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PCC approves Udenna purchase of Nenaco minority shareholder

THE Philippine Competition Commission (PCC) said it approved Udenna Corp.’s acquisition of a Dutch firm that holds a stake in 2GO Group, Inc.’s parent company, Negros Navigation Co., Inc. (Nenaco).
In a statement Monday, the regulator said the acquisition by Udenna of KGL Investment Cooperatief U.A.’s (KGLI) shares in KGL Investment B.V. (KGLI-BV), was approved.
KGLI-BV holds a minority stake in Nenaco and, indirectly, 2GO.
The deal was approved after the companies paid on April 19 a P19.6-million fine “for consummating the deal without clearance from the antitrust commission.”
The penalty is equal to 1% of the value of the merger transaction.
In February, the PCC Mergers and Acquisitions Office found that Udenna bought 100% of KGLI-BV through a July 28, 2016-dated share purchase agreement.
The consummation of the deal was further reflected in a deed of transfer dated Aug. 19, 2016.
Under the Philippine Competition Act of 2015, parties to a merger and acquisition agreement valued above P1 billion are not allowed to complete their deal without notifying the commission.
The PCC launched a review of the transaction after Negros Holdings & Management Corp. (NHMC) filed a complaint in December 2016. NHMC is owned by the Tagud family which is disputing ownership of 2GO with Dennis A. Uy, whose holding firm is Udenna.
Udenna’s businesses include the distribution and retail of refined petroleum products and lubricants fronted by listed Phoenix Petroleum Philippines, Inc., as well as shipping operations related to the inter-island transport of petroleum products and other bulk products.
The Uy group is also involved in ship management, the operation of oil depots and storage facilities, industrial parks, real estate and property development, and waste management and environmental services. — Janina C. Lim

How SCG’s housing technology can help Asians beat the heat

By Arra B. Francia
Reporter

BANGKOK, THAILAND — Southeast Asian countries all experience one thing in common: the hot and humid weather that is a persistent presence all year round. For this week, temperatures in the Philippines are projected to play around the 30-degree Celsius level.
Here in Thailand, Siam Cement Group Public Company Limited (SCG) is introducing new ways to help homeowners in Asia combat the tropical heat. Combining materials with high energy efficiency labels and smart technology, the company has developed the AIRFlow and Well AIR systems that lets customers control ventilation systems in their homes.
“Active Airflow, our own innovation, is the way we force air by using the ventilation system controlled by smart technology, based on what you prefer,” SCG Cement Building Materials Brand Management and Communication Director Anuvat Chalermchai told reporters here last May 2.
The AIRFlow system is an application downloadable on smartphones, which can be used to control SCG-installed ventilation systems inside a house. The ventilation systems include having a roof that can better reflect sunlight and absorb heat, blocking it from entering the house; insulation above ceilings, and lightweight concrete.
“With the humid climate you feel very uncomfortable, even with the 25 degrees Celsius, you can feel a little bit sticky… The trick is how to make the air circulate in the house, let the cool air push the hot air away from your house up away from your ceiling,” Mr. Chalermchai explained.
Cooling solutions are among the dozens of products that SCG had on display during the Architect Expo ’18 held here from May 1 to 6.
The 105-year-old Thai firm welcomes around 400,000 people at its booth during the Architect Expo every year, showcasing its latest innovations in housing and construction materials. With around 70% of those visitors being homeowners, the company makes sure that its products fit the needs of customers guided by its “Passion for Better” slogan.
“It’s the way that we can show our brand promise to our customers. Passion for better in our context is passion for better living. What that means is we are going to provide the solution for the homeowners especially so they can have the best living factor,” Mr. Chalermchai said.
During the expo, SCG also unveiled the Home Buddy Application, branded as a thinking partner for home owners that can guide them in building a new house, renovating an existing one, or finding solutions for housing problems. The Home Buddy App connects users to end-to-end processes, from hiring consultants, to finding a contractor, up to project management.
While the app is only available in Thailand, the company is looking at testing it in other Southeast Asian countries as well.
Alongside developing housing solutions, SCG also went beyond building materials with the introduction of a robot it calls “Din Saw,” the Thai word for pencil. Designed with a square head that functions as a monitor, the Din Saw robot is SCG’s answer to helping elderly people with medical conditions.
“I think Thailand is one of the country that’s going to be an ageing society, just like many modern countries like Singapore and Japan… (There’s) a lot of elderly people, it’s a big segment so we want to provide a solution for this segment,” Mr. Chalermchai said.
The robot tracks bedridden seniors and instantly notifies family members or doctors through a mobile app should there be a lack of movement for a certain period. It can likewise track vital signs, give reminders for medication, store one’s medical history, and instruct them on recreational activities.
“It’s a companion robot that can be a friend of your parents that stay home with them alone, and you go out working if you can’t spend time with your parents during the day, this can be their friend. It can talk, sing a song, exercise, and even connect with you as well,” Mr. Chalermchai said.
Din Saw is part of SCG’s Eldercare solution, which also offers toilet accessories, mattress, cushion and bedding products, mobility devices, home use health care devices, and smart gadgets. More than this, SCG also connects homeowners to consultants with an in-depth understanding of the needs of the elderly.
For now, these SCG products have yet to be made available in the Philippines. But the SCG executive is hopeful that they can eventually use their local subsidiary, Mariwasa Siam Ceramics, Inc. — focused mostly on tile and ceramic products — as a platform to introduce other SCG products in the Philippine market.
“We use Mariwasa as a platform to introduce other products. Products will be imported from other production bases that we have in Southeast Asia, logistics and import to Philippine market. We see it as a very high growth country, which I hope will continue growing,” Mr. Chalermchai said.

