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Basic Energy plans to acquire 60% ownership in Filoil

BASIC Energy Corp. said on Monday that its board of directors had given the go signal to acquire up to a 60% ownership in local oil company Filoil Energy Co., Inc. through an equity investment.

“After further presentation… the members of the Board of Directors resolved to approve the proposed equity investment in Filoil Energy and acquire interest therein of up to 60%,” the listed holdings firm said in a regulatory filing.

The company said eight of its directors voted in favor of the planned investment, with two officials abstaining since they have direct and indirect interests in Filoil Energy.

The move to invest in the oil firm earlier received the green light from the firm’s risk and related party transactions committees.

BusinessWorld has reached out to Basic Energy for more details on the planned investment, but the firm has yet to reply as of deadline time.

Last month, the corporate regulator approved the doubling of Basic Energy’s authorized capital stock to P5 billion from P2.5 billion previously. The firm asked for a higher capital stock “to raise funds for energy projects and expand its existing business operations.”

In May, the de Venecia-led company secured from the Energy department a service contract for a planned 50-megawatt wind project in Mabini, Batangas.

The wind energy service contract calls for a non-extendible, five-year, pre-development phase and a 25-year development stage, counted from contract signing.

Basic Energy also holds service contracts for the exploration and development of geothermal energy in Batangas, Bataan, Benguet, Camarines Sur, and Sorsogon.

Basic Energy shares at the local bourse improved 5.26% or three centavos to finish at P0.60 apiece on Monday. — Angelica Y. Yang

After a hard year, a house bill targets helping the creative industry

FREEPIK

IT HAS been over a year since audiences have been able to laugh and cry in a movie theater, or sing along with their favorite band in a concert. While the creative sector in the country has managed to transfer activities and events online, it still cannot operate as vigorously as before.

When most of the creative sector stopped operations last year, the indefinite lockdowns led to job losses amongst creative freelancers and workers, artists, and performers.

The National Live Events Coalition PH, a movement of professionals and organizations from the live and social events industry reported a revenue loss of more than P133 billion, affecting more than 400,000 jobs.

According to ilostmygig.ph, a website that collects data on the impact of the COVID-19 pandemic on the country’s arts, culture, independent businesses, and creative industries, its survey recorded a total loss of income of more than P268 million, impacting 4,458 professionals during the strict lockdowns in 2020.

HB10107
This is the situation that backgrounds House Bill (HB) 10107 or the Philippine Creative Industries Development Act, a measure aimed at supporting the creative sector. It was submitted by the House Committees on the Creative Industry and Performing Arts, Appropriations, and Ways and Means on Aug. 30 this year, substituting for House Bill Nos. 4692, 6476, and 8101.

It was passed on the second reading on Sept. 13 and approved for third and final reading on Sept. 20.

The measure seeks to promote and develop creative industries, and allocated funding for them. It also aims to protect and strengthen the rights of, and cultivate economic activity of, creative firms and individuals, works and creative industry stakeholders as well as indigenous cultural communities.

“Creative successes of Filipinos, to date, have almost always been hinged on the artists’ own individual efforts, i.e., with very little to no government support which is why we believe that Filipino creatives, while already competitive, have yet to harness the full potential of their creativity,” Pangasinan 4th District Rep. Christopher “Toff” de Venecia said in an e-mail to BusinessWorld. He is the House Committee on Creative Industry and Performing Arts Chairperson.

Mr. De Venecia added that among creative stakeholders’ concerns that were considered in drafting the measure include the absence of a “singular government agency that caters to their needs,” the “lack of a legal definition of the creative sector” which led to difficulties for creative professionals in identifying which sector they belong to when applying for bank loans, registering with the Bureau of Internal Revenue, or obtaining health insurance.

One of the major points of the bill is the creation of the Philippine Creative Industry Development Council which will be attached to the Department of Trade and Industry (DTI). The Council will be composed of 17 members — nine regular members from the private sector who will represent each creative industry domain, and eight ex officio members from government agencies.

“Although we are seeing great developments in this area, there are still gaps between how private sector leaders approach issues relating to the creative industries versus how government officials treat the same. There needs to be a mindset shift about how the government views the creative economy, and we believe that this can start to happen if we put representatives from the government on the same decision-making table as the private sector,” said Mr. De Venecia.

The Philippine Creative Industry Development Council will be a Creative Workers’ Welfare Committee. The bill also makes provisions for a Creative Educational Plan, and The Creative Industry Development Fund for research.

