — creeping concerns about the rebound from the Feb. 8 low. Bulls have expressed occasional frustration with the recovery’s uneven breadth, that while benchmarks held their ground it’s been on the back of a narrowing number of gainers. About half of stocks are trading above their 50-day average, a break from past dip-buying frenzies that were marked by cathartic purchasing.

For now, a lot of the price action looks ascribable to charts. Before Friday, a succession of rallies in the S&P 500 had all lost steam at a specific level, the 50-day moving average. John Augustine, chief investment officer for Huntington Private Bank in Columbus, Ohio, said the market is likely to be influenced by the price level — 2.730.88 — until at least first-quarter earnings season begins in April.

“The 50-day is the battle line,” he said. “You’ve got a situation where GDP estimates are going up and earnings estimates are also going up. Investors are trying to invest into that and worried about inflation at the same time.”

While groups like tech, utilities and retailers have bounced nearly all the way back amid the rally since Feb. 8, industries from energy to consumer staples and telecom remain about 7 percent or more below their levels at the market’s peak. For those who saw the specter of an overheating economy driving price action, there are signs the threat is still on people’s radars.

“It will be a very different type of market that will emerge from this period of turbulence,” said Michael Shaoul, chief executive officer of Marketfield Asset Management. While the S&P 500 will eventually surpass its old record, he wrote, “We would expect to see gains concentrated in economically sensitive portions of the market that show the ability to either contain costs or pass them on to their customer base.”

Back of the envelope, a rough gauge of pricing power might be the durability of profit margins. And over the past five years, technology and industrial companies have seen the biggest increase in those. Both have led the way since the Feb. 8 low.

“The point about pricing power is definitely reflecting itself in the markets because utilities, telecom and staples, they’ve got a tough time passing that along, but financials can directly benefit from higher interest rates,” said Don Townswick, the director of equities at Hartford, Connecticut-based Conning Inc, which manages $121 billion. “Everybody wants that pricing power in an inflationary environment, whether that’s what we find ourselves in now.”

Still, that narrative is not without blemishes. A Goldman Sachs index that tracks companies with the lowest labor costs is trailing its high-labor cost counterpart by 2.5 percent since the market topped on Jan. 26. That’s counter-intuitive considering companies who pass less earnings should be shielded as wages rise alongside inflation.

Just yesterday, Treasury Secretary Steven Mnuchin brushed aside signs that investors are nervous about rising prices, saying President Donald Trump’s policies won’t cause inflation.

“There are a lot of ways to have the economy grow,” Mnuchin said in an interview aboard a train to Philadelphia on Thursday, where he toured the U.S. Mint. “You can have wage inflation and not necessarily have inflation concerns in general.” — Bloomberg

P1-B tax evasion complaint filed vs Dunkin’ Donuts franchisee

THE Bureau of Internal Revenue (BIR) filed on Friday a P1-billion tax evasion complaint against Prieto-owned Golden Donuts, Inc. (GDI), which holds the local franchise for Dunkin’ Donuts chain.

In a statement, the BIR said the criminal complaint was filed with the Department of Justice against Golden Donuts and four of its officials for willful attempt to evade tax, and failure to supply correct and accurate information on the company’s income tax return (ITR) and quarterly value added tax (VAT) return in 2007.

Named in the complaint were Golden Donuts President Walter C. Spakowski, Treasurer Miguel H. Prieto, Chief Financial Officer Pedro E. Paraiso and Vice-President for Finance and Administration Jocelyn V. Santos.

The BIR said GDI and its corporate executives are also being held civilly liable for income tax, VAT and expanded withholding tax (EWT) deficiencies for taxable year 2007, reaching P1.12 billion, including surcharge and interest. Broken down, GDI’s income tax deficiency stood at P840.82 million; VAT — P270.42 million; and EWT — P7 million.

Golden Donuts is the exclusive franchisor of Dunkin’ Donuts of America, Inc. (DDAI), which gave it the license to develop and operate doughnut shops in the Philippines.

“The case arose when a confidential information was received by the BIR that GDI made substantial under-declaration on its sales. To check the veracity of said information, a Letter of Authority was issued by the Commissioner of Internal Revenue for the examination of its books of accounts and other accounting records pursuant to the Run After Tax Evaders (RATE) Program of the BIR,” the tax agency said.