Singer Gary Valenciano goes under the knife

ACTOR/PERFORMER Edgardo Jose “Gary” Valenciano underwent emergency open heart surgery on Saturday after feeling chest pains following a performance he did with his son, Gabriel, in celebration of his 35th anniversary in the industry.
The surgery was successful said his wife on a social media post.
“After that dance, I felt a sensation I’d never felt before — not even during the times I would push myself, riding my mountain bike on the trails for extended periods of time — I felt tightness and pain in my chest,” Mr. Valenciano said in a statement posted by his agency, Manila Genesis Entertainment and Management, Inc., on its Facebook page on Sunday.
Mr. Valenciano said that while he has a good strong heart, the main valve of his left anterior descending artery was 95% blocked and had very thin walls because of his chronic diabetes. This prompted his doctors to recommend emergency bypass surgery.
Mr. Valenciano is known for his high-energy performances despite living with Type 1 Diabetes for 39 years.
The surgery was successful, according to Mr. Valenciano’s wife, Angeli Pangilinan-Valenciano in an update posted on the agency’s page.
“Gary’s heart surgery was successful. Paolo, Gab, Kiana and I visited him at the coronary recovery room and doctors have said he is doing very well. In behalf of our family, I request for prayers for my husband’s speedy recovery,” Ms. Pangilinan-Valenciano said.
“I apologize to my ASAP, Your Face Sounds Familiar, and [It’s] Showtime families and fans, the companies and organizations i am scheduled to do shows for, the students from various universities I am so excited to meet… I was especially looking forward to Unstoppable, Darren Espanto’s concert. I need to excuse myself from all these commitments until I fully recover from the bypass surgery,” Mr. Valenciano said, referring to his various television shows and other engagements, in his statement.
Mr. Valenciano was scheduled to perform at Canadian singer Darren Espanto’s birthday concert on May 26 at the KIA Theater in Quezon City.
“Being active has never been my problem. But I now often feel tired and sleepy, despite being fully rested. The chest pains were an alert and confirmed, thank God, that something was wrong. I’m thankful I didn’t wait too long to take the necessary tests,” he said before adding that he thought it best to give his fans, friends, and family details on his condition “to prevent gossip and speculation that may cause worry and concern.”
“Do not worry please, only pray — I have an expert team of gifted doctors, some of them have taken great care of me for many, many years now… I will do my best to keep you updated as the days go by. Should I remain silent, it’s probably only because I will be recuperating, getting better, and building up my strength,” he said. — ZBC