CONCERNS
While the House Bill promotes the development of the creative industry, the organization Concerned Artists of the Philippines (CAP) has expressed concerns on how the bill defines provisions on creatives labor welfare, support for MSMEs, educational support, and grassroots participation.

“Any industry in society cannot be healthy or sustainable if its workers are underpaid, overworked, working in unsafe conditions, have little access to health care and insurance, or fear to exercise their political and civil rights for self-organization. This definitely applies to the creative industry too,” said Lisa Ito, University of the Philippines-Diliman College of Fine Arts faculty member and CAP Secretary-General, in an e-mail to BusinessWorld.

“Any industry is ultimately built on the backs and labor of workers. Any effort therefore to develop the industry will have to address these questions of how it will change and improve the lives of people on the ground who comprise the labor of the creative industries,” Ms. Ito added.

After conducting study groups and consultations with their network, CAP wrote a position paper and addressed its concerns directly to Rep. Sarah Elago of the youth sectoral partylist Kabataan Partylist and the rest of the Makabayan bloc in Congress, and to the office of Mr. De Venecia.

“Both the proponent and the Makabayan bloc representatives made an effort to listen to our position and address what could be revised at that point in the bill’s progress in the House. Of course, these are still not enough to fully address the concerns raised in the paper, but it is a start,” Ms. Ito said.

Ms. Ito commented that the creation of a Creative Workers’ Welfare Committee is “a positive development” and suggested that the Committee “provide support and foster a climate conducive for the growth of creative organizations.

“The committee should be open to consultations, proactively initiate programs to study and improve welfare and uphold socio-economic and political rights, and not allow violations such as the red-tagging of individual artists and cultural organizations, especially community-based formations, to happen,” she said.

CURRENT STATUS AND OUTLOOK
If the Bill is passed into law, one of its long-term goals is to establish the Philippines as the leading creative economy in ASEAN by 2030.

“I think that we can properly plan and lay the foundation for this creative future, and this shall be one of the primary tasks of the Council,” Mr. De Venecia said, admitting that it is a “lofty goal.”

“A Creative Industries Development Plan shall be created, which shall contain targets as to value creation, contribution to GDP (gross domestic product), jobs created, intellectual property targets, market creation and expansion (whether domestic or international), and investment targets,” said Mr. De Venecia. “It follows that these predetermined targets will influence how government programs for the creative industries will be streamlined.

“While targets can be adjusted along the way, the point is that we cannot really get to a goal without planning for it ahead of time. We cannot grow what we don’t know.”

Ms. Ito stressed the importance asking, “For whom is development for?”

“The experience of growth in other countries and investment in the Philippine landscape, throughout history, has taught us that profit does not necessarily equate to progress, or development for the people,” Ms. Ito said.

“We must not forget that our creative industries can shape our country’s history and change the lives of communities for better or for worse, so let us always be vigilant towards the ends and means of development,” she added.

The committee is hopeful that the Senate will approve the House Bill before the year ends.

If the measure is approved, Mr. De Venecia explained, “There will have to be bicameral committee meetings where the versions of the lower house and the senate will be reconciled if there will be conflicting or differing provisions.” After which, it will be submitted to the President for his signature and approval.

“We are confident that the [HB10107] will become law before the next set of officials are elected,” he said. — Michelle Anne P. Soliman

PDO launches township project in Batangas

PUEBLO DE ORO Development Corp. is developing a 42-hectare township in Malvar, Batangas. — COMPANY HANDOUT

THE PROPERTY development arm of the ICCP Group launched a 42-hectare township project in Malvar, Batangas.

In a statement, Pueblo de Oro Development Corp. (PDO) said Townscapes Malvar will complete the ICCP Group’s 212-hectare “live-work” community development in Batangas.

The project will be composed of exclusive residential subdivisions, five hectares of commercial area and an educational hub. The masterplan was done by architectural firm Pomeroy Studios, whose works include the Kallang Alive in Singapore and BSD Digital Hub in Indonesia.

PDO said Townscapes Malvar is adjacent to a 170-hectare industrial park for light manufacturing that is being developed by Science Park of the Philippines, Inc. (SPPI). SPPI is also a member of the ICCP Group.

“The goal of Pueblo de Oro is to create a landmark in the heart of Batangas, with a vibrant and green mixed-used township inspired by Southern Luzon’s urban charm,” PDO President and Chief Operating Officer Prim Nolido was quoted as saying in a statement.

Townscapes Malvar is accessible via the Southern Tagalog Arterial Road (STAR), just few minutes from Malvar Exit.