In its investigation, the BIR said sales invoices issued by some suppliers were “intentionally altered” and did not include GDI’s taxpayer identification number.

“Through this scheme, GDI was able to claim the altered invoices as deductions from its income and as input VAT credits in the amount of PhP99,297,036.47 and PhP11,915,644.38, respectively. Consequently, no deduction or input tax credits shall be allowed if supported by non-compliant receipts/invoices as they are not valid proof of substantiation,” the BIR said.

The tax authority also noted Golden Donuts was found to have “substantially” under-declared its sales by 39%, and its royalty income by P38.96 million.

“The under-declaration of sales was noted by comparing the donut sales declared by GDI vis-à-vis sales derived from the grossed-up value of franchise fee paid to Dunkin Donuts of America, Inc. (US),” the BIR said.

GDI DENIES ACCUSATIONS
In response, Golden Donuts said it “categorically denies” the BIR’s accusations.

“As a matter of fact, the tax liabilities of GDI for the said year had been settled with the BIR as of 2012. Further, it has always been compliant with all tax laws and regulations, as evidenced by tax clearances issued by the BIR over the years,” the company said in a statement.

“It appears from the news reports that the complaint was filed based on an alleged 39% underdeclaration of sales which arose from the attribution of sales of franchises to GDI. All GDI franchisees are business entities separate from GDI that are responsible for paying their own taxes… GDI is prepared to answer the tax evasion case in the proper forum,” it added.

In April 2017, President Rodrigo R. Duterte accused the Prieto family, which then owned The Philippine Daily Inquirer, of not paying correct taxes on its Dunkin’ Donuts business.

“Inquirer ang may-ari ng Dunkin’ Donuts. Alam mo ba ‘yan? At may utang ‘yan sila na taxes. Inayos ni Kim Henares. Walang ibinayad o nabayad nang kaunti lang (Inquirer is the owner of Dunkin’ Donuts. Did you know that? And they owe us taxes. It was fixed by Kim Henares. They did not pay or just paid a little amount),” Mr. Duterte said then, referring to the former BIR commissioner.

Last year, the Prietos sold its 85% stake in the Inquirer Group of Companies to business tycoon Ramon S. Ang, calling the move “a strategic business decision.”

Mr. Duterte also criticized the Prieto and Rufino families, owners of the Mile Long property in Makati City, for evading taxes and rentals.

The Mile Long property located along Amorsolo Street in Makati has been the subject of a legal dispute between the government and Sunvar Realty Development Corp.

In August 2017, the property firm owned by the Rufino and Prieto families agreed to vacate Mile Long following an order issued by the Makati Regional Trial Court’s branch 141. — Karl Angelo N. Vidal

SEC to grant exemptive relief to winning bidder for PDS

By Arra B. Francia, Reporter

THE Securities and Exchange Commission (SEC) said on Friday it will only grant exemptive relief once it is clear if the Philippine Stock Exchange, Inc. (PSE) or Land Bank of the Philippines (Landbank) will acquire the Philippine Dealing Holding Systems Corp. (PDSHC).

“We will issue exemptive relief once everything is already clear on who will win the price war,” SEC Chairperson Teresita J. Herbosa told reporters at the sidelines of a forum on Friday.

Any entity looking to acquire PDSHC would have to secure exemptive relief from the SEC, as per the Securities Regulation Code that says no single group can own up to 20% of an exchange.

Ms. Herbosa said the competition between PSE and Landbank for PDSHC is more of a business issue at this point, given that it would depend on which party can bid higher.

“Acquisition should be for reasons to benefit the investing public… If it comes to that point where both PSE and Landbank will be applying to us, assuming also that they have the same go-signal from the owners of (PDSHC), we’ll have to probably consider these factors,” Ms. Herbosa said.

The PSE has been negotiating to acquire the fixed-income exchange for about four years now, since it proposed to merge the two capital markets back in 2013 to promote synergies in operations. So far, the PSE has been able to hike its stake in the PDSHC to 69.03%.