Weak cement prices drag down Holcim PHL’s profit

HOLCIM Philippines, Inc. reported a 26.5% drop in its attributable profit for the first three months of 2018, as cement prices weakened amid “intense” competition.
In a regulatory filing, the listed cement manufacturer reported a net income attributable to equity holders of the parent of P691 million for the first quarter of 2018, lower than the P940 million it booked in the same period a year ago.
Net sales also declined by 2.3% to P8.6 billion during the quarter, as pricing pressures from imports dampened the 7% year-on-year increase in cement sales volumes.
“Demand conditions are improving as the government continues to ramp up infrastructure investments. However, its positive impact on our financial performance was not enough to offset higher energy costs and weaker cement prices brought by intense competition,” Holcim’s newly appointed President and Chief Executive Officer John Stull said in a statement.
The first quarter results is an improvement from the 61% profit drop Holcim recorded in full-year 2017 to P2.69 billion, where it also cited construction growth slowdown and tighter competition as the factors that dragged on its performance.
This year, Holcim said that it remains optimistic on the growth of the construction industry with the government’s rollout of more infrastructure projects under the “Build, Build, Build” program.
“Our company is well positioned to support this by providing reliable cement supply and rolling out innovative building solutions. At the same time, we will continue to improve and strengthen our cost management efforts centered on raising the efficiency of plant and logistics operations,” Mr. Stull said.
Holcim is currently expanding its cement capacity with the investment of $54 million until 2019. The capital infusion is expected to increase its capacity to 2 million metric tons.
Shares in Holcim added 47 centavos or 5.45% to close at P9.10 each at the Philippine Stock Exchange on Monday. — Arra B. Francia

Seda hotel in Cebu to open by 3rd quarter

AYALA LAND, Inc. (ALI) is on track to open Seda Ayala Center Cebu, the company’s largest hotel in Visayas, in the third quarter.
The new hotel, which is the ninth property under the Seda brand, is located within the Cebu Business Park. Seda already has hotels in Bacolod City, Cagayan de Oro, Davao, Laguna, Iloilo, Taguig and Quezon City, and is poised to open a resort hotel in Palawan mid-2018.
In a statement, ALI said the new Seda hotel is easily accessible to the different dining, retail and lifestyle offerings of Ayala Center Cebu.
“Warm contemporary surroundings in a strategic location matched with an exceptional customer experience have propelled the Seda brand in the last five years. We will make our mark in Cebu drawing from these successful brand values,” Seda Senior Group General Manager Andrea Mastellone was quoted as saying.
Customers can expect that the new hotel, which houses 301 guest rooms, would “feel familiar and at the same time new,” interior design consultant Conrad Onglao said in the statement.
Seda retained the lobby’s high ceiling, but the guest rooms have been given a makeover and new layout in earth tones. The function rooms will also feature brighter and lighter colors, along with modern finishes.
“Lobby seating will likewise be expanded, covering the area of the former lounge, to reflect the open space layout of other Seda hotels where the reception area flows seamlessly into the e-lounge and main dining facility,” the statement added.
The hotel will also feature Filipino-made art pieces. Photographer Jaime Zobel de Ayala’s work will be the centerpiece at the hotel lobby.
“Seda is proud of its Filipino DNA and highlights this in its art pieces, furniture and more importantly, its service culture. To ensure memorable guest experiences, we carefully select associates who are empathetic, caring and are naturally hospitable. They then undergo consistent training and development so they strive to understand our guests’ needs and outdo their expectations,” Mr. Mastellone said. — Denise A. Valdez