“Malvar, Batangas is also an ideal location because of its proximity to the Batangas International Port, which has attracted manufacturing and industrial companies to locate in the province, thereby providing employment opportunities,” Mr. Nolido said.

He noted areas south of Metro Manila have benefitted from the increasing number of families relocating from the capital during the pandemic.

PDO will develop the 15-hectare Pueblo de Oro Residences and 12-hectare Pueblo de Oro Townhomes within Townscapes Malvar. — Cathy Rose A. Garcia

Maynilad warns of water interruptions due to gov’t flood control project

CONSUMERS being served by Maynilad Water Services, Inc. are set to experience water interruptions later this month due to a flood control project of the government, the west zone concessionaire said on Monday.

Ronaldo C. Padua, Maynilad water supply operations head, said in a virtual briefing that the water interruption will range from 25 to 85 hours and will begin on Oct. 25 (11 a.m.) up to Oct. 28 (11:59 p.m.).

Affected customers will be those situated in parts of Las Piñas, Makati, Manila, Parañaque, Pasay, as well as parts of Cavite province such as Bacoor, Cavite City, Imus City, Kawit, Noveleta, and Rosario.

“Around 28% or 421,000 water service connections (WSC) of Maynilad’s total 1.5 million WSCs will be affected. This involves about 2.9 million customers. Of these, some 60,000 WSCs or around 420,000 customers in Sampaloc, Manila will have no water for three consecutive days,” he added.

Mr. Padua said the interruptions will be caused by the realignment of Maynilad’s existing pipeline along Sobriedad corner Cristobal St. in Sampaloc to give way for the government’s flood control project.

The project under the Department of Public Works and Highways (DPWH) involves the installation of a drainage line along Cristobal St. It aims to address flooding issues in Manila. “The affected pipeline will be cut and will be replaced with a cross-under pipe to allow the drainage line to be installed by the DPWH. Due to the massive size of the affected water pipeline, which is seven feet in diameter, its realignment will take almost four days or 85 hours,” Mr. Padua said.

Further, Mr. Padua said the water concessionaire will conduct other activities such as leak repairs and maintenance works in several pumping stations while the service interruption caused by the pipe realignment is ongoing.

Maynilad will deploy 60 mobile water tankers and install 14 stationary water tanks to serve customers in areas that will experience three straight days of interrupted water service.

It added that local government units and local fire bureaus were tapped to augment the number of water tankers that can deliver water to affected areas.

Maynilad also urged its customers to store enough water for the duration of the water service interruption to reduce inconvenience.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Salient points of HB 10107

HOUSE Bill 10107, or the Philippine Creative Industries Development Act, defines creative industries as “trades involving persons, whether natural or juridical, that produce cultural, artistic, and innovative goods, products, and services, where such goods and services originate in individual creativity, skill, and talent and have a potential to create wealth and livelihood through the generation and utilization of intellectual property.”

It also defined the creative industry domains as the following: audiovisual media, digital interactive media, creative services, design, publishing, and printed media, performing arts, visual arts, traditional cultural expressions, and cultural sites.

Section 3 of the measure mandates the creation of the Philippine Creative Industry Development Council which will be attached to the Department of Trade and Industry (DTI). The Council will be composed of 17 members: nine regular members from the private sector who will represent each creative industry domain, and eight ex officio members from government agencies — the Departments of Education (DepEd), Science and Technology, Tourism, Information and Communications Technology, and of Trade and Industry; the National Commission for Culture and the Arts (NCCA), Intellectual Property Office of the Philippines, and Commission on Higher Education (CHED).

The nine private sector representatives must be nominated by private sector groups to the Department of Trade and Industry (DTI) through valid endorsement letters signed or attested to by the group’s members and/or officers. The DTI will then create a shortlist from which the President of the Philippines will appoint the private sector representatives in the Council.

The obligations of the Council include defining each creative industry’s economic goals and performance monitoring, and maintaining a database about the sector.

Among its functions, the private sector representatives shall oversee the promotion, distribution, and export of the creatives’ outputs, protection of their intellectual property, endorsement to the DTI of prospective multi- and bi-lateral international trade agreements, and the issuance of guidelines and criteria in identifying the persons and stakeholders for aid from the State in times of national emergency.

Under Sec. 5, the creation of a Creative Workers’ Welfare Committee which is a standing committee attached to the Council which “shall ensure that creative freelancers and creative workers have access to sustainable and dignified livelihood in the creative industries.”