The bourse operator will also be conducting a P3.16-billion stock rights offer to eligible stockholders by March to bring down ownership of trading participants to less than 20% in the PSE. The funds raised will also be used for its acquisition of PDSHC, which is valued at P2.2 billion.

In January, Landbank bared its plan to acquire a majority stake in PDSHC, in a challenge to PSE’s bid.

Finance Secretary Carlo G. Dominguez III earlier said the PSE’s inability to merge with PDS has hampered the growth of the country’s capital markets. He has also expressed support for Landbank’s acquisition, saying it will be a profitable business for the government-owned bank.

While the PSE has a pending petition, Ms. Herbosa said Landbank has yet to file a petition for exemptive relief at the commission.

Rappler may file new incorporation papers — SEC

ONLINE news site Rappler.com may reorganize and file new incorporation papers with the Securities and Exchange Commission (SEC) anytime, as long as the company would no longer have foreign ownership.

SEC Chairperson Teresita J. Herbosa said the companies controlling Rappler.com, namely Rappler Inc. and its parent Rappler Holdings, Inc., could withdraw the petition they filed with the Court of Appeals (CA) questioning the commission’s decision, thus allowing them to organize as a mass media firm anew.

“There are many ways of coming up, dissolving Rappler and reorganizing another corporation to engage and offer the same business but make sure it’s 100% Filipino….They can do that anytime. In fact they can withdraw the case at anytime. The courts would allow you to do that,” Ms. Herbosa told reporters after a forum held in Quezon City on Friday.

To recall, the SEC had revoked Rappler’s incorporation papers last January for failing to meet the constitutional limits on foreign ownership, focusing on its sale of Philippine Depository Receipts (PDR) to foreign entities Omidyar Network Fund LLC and NBN Rappler LP.

The SEC also voided the PDRs issued to Omidyar Network, as per Section 71.2.of the Securities Regulation Code for being a fraudulent transaction.

Rappler then filed a petition before the CA last Jan. 29 questioning the decision, saying that the PDRs sold to Omidyar Network did not constitute control.

Once the CA decides on the petition, the losing party will then have the option to elevate the case to the Supreme Court, which will have the final say on the matter. Should the courts uphold the SEC’s decision, Rappler would have to be dissolved.

Ms. Herbosa however clarified that Rappler may still reorganize and “get in the same business of mass media.”

Asked if the company can keep its name, Ms. Herbosa said this would be no problem.

“When it comes to names, the SEC recognizes if you own the name and you want to reorganize or reincorporate the same name, as long as you own the name, then there is no problem,” Ms. Herbosa said.

Ms. Herbosa also noted that it is “unfair and unkind” to say that the decision to revoke Rappler’s incorporation papers was politically motivated.

“When I decided to become SEC chair, I knew there will be instances when hard decisions will not be accepted by everyone. That to me was really unfair and unkind to say that the decision is politically motivated,” Ms. Herbosa said.

The SEC decision against Rappler highlighted the tension between the press and the administration of President Rodrigo R. Duterte, who has slammed media for their critical coverage of his bloody war on the narcotics trade.

Earlier this week, Mr. Duterte banned Rappler.com’s senior reporter Pia I. Ranada from covering Malacañang due to “loss of trust,” according to Presidential Spokesperson Herminio Harry L. Roque, Jr. — Arra B. Francia

Motion seeks to ‘physically remove’ deputy Ombudsman from office

LAWYERS and former lawmakers filed a motion before the Office of the President on Friday to “bodily or physically remove” from office Overall Deputy Ombudsman Melchor Arthur H. Carandang, who has been accused of disclosing bank transactions of President Duterte and his family.

The motion was filed by lawyers Manuelito R. Luna and Eligio P. Mallari and former congressmen Jacinto V. Paras and Glenn A. Chong.

“If you recall, Carandang has divulged falsely the purported records of the President, where he alleged that it was taken from the AMLC [Anti-Money Laundering Council]. But later on, it was denied by AMLC that the records on the President’s bank deposits were taken from AMLC,” Mr. Paras told reporters in an interview on Friday morning.

President Rodrigo R. Duterte had ordered Mr. Carandang suspended in January, but Ombudsman Conchita Carpio-Morales refused to comply with the order. Mr. Carandang was charged with grave misconduct and dishonesty for claiming that Mr. Duterte’s bank accounts amounted to P1 billion.