Balangiga, Larawan top FAMAS nominations

WITH 11 nominations including Best Picture, Best Director, Khavn dela Cruz’s Balangiga: Howling Wilderness leads the list of nominees of the 66th Filipino Academy of Arts and Sciences (FAMAS).
This year’s FAMAS Awards will be held on June 10 at The Theater at Solaire of Solaire Resort and Casino in Parañaque City.
The FAMAS Awards is considered the oldest film industry award-giving body in the country and one of the oldest in Asia. All Filipino-produced films that premiered in 2017 that had at least one day of commercial screenings are qualified for this year’s awards.
Balangiga is followed by Loy Arcenas’ Ang Larawan which has six nominations including Best Picture and Best Actress for Joanna Ampil.
Below is the full list of nominees:
• Best Picture — Ang Larawan; Balangiga: Howling Wilderness; Birdshot; Love You to the Stars and Back; Nervous Translation; Paki; Respeto; Tu Pug Imatuy (The Right to Kill); The Chanters; Yield
• Best Director — Khavn dela Cruz, Balangiga: Howling Wilderness; Mikhail Red, Birdshot; Top Nazareno, Kiko Boksingero; Antoinette Jadaone, Love You To the Stars and Back; Shireen Seño, Nervous Translation; Alberto “Treb” Monteras II, Respeto; Arnel Barbarona, Tu Pug Imatuy; Victor Delotavo Tagaro, Toshihiko Uriu, Yield
• Best Actor — Justine Samson, Balangiga: Howling Wilderness; Allen Dizon, Bomba; Jojit Lorenzo, Changing Partners; Noel Comia, Kiko Boksingero; Joshua Garcia, Love You To the Stars and Back; Timothy Castillo, Neomanila; Abra, Respeto; Dingdong Dantes, Seven Sundays; Nonie Buencamino, Smaller and Smaller Circles; Bembol Roco, What Home Feels Like
• Best Actress — Joanna Ampil, Ang Larawan; Angeli Bayani, Bagahe; Iza Calzado, Bliss; Agot Isidro, Changing Partners; Nathalie Hart, Historiographika Errata; Maja Salvador, I’m Drunk, I Love You; Max Eigenmann, Kulay Lila ang Gabi na Binudburan pa ng mga Bituin; Julia Barretto, Love You To the Stars and Back; Dexter Doria, Paki; Gloria Diaz, Si Apple at si Chedeng
• Best Supporting Actor — Robert Arevalo, Ang Larawan; John Arcilla, Birdshot; Edgar Allan Guzman, Deadma Walking; Mon Confiado, Mga Gabing Kasinghaba ng Hair Ko; Ricky Davao, Paki; Dido dela Paz, Respeto; Loonie, Respeto; Jess Mendoza, Sa Gabing Nanahimik Ang mga Kuliglig; Aga Muhlach, Seven Sundays
• Best Supporting Actress — Odette Khan, Barboys; Adrienne Vegara, Bliss; Angeli Sanoy, Bomba; Chai Fonacier, Respeto; Yayo Aguila, Kiko Boksingero; Thea Yrastorza, Respeto; Cristine Reyes, Seven Sundays; Irma Adlawan, What Home Feels Like
• Best Original Screenplay — Khavan dela Cruz, Achinette Villamor, Jerry Gracio, Balangiga: Howling Wilderness; Jason Paul Laxamana, Instalado; Antoinette Jadaone, Love You To The Stars and Back; Gian Carlo Abrahan, Paki; Alberto “Treb” Monteras II, Njel de Mesa, Respeto; Fatrick Tabada, Si Chedeng at si Apple; Adrian Legaspi, John Bedia, The Chanters