“The Creative Industries in the bill are defined broadly enough to cover all workers and freelancers in the sector. Thus, all the programs institutionalized in the bill are envisioned to benefit them as well,” the bill’s backer, Pangasinan 4th District Rep. Christopher “Toff” de Venecia, said in an e-mail to BusinessWorld.

“It should be noted though that most of the programs in the bill are reserved for members of business support organizations and/or creative workers associations. This means that freelancers and workers must belong to at least one creative organization to receive the proposed benefits and incentives,” he explained. “This was an intentional principle behind the bill since the authors believe that creative stakeholders must band together in groups for purposes of representation, mutual aid, and enjoying other forms of support.”

Meanwhile, Sec. 18 states the establishment of a Creative Educational Plan by the National Government Agencies such as the DepEd, CHED, and Technical Education and Skills Development Authority (TESDA) for education, scholarships, and technical skill development programs in the arts and creative sectors.

Through the House Bill’s The Creative Industry Development Fund, Special Account in the General Fund with the National Treasury shall be established. Referred to as the Fund, it is for the purpose of for research and development, marketing and trade promotion, human resource development, programs for the welfare of artists, workers and other stakeholders through accredited business support organizations and creative workers associations.

An appropriation of P5 billion in the House Bill’s earlier drafts was removed and its budget will be allotted in accordance with the annual General Appropriations Act to ensure that the programs in the measure have a legal basis for funding.

“As an attached office to the DTI, the Council will be given its chance to propose its annual budget to the Department of Budget and Management (DBM) for inclusion in the National Expenditure Program, and then to lobby to Congress during budget deliberations,” Mr. De Venecia said. — MAPS

SMDC plans to unveil 5 more projects before end-2021

SM Development Corporation President Jose Mari Banzon

SM DEVELOPMENT Corp. (SMDC) is expected to launch five new developments by the end of the year, as it bets on strong demand from young workforce and overseas Filipino workers (OFWs).

In a statement, SMDC President Jose Mari Banzon said there will be “no letup” in the company’s commitment to invest heavily in projects that address the needs of the market.

Despite the pandemic, he noted the real estate industry’s growth will continue to be driven by the current housing shortage and demand from young workers and OFWs.

“SMDC developed residential features designed to meet the multi-faceted needs of young Filipinos. The residential designs of our developments include powerful connectivity, shared working spaces, accommodating towards ride-sharing services and many features geared towards wellness, safety, and security — hallmark features of any modern living space,” he said.

Since the pandemic began last year, SMDC has launched ten projects located in central business districts such as Makati and the Mall of Asia (MOA) complex, and in growth centers around the country. These include a residential-office development known as ICE Tower, and SMDC JOY Residences, a garden community with four-floor residential buildings.

SMDC, which accounts for 60% of listed SM Prime Holdings, Inc.’s consolidated revenues, saw an 8% improvement in its operating income to P10.4 billion in the first half of 2021 from P9.7 billion a year ago.

Six-month revenues for SMDC jumped by three percent to P24.55 billion, as net reservation sales rose by 30% to P55.1 billion.

“Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the National Government,” the listed company said in an August statement.

Gov’t makes full award of T-bills

BUREAU OF THE TREASURY FACEBOOK PAGE

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as rates moved sideways after the country’s central bank chief said the regulator is unlikely to hike borrowing costs anytime soon.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Monday as total tenders reached P36.088 billion, more than double the initial offer but lower than the P46.594 billion in bids logged in the previous auction.

Broken down, the BTr raised P5 billion as planned via the 91-day debt papers from P8.68 billion in bids. The three-month T-bills fetched an average rate of 1.113%, up by 1.8 basis points (bps) from the 1.095% seen at last week’s offering.

The BTr also borrowed P5 billion as programmed from the 182-day T-bills as the tenor attracted tenders worth P16.868 billion. The average yield of the six-month instruments slipped 0.1 bp to 1.39% from 1.391% a week ago.

Lastly, the government made a full P5-billion award of the 364-day securities it offered on Monday as bids reached P10.54 billion. The average rate of the one-year T-bills stood at 1.604%, up by 1.7 bps from the 1.587% fetched last week.

It also opened its tap facility to raise an additional P3 billion via the one-year instruments.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that T-bill rates moved sideways after Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said over the weekend that raising rates “too early” would harm economic recovery.

On Monday, Mr. Diokno said in an interview with ANC that “there will be no policy adjustments between now and end of year.” The BSP has two meetings left this year.

Mr. Diokno added that the elevated inflation seen in recent months is transitory and is because of low supply.