“If the Ombudsman will not follow the order of the Office of the President to suspend him…we suggested that he should be bodily removed. The Office of the President shall implement the suspension order bodily removing Carandang from the Office of the Ombudsman, to get him out as a suspended official,” Mr. Paras added.

As the commander-in-chief, the Office of the President “can always request or order the enforcement agencies, maybe the Philippine National Police (PNP) or the CIDG [Criminal Investigation and Detection Group]… unless there is a TRO [Temporary Restraining Order] from the court,” Mr. Paras explained.

The Office of the President should make their powers felt such that this will set as a deterrent for future public officials, he said.

For his part, Mr. Luna said that “we have to make sure that the rule of law is followed and that an example should be set.”

“Otherwise, [all] respondents [with a] preventive suspension just put a defense [that the order] is unconstitutional or [that they can question] the disciplinary action of the Office of the President,” Mr. Luna said. “Only a competent court can determine whether or not the order is constitutional or not.”

Asked about the legal basis of their motion, Mr. Luna argued that “the legal basis is the law itself. We believe that the power of the President to remove the Deputy Ombudsman and the Prosecutor is still a valid law passed by Congress.”— Arjay L. Balinbin

Military ready for another possible conflict

THE Armed Forces of the Philippines (AFP) is getting ready for another possible conflict, a ranking officer said on Friday.

“[F]rom our experience from the Marawi siege, we are preparing for another urban warfare,” Deputy Commander of Joint Task Force Ranao Colonel Romeo S. Brawner, Jr. said. “In the eventuality that something similar to Marawi City happens, we should be ready.”

Military preparations include “rewriting doctrines, reorganizing units, reequipping, and retraining,” Mr. Brawner told reporters during the Bangon Marawi briefing on Friday. “We are ready for another Marawi siege whether it happens in Marawi or elsewhere.”

Government troops are also calling for cooperation from concerned groups to help them counter any threats of violent extremism in the country, he said. The military is likewise “banking on the help of the [Moro Islamic Liberation Front] in our “advocacy to counter violent extremism and radicalism,” Mr. Brawner added.

While Marawi is “relatively safe and secured,” the military has reported several encounters in January with “believed members of the Maute-ISIS…especially around Lanao Lake.” Members of the group laid siege on the city in May 2017 and were later chased out in October.

The implementation of martial law (ML) in Mindanao especially in the areas of Lanao del Norte and Lanao del Sur also plays an important role in maintaining peace and order, according to the AFP.

Guns are no longer being carried openly and murder, homicide, and other killings have been reduced since the implementation of martial law, Mr. Brawner said.

Authorities have also been able to monitor and control the flow of people entering the city, he said, adding that the military still recommends the continuation of martial law. — Arjay L. Balinbin

NOW Telecom franchise gets 25-year extension

NOW Telecom Company, Inc.’s legislative franchise has been extended for another 25 years.

The NOW Corporation affiliate said in a disclosure to the stock exchange that on Feb. 22, President Rodrigo R. Duterte signed into law Republic Act No. 10972 which extends NOW Telecom’s franchise until 2043.

“With the said law, NOW Telecom, as a telecommunications company, now has the privileges similar to those granted to existing dominant players in the industry,” the disclosure read.

Republic Act (RA) No. 10972, which was first drafted in July last year, renews the old RA No. 7940 to allow the franchise to build, operate, and maintain mobile radio systems within and without the Philippines for 25 years.

The act will take effect 15 days after it is published either in the Official Gazette or any general circulation newspaper.

NOW Telecom Mel V. Velarde said in a Facebook post that this would mean that they have secured a “tri-mega franchise.”

Formerly known as Infocom Communications Network, Inc., NOW Telecom is one of the three telecommunication companies vying take the third slot as one of the major players in the industry. The Department of Information and Communications Technology had announced some of the requirements needed to qualify for the slot, such as having a net worth of at least P10 billion, no liabilities, and that the company should be 60% Filipino-owned.