• Best Adapted Screenplay — Ang Larawan, from the musical of the same title with libretto by Rolando Tinio, adapted screenplay by Waya Gallardo with contributions from Celeste Gallardo, Loy Arcenas, Alemberg Ang, Dennis Marasigan, Girlie Rodis and Ryan Cayabyab; Changing Partners, based on the musical of the same title by Vincent de Jesus, adapted screenplay by Vincent de Jesus and Lilit Reyes; Smaller and Smaller Circles, based on the novel of the same title by F.H. Batacan, adapted screenplay by Ria Limjap ang Moira Lang
• Best Cinematography — T.M. Malones, Baconaua; Albert Banzon, Balangiga: Howling Wilderness; Mycko David, Birdshot; Alex Espartero, Historiographika Errata; Boy Yñiguez, Last Night; Ike Avellana, Respeto; Victor Delotavo Tagaro, Yield
• Best Production Design — Jao Manahan, Alipato; Gino Gonzales, Ang Larawan; Marija Vicente, Timmy Harn, and Zeus Bascon, Balangiga: Howling Wilderness; Michael N. Espanol, Birdshot; Donald Camon, Julius Erving Somes, Historiographika Errata; Leeroy New, Nervous Translation; Popo Diaz, Respeto
• Best Editing — Carlo Francisco Manatad, Balangiga: Howling Wilderness; Lawrence Ang, Respeto; Jerrold Tarog, Bliss; Marya Ignacio, Changing Partners; John Torres, Shireen Seño, Nervous Translation; Victor Delotavo Tagaro, Yield
• Best Sound — Mikko Quizon, Stephen Lopez, Balangiga: Howling Wilderness; Aian Caro, Birdshot; Mikko Quizon, Bliss; Dempster Samarista, Krysver Gomez, Bundok Banahaw, Sacred and Profane; Mikko Quizon, Jason Conanan, Kathrine Salinas, John Perez, Nervous Translation; Corrine De San Jose, Respeto; Victor Delotavo Tagaro, Yield
• Best Musical Score — Ryan Cayabyab, Ang Larawan; Khavn Dela Cruz, Balangiga: Howling Wilderness; Francis de Veyra, Historiographika Errata; Joee Mejias, Medusae; Jay Oliver Durias, Respeto; Alyana Cabral, The Debutantes; Arnel Barbaron, Tu Pug Imatuy
• Best Visual Effects — Iar Arondaing, Instalado; Mothership, The Ghost Bride; Imaginary Friends Studios, Pwera Usog
• Best Original Song — “Twelve,” 12; “Ang Panday,” Ang Panday; “Gitik –Gitik,” Balangiga: Howling Wilderness; “Katurog Na,” Balangiga: Howling Wilderness; “Yung Pakiramdam,” Changing Partners; “Alaalarawan,” Kiko Boksingero; “Para sa Respeto,” Respeto; “Kabuwisit Ba,” Respeto; “Last Message from Earth,” Alipato, Historiographika Errata
• Best Short Film — Dory, Beverly Anne G. Ramos; Gikan sa Ngitngit nga Kinailadman, Kiri Dalena; Aliens Ata, Karl Glenn L. Barit; Engkwentro, Ryan Machado; Link, Mike Esteves; Babylon, Keith Deligero; Sorry for the Inconvenience, Carl Adrian Chavez; Suerte, Carlo Rhenz C. Fajardo — ZBC