Headline inflation stood at 4.8% in September, easing from the 4.9% recorded in August. For the first nine months, inflation averaged at 4.5%.

A trader added that T-bill yields were mixed on Monday due to Mr. Diokno’s comments about inflation.

“Mr. Diokno is clearly on the transitory side in terms of inflation, and he believes that inflation will remain manageable in the medium term,” the trader said.

“In fact, BSP expects inflation to be at midpoint of their 2% to 4% target in 2022 and 2023. That said, I think that gives them some room to keep their policy rates steady at least until this year to support the country’s fragile economic growth,” the trader added.

The BSP expects inflation to return to the 2-4% range and average at 3.3% and 3.2% in 2022 and 2023.

Meanwhile, a second trader said in a Viber message that T-bill rates moved sideways on the back of sustained demand as investors prefer to park their funds in short-term papers.

On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of five years and six months.

The BTr is looking to raise P200 billion from the local market this month: P60 billion from weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez

2GO offers perks to vaccinated passengers

FACEBOOK.COM/2GOTRAVEL

TO BOOST domestic tourism, 2GO Group, Inc.’s 2GO Travel is offering a “free room upgrade” to fully vaccinated individuals.

2GO Travel, the group’s brand for its passage business, said in an advisory posted on its official Facebook page that it is offering “room upgrade promo” to all fully vaccinated passengers who will book and travel with the company.

“[2GO believes] that the key to local tourism recovery is for us to achieve herd immunity by getting vaccinated,” 2GO Travel said.

“We want to reward you for it,” it added.

Despite the pandemic crisis, 2GO Travel said it continues to connect Manila to all the major ports in Visayas and Mindanao.

2GO Group is also engaged in the cargo business through its brand 2GO Freight.

The listed company’s freight revenue for the first half of the year hit P1.58 billion, up 15.3% from P1.37 billion in the same period a year ago.

Meanwhile, travel revenue dropped 68.6% to P221.84 million from P706.50 million in the same period last year.

“Given the restricted mobility in and out of the country and the curtailed economic activities affecting demand not only in the Philippines but in other countries, 2GO experienced a decline and gradual recovery in sales/revenue volumes as aforementioned quarantine measures were slowly relaxed,” 2GO said in its second-quarter report. — Arjay L. Balinbin

China home sales plunge as Evergrande crisis deters buyers

REUTERS

CHINA’S residential property slump dragged on last month as the debt crisis at China Evergrande Group spread to other developers, keeping buyers away.

Home sales by value tumbled 16.9% in September from a year earlier, following a 19.7% drop in August, according to Bloomberg calculations based on National Bureau of Statistics data released Monday.

The property slowdown is one of many headwinds facing the Chinese economy, which saw growth slow last quarter, separate figures showed. Government efforts to curtail developers’ leverage has exacerbated a cash crunch at Evergrande that’s now spreading to other firms, prompting buyers to think twice about putting down deposits for homes that are yet to be built.

The sales slump may fuel a vicious cycle by worsening the cash shortage at developers and forcing them to offer bigger discounts. That in turn could reduce home prices in a country where people keep a large chunk of their wealth in real estate.

China’s central bank broke its silence on the Evergrande crisis last week, saying risks to the financial system stemming from the developer’s struggles are “controllable” and unlikely to spread. At a virtual meeting of the Group of 30 on Sunday, People’s Bank of China Governor Yi Gang said Evergrande’s liabilities were spread across “hundreds” of entities in the financial system so that there is “not much concentration.”

China’s government has been trying to rid the property sector of excess debt, based on the notion that homes are for living in rather than speculation. Yet carrying out that task is a delicate exercise in a country where the broader property sector makes up about 23% of gross domestic product, according to estimates by Goldman Sachs Group, Inc. 

Regulators have begun easing restrictions on home loans, a move that could help first-time buyers and boost transactions following an unprecedented cap on banks’ exposure to the real estate sector. Officials told some major banks last month to accelerate approval of mortgages in the fourth quarter, Bloomberg reported last week.

China’s developers have faced a wave of credit rating downgrades and now account for about half of the world’s distressed debt, according to data compiled by Bloomberg. Contagion fears intensified over the past two weeks after a surprise default by Fantasia Holdings Group Co. and a warning from Sinic Holdings Group Co. that its default was imminent. — Bloomberg

Quasi-banks’ NPL ratio hits 10.4%

BW FILE PHOTO
QUASI-BANKS’ nonperforming loan ratio rose year on year. — BW FILE PHOTO

SOURED DEBT held by quasi-banks picked up to P14.593 billion as of end-June for a 10.4% nonperforming loan (NPL) ratio, based on data from the Bangko Sentral ng Pilipinas.