Now Corp.’s shares on Friday closed P.66 or 4.39% higher at P15.70 from Thursday’s P15.04. — Anna Gabriela A. Mogato

Davao Region leaders cut national party ties, form regional party

FOUR of five provincial governors and a majority of elected officials in the Davao Region are resigning from their national party affiliations after forming the Hugpong ng Pagbabago (HNP), which formally convened for the first time on Friday.

“The agreement is when we run next election (2019), we will run under HNP,” Davao City Mayor and presidential daughter Sara Duterte-Carpio said during a press conference prior to HNP General Assembly on Friday.

The assembly is intended to discuss preparations for filing as a regional party with the Commission on Elections (Comelec).

Ms. Carpio said the establishment of the HNP is aimed “to strengthen Davao Region” in terms of “progress and development”.

Among those who formed the HNP are Ms. Carpio, who will be sitting as party chair, along with Governors Nelson L. Dayanghirang (Davao Oriental), Claude P. Bautista (Davao Occidental), Anthony G. del Rosario (Davao del Norte), and Jayvee Tyron L. Uy (Compostela Valley).

Mr. Uy, who led a group of 130 local officials from Compostela Valley, said he has resigned early Friday morning from the ruling Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban).

President Rodrigo R. Duterte, who was mayor of Davao City for more than two decades, ran under the PDP-Laban in the 2016 presidential elections.

Prior to that, Mr. Duterte belonged only to the Davao City-based Hugpong sa Tawong Lungsod party, which he founded.

In a press statement Thursday, Ms. Carpio said the formation as well as the name of Hugpong ng Pagbabago was approved by her father.

Mr. Dayanghirang of Davao Oriental said he already asked permission to resign from the Liberal Party, a move that Mr. Del Rosario of Davao del Norte did last year. Mr. Bautista said he is also deemed resigned from the Nationalist People’s Coalition once he runs under the HNP.

Ms. Carpio said Davao del Sur Governor Douglas R. Cagas, a member of the Nationalista Party, was also invited to join HNP but did not immediately accept the offer. — Carmencita A. Carillo

2Go invests in Mober online delivery service

SM Investments Corp.’s integrated transport solutions provider 2GO Group, Inc. (2GO) is investing in the online delivery service Mober Technology PTE.

In a statement issued Friday, Mober said it has received a capital infusion from 2GO, effectively linking it to SM Investments Corp. (SMIC). The holding firm of the country’s richest man Henry Sy, Sr. has an interest in 2GO after acquiring a 34.5% interest in its parent, Negros Navigation Company (Nenaco), last year.

With this partnership, Mober said it will be able to service SM’s various businesses, such as SM Appliance, Our Home, SM Department Stores, and other SM affiliates, by providing them with same-day delivery capabilities.

“From individual to businesses, Mober helps you move forward in just a few taps using our Mober app. It’s a click, load, deliver scheme. We offer pick-up and delivery services that’s tailored to your specific needs,” Mober founder and Chief Executive Officer Dennis Ng said in a statement.

Founded in 2015, Mober has been described as the “Uber for logistics.” Using a mobile application, Mober allows users to book vans that can transport big items around Metro Manila, Laguna, and Bulacan. It has scaled up its operations to around 140 van partners as of May 2017.

The company also provides home and store deliveries on the same day or in advance, and pet shuttles.

Meanwhile, 2GO operates through three core business units: 2GO Freight for commercial and personal shipping needs, 2GO Travel for the integration of passenger ships and fast ferries, and 2GO Supply Chain for logistics, distribution, warehousing, and inventory management.

For his part, 2GO President and Chief Executive Officer Frederic C. DyBuncio said the online platform will help fill a gap in the company’s services.

“Mober fills in the gap for 2GO being a technology platform that allows on-demand delivery service for big items,” said Mr. DyBuncio, who also sits as the president and CEO of SMIC.

2GO Chief Operating Officer Ricardo B. Aguas, Jr. meanwhile said the partnership will merge technology and business innovations in the logistics space.

“This is also a strategic partnership for 2GO as we are also embracing the multiple opportunities the digital world brings,” Mr. Aguas said.

With the capital infusion from 2GO, Mr. Ng said he plans to expand Mober to other key cities in the Philippines, enhance the Mober app for better scalability, and add more van partners to its network.

Mober did not disclose how much it had received from SMIC. — Arra Francia

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