Gov’t makes partial T-bills award

THE GOVERNMENT made a partial award of the Treasury bills (T-bill) it offered on Monday, rejecting bids for the one-year tenor, as investors await a possible tightening move from the central bank later this week.
The Bureau of the Treasury only awarded P9 billion out of the P15 billion it planned to raise yesterday even as total tenders spiked to P30.34 billion.
Almost half of the total tenders were for the shortest security on offer on Monday. Bids for the 91-day T-bills stood at P15.145 billion, thrice the programmed P5-billion borrowing. The Treasury made a full award of its offer as the rate inched down to 3.439% from 3.486% in the previous auction.
The government also raised P4 billion as planned via the 182-day papers, with total tenders reaching P10.62 billion. The average yield also slipped to 3.958% from last week’s 4.019%.
However, the Treasury rejected all bids for the 364-day security as offers reached just P4.58 billion, below the P6 billion the government wanted to borrow yesterday.
At the secondary market prior to the auction, the three- and six-month T-bills were quoted at 3.675% and 4.4%, respectively, while the one-year papers fetched 4.6%.
At the market’s close, the 91-day securities rallied to fetch 3.3822%, while the 182-day papers saw its yield inch down to 4.3933%. The rate of the 364-day T-bill was steady at 4.6%.
National Treasurer Rosalia V. De Leon told reporters on Monday that investors still prefer to place their funds in the short-tenored papers.
“A lot of the bids flocked to the shortest end of the curve — in the 91- and 182-[day tenors] — first, because the Bangko Sentral ng Pilipinas (BSP) will reduce their term deposit facility (TDF) volume to P60 billion. So it shows the preference for the short end,” Ms. De Leon said.
This week, the BSP will offer just P60 billion under the TDF from P90 billion previously.
Ms. De Leon added that investors factored in their uncertainties about the country’s inflation path.
“Also, the preference [for the short-end] continues to be because of the uncertainties about inflation. Inflationary expectations are also building up, so…hopefully the action of BSP on Thursday will have a calming effect.”
In a BusinessWorld poll, nine out of 11 economists said they expect the BSP to tighten monetary policy at Thursday’s meeting, with inflation hitting multi-year highs and showing slim signs of slowing in the coming months.
Inflation picked up to a five-year high of 4.5% in April. This was higher than the 4.3% print tallied the previous month.
BSP Governor Nestor A. Espenilla said ahead of the April data last week that inflation is becoming broader than initially expected according to latest observations.
“What we react to is whether it’s spreading and it is affecting expectations. And our reading, based on the latest data, it seems to have spread somewhat,” Mr. Espenilla said.
Asked on the rejection of bids for the one-year debt papers, Ms. De Leon said banks are “testing the tolerance level of the Treasury.”
“It’s not something that we will easily accept because they should also see our liquidity position. They should know by now,” she said, adding that the revenue collections of Bureau of Internal Revenue and Bureau of Customs contributed to the government’s comfortable cash position.
A trader shared this sentiment, saying bids by banks for the one-year securities were rejected because they was higher than expected.
“Preference was still in the short securities amid uncertainty of a possible rate hike in the upcoming [Monetary Board] meeting,” the trader added.
The Treasury is holding two auctions per week this quarter — one for Treasury bonds and another for T-bills — to reflect increased borrowing requirements.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product. — K.A.N. Vidal

Higher LPG sales drive Pryce’s Q1 income growth

PRYCE CORP. posted a 12.8% increase in first-quarter net income to P340.3 million, the company said, as volume of sales of liquefied petroleum gas (LPG) grew by around the same pace.
In a statement, Pryce said consolidated revenues rose by 6.3% to P2.35 billion during the January to March period, from P2.21 billion in the same period last year.
First-quarter volume sales of LPG in the Visayas-Mindanao regions increased by 12.9% to 21,992 metric tons (MT) from 19,487 MT previously. Comparable sales volume in Luzon fell by 2.1%.
“The anticipation of an increased LPG price due to the Jan. 1, 2018 effectivity of the TRAIN (Tax Reform for Acceleration and Inclusion) law, which would slap a P1 per kilo excise tax on LPG, probably took away 2 to 3 days worth of sales from January 2018 and instead added these to December 2017 sales. Thus, volume sales in January 2018 came out lower than they would have been otherwise,” the company said.
During the first quarter, the average LPG contract price was $519 per MT, which is lower by $19/MT than $538/MT, the average contract price for the same period last year.
“This also contributed to the lower growth in peso sales during the first quarter,” the company said.
Pryce said it was confident of achieving its target of 15% sales volume growth in the Visayas-Mindanao area and 20% net income growth in 2018.
“[The company’s] ongoing expansions in its marine-fed terminals and refilling plants across the country are expected to gradually show its effects, yield positive results and validate the company’s growth expectations for volume and net income in 2018,” it said.
Earnings during the first three months of the year translate to an earnings per share of P0.155, it said.
“Sometime this July 2018, the company will declare its second regular dividend for the year. A policy of giving out regular cash dividends was promised to shareholders in our stockholders’ meeting last year and is now being implemented,” Pryce said. — Victor V. Saulon