These bad loans climbed 87.7% from the P7.776 billion seen in the same period of 2020. Quasi-banks’ NPL ratio as of end-June 2020 was at 5.8%.

Meanwhile, the gross loan portfolio of these quasi-banks increased 5% to P139.979 billion as of end-June from the P133.367 billion a year earlier.

Their nonperforming assets (NPA), which include real and other properties acquired, likewise rose 81.9% to P16.055 billion from the P8.825 billion a year ago.

Meanwhile, their restructured loans stood at P2.065 billion as of end-June, more than four times (360%) the P449 million seen in the same period of 2020. This brought their share in their entire loan book to 1.5% from 0.3% a year earlier.

As asset quality deteriorated, quasi-banks beefed up their loan loss reserves to P5.259 billion in the first half of the year, increasing by 90% from the P2.768 billion in the same period of 2020. These buffers are equivalent to 3.8% of their entire loan portfolio, up from 2.1% a year ago.

With this, their NPL coverage ratio stood at 36% as of end-June, improving slightly from the 35.6% a year earlier.

Meanwhile, quasi-banks’ allowance for NPAs reached P5.432 billion in the first semester, jumping 85.9% from the 2.923 billion in the same period of 2020.

This brought NPA coverage to 33.8% as of end-June, a tad higher than the 33.1% a year earlier.

Financial institutions with quasi-banking functions include financing companies and investment houses. — L.W.T. Noble

Premiere Horizon, LDA complete share deal

PREMIERE Horizon Alliance Corp. (PHA) on Monday said it received P71.54 million from global investment group LDA Capital Ltd. for its subscription to PHA’s shares.

The company said the subscription agreement was inked on Oct. 15.

“The funds will be used for the expansion of its projects in real estate through subsidiaries West Palawan Premiere and Goshen Land Capital, as well as new investments in fintech and mining,” PHA said in a disclosure to the exchange.

In July, PHA’s board of directors approved the put option agreement with LDA Capital to provide PHA up to P2.5 billion in committed equity capital within the next 36 months, which may be accessed through exercising put options. Premiere Horizon issued a put option notice on Aug. 12.

“LDA has remitted to PHA a total of P71,543,350 as full payment for the subscribed shares,” Premiere Horizon said, adding that LDA Capital’s investment “confirms its belief in the growth prospects of PHA.”

LDA Capital has subscribed to 70.835 million new PHA primary shares with a par value of 25 centavos for P1.01 apiece. The subscription price is said to be 90% of the average volume-weighted average price of PHA shares during the pricing period.

On Monday, PHA shares at the stock exchange went down by 2.47% or two centavos, closing at 79 centavos apiece. — Keren Concepcion G. Valmonte

Hollywood film-crew union reaches tentative deal, averting strike

NATHAN DEFIESTA/UNSPLASH

LOS ANGELES — A union that represents about 60,000 behind-the-scenes workers in film and television reached a tentative deal with producers on Saturday, averting a strike that threatened to cause widespread disruption in Hollywood, negotiators said.

The International Alliance of Theatrical Stage Employees (IATSE), which includes camera operators, make-up artists, sound technicians and others, said negotiators agreed to a new three-year contract.

“This is a Hollywood ending,” Matthew Loeb, president of the union, said in an e-mailed statement. “Our members stood firm. They’re tough and united.”

Shutdowns from the coronavirus disease 2019 (COVID-19) pandemic had caused a production backlog that led to crews working up to 14 hours a day to feed programming to streaming services.

The union had threatened to strike starting Monday if it was unable to reach an agreement with the Alliance of Motion Picture and Television Producers (AMPTP).

A strike would have shut down film and television production around the United States in the biggest stoppage since the 2007-2008 strike by Hollywood screenwriters. It would have hit a wide range of media companies including Netflix Inc., Walt Disney Co., and Comcast Corp.

IATSE was seeking to reduce working hours and raise the pay of members who work on shows for streaming platforms, where lower rates were set 10 years ago when online video was in its infancy.

IATSE, in its statement, said the proposed contract addresses those issues, including rest periods, meal breaks, a living wage for those on the bottom of the pay scale, and significant increases in compensation to be paid by new-media companies.

The new labor agreement is subject to approval by IATSE’s membership. —  Reuters