PLDT reduces Rocket stake to 2%

PLDT, INC. on Monday said it has completed the sale of most of its shares in German e-commerce investor Rocket Internet.
In a statement, PLDT said Rocket Internet has accepted 6,800,000 Rocket shares tendered by PLDT subsidiary PLDT Online Investments Pte. Ltd. at €24 per share or a total of €163.2 million. This represents around 67.4% of the Rocket shares held by PLDT Online.
From its equity ownership of 6.1%, PLDT Online will now have a 2% stake in Rocket.
PLDT said Rocket will settle the payment on or before May 14.
Rocket Internet earlier announced the buyback of up to 15.47 million shares through a public share purchase offer at €24 per share.
In August 2014, PLDT invested €333 million (around $362 million) for a 10% stake in Rocket, whose brands then included Southeast Asian e-commerce platforms such as Zalora and Lazada. In October that year, Rocket Internet went public, which effectively diluted PLDT’s stake to 6.1%.
PLDT Chairman Manuel V. Pangilinan had previously said the company may sell its position in Rocket to fund its capital expenditure (capex), which is expected to stay above P50 billion for this year. PLDT is set to expand its fixed and mobile networks as part of its five-year P260-billion capex program.
Mr. Pangilinan had said that there is “no pressure” to divest the remaining one third of its stake in the German company, and that the divestment would depend on the movement of the share price of Rocket. He said PLDT still sees its investments in Rocket as still valuable.
Shares in PLDT fell by P21 or 1.54% to close at P1,345 each on Monday.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — P.P.C. Marcelo

Davao City ideal for casino, gaming investments — study

DAVAO CITY — A study conducted by consultancy firm Property Interactive Marketing Enterprise (PRIME Philippines) indicates that Davao City is one of the most ideal locations for casino, gaming, and hotel investments.
“In our report for this month we tackled the current settings of the Philippines, why is it viable for the said industries. We would like to encourage investors of hotel or casino operators to go to Davao as (it is) really a viable place for the said industries,” Raphil D. Saguan, PRIME Philippines capital markets and investment associate, told media in a forum last week.
The firm cited that there was an 11.6% increase in casino and offshore gaming gross revenue from 2016 to 2017 in the Philippines, which can be attributed to the growth of the country’s international market.
Mr. Saguan said Davao is a good site because of the growing population that could serve as a source of both clientele and labor force, low poverty incidence, and increase in tourism traffic.
“As you look at it, we have a very good population (here), we can outsource human resources, and we have buying power,” he said.
He also cited that Davao has an average annual income of P247,000, which is close to the national average of P267,000.
“We see spending power among Davaoeños,” he said.
Competition in the casino and gaming sector is also low with only two existing major establishments.
“Only the one in Grand Regal (Hotel) and the one in Apo View Hotel,” Mr. Saguan said.
For tourism, the PRIME Philippines official said, “Currently we have 3.6 days average length of stay of tourists, both foreign and local, and daily expenditures is P4,270. That’s quite high. We also look at the higher demand of tourism related facilities or hotels. Despite having 10,512 rooms in 318 accommodations, we are still short.”
The company has standing non-disclosure agreements with five international hotel operators that are keen on expanding in Davao with the expected increase in direct international flights.
“We’re talking about a European based hotel, an American, and a Swiss, definitely these are world-renowned brands. They are interested in mainly putting up a hotel,” Mr. Saguan said. — Maya M. Padillo

Avengers: Infinity War scores second-biggest second weekend ever

LOS ANGELES — Avengers: Infinity War can check off yet another record: The second-highest second weekend of all time.
Disney and Marvel’s latest collaboration earned $112.5 million from 4,474 North American locations in its second frame. The 56% decline was just enough to top the record previously held by fellow Marvel title Black Panther, which made $111.6 million in its second weekend. Star Wars: The Force Awakens holds the prize for biggest second weekend, with a mighty $149 million in 2015. Only five films have ever hit the $100 million-mark in their second weekends.
In just North America, the superhero mashup has made $450.8 million. Among Infinity War’s numerous accomplishments is being the fastest film to gross $1 billion, in just 11 days. And the film has yet to open in China.
One of three weekend releases opening in Infinity War’s almighty wake is Overboard, anchoring in the second spot with a solid $14 million in 1,623 theaters. The MGM and Lionsgate Pantelion remake of Goldie Hawn-Kurt Russell’s classic romcom of the same name now stars Anna Faris and Eugenio Derbez. That three-day estimate washes in slightly ahead of Derbez’s last leading role, How to be a Latin Lover, which bowed with $12 million in 2017. Overboard is currently averaging a bleak 30% on Rotten Tomatoes. The audience score, however, is faring better with a 76%.
Slipping to No. 3 in its fifth weekend is Paramount Picture’s A Quiet Place. John Krasinski’s horror thriller made $7.5 million in 3,413 locations, bringing its domestic total to an impressive $159.8 million. The third weekend of Amy Schumer’s I Feel Pretty secured the fourth slot with $4.9 million from 3,232 theaters. Its North American tally currently sits at $37.8 million. Rounding out the top five is Dwayne Johnson’s Rampage. The Warner Bros. film grossed $4.6 million in 3,151 locations. In four weeks, its domestic total is $84.7 million.
Black Panther likely saw another boost from Infinity War. The Chadwick Boseman-starrer landed in sixth place, taking in $3.2 million from 1,641 locations in its 12th weekend. To date, Black Panther has made $693 million in North America.
Thanks primarily to Infinity War, the year to date box office is up 5.2%, according to comScore. — Reuters

BDO raises P8.2B from LTNCDs

BW FILE PHOTO

BDO Unibank, Inc. raised P8.2 billion from its long-term negotiable certificates of deposit (LTNCD), which it wants to use to manage the bank’s liabilities.
At the ceremonial listing of the investment instruments on Monday at the Philippine Dealing System (PDS), the Sy-led BDO said it raised P8.2 billion from the peso-denominated issue.
The notes will mature in 5.5 years and carry an interest rate of 4.375% to be paid quarterly until Nov. 7, 2023.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
Last month, the country’s biggest lender raised the size of its LTNCD offer to P8.2 billion from the original P5 billion amid robust demand from both retail and institutional investors.
The offering booked total subscriptions of P12.3 billion, more than twice the offer the bank initially intended.
Shortly after the bell-ringing ceremony, BDO senior vice-president Dalmacio D. Martin said proceeds from the long-term note offering will be used for liability management.
“For us, it allows us to better manage our liability mix and liability profile,” Mr. Martin told reporters, adding that the long-term notes provide investors “a whole new product to invest in” which is exempted from tax.
“If they hold it more than five years and one day, it’s tax-exempt as opposed to time deposits which are subject to 20% withholding tax. There is a clear net interest advantage to the investors.”
BDO last raised funds via LTNCDs in August 2017 and raised P11.8 billion — double the original P5-billion plan. These notes carry a 3.625% interest rate and will mature on Feb. 18, 2023.
BDO’s listing brings the total volume of outstanding securities listed at the Philippine Dealing & Exchange Corp. (PDEx) to P862.88 billion, floated by 47 companies.
“With this issuance, the SM Group’s total outstanding amount of bonds listed shall be P180.77 billion for share of 21% of the total face amount of [the total outstanding volume of securities] listed in the PDEx,” PDS Chief Operating Officer Antonino A. Nakpil said.
BDO shares closed at P128.50 each on Monday, up 50 centavos or 0.39%. — Karl Angelo N. Vidal

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