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Wine and the best of nature at El Nido

The panoramic Small Lagoon where we did our kayaking

Prior to the latest surge anew of COVID-19 infections at the start of 2022, I was able to bring my family on a vacation to El Nido in Palawan. This was our first family vacation trip since end of 2019, and my first time to travel by air since escaping Milan in February of 2020 when COVID was about to devastate Italy and Europe.

El Nido was actually a third choice, as Boracay was my first preference but the Shangri-La hotel resort was fully booked and I had promised my family we would stay at the Shangri-La this time as we had been to Boracay multiple times but never stayed there. Siargao was my second choice (before Typhoon Odette’s cruel destruction) but I could not get the right flight, then finally it was El Nido.

To be honest, it was quite cumbersome to travel anywhere, including to local tourist spots. Aside from all the vaccination cards and vaccination certificates, you also need the S-Pass and the Travel Coordination Permits (TCPs), and also need fully paid bookings from airlines and hotels — but it was all good as we got time to fulfil all the requirements.

Then Typhoon Odette happened and at first, I thought our vacation would need to be postponed as Palawan was also badly damaged. Our flight via Philippine Airline (PAL) to Puerto Princessa enroute to El Nido was affected as roads leading to El Nido were initially deemed impassable, forcing me to look for another alternative and there was only one airline that flies direct to El Nido via the Lio Airport. So, we took Air Swift and paid a premium for the rush nature of the booking. As of this writing PAL has yet to agree to rebooking or even recrediting our flights which they should.

While this family trip was getting off to a more expensive and rockier start than anticipated, the view from the plane closing in on El Nido somehow changed all my initial concerns. Beautiful mountains, the turquoise water and white sands beaches were simply too breathtaking and soothing to feel bad. Air Swift was also a joy to ride in, with its on-time and simple no frills approach as my good first experience with them. Air Swift uses the ATR42-600 aircraft which can comfortably sit 50 passengers and is manned by two courteous flight attendants, and, I presume, two pilots. The runway at the Lio Airport is probably not that long so as passengers we felt the rocky landing and abrupt braking.

PROUDLY LOCAL
I have been to Bali, Indonesia; Phuket, Thailand; Da Nang, Vietnam and other places among our Southeast Asian counterparts. I do think El Nido, and even Boracay, are more beautiful and naturally more fascinating than any of them.

Perhaps I was being a prisoner of the moment, but my first trip to El Nido was nothing less than magical. Admittedly we were at El Nido during this pandemic period and had more of the beauty of the island to ourselves as visitors were very limited and even foreign tourist sightings were almost non-existent.

El Nido is the gateway to the spectacular Bacuit Archipelago which comprises of around 45 islands and islets. Our two-day island-hopping tour of a handful of these islands showed us how each island has its own rock formation and unique geological makeup. We visited the Big Lagoon, Small Lagoon, Secret Lagoon, Cadlao Lagoon, Seven Commandos Beach, Papaya Beach, and a few more. We did some hiking (a very steep hike in Cadlao Island), kayaking, swimming, snorkeling, and some sun-bathing and it was an amazing, paradise-like family bonding experience.

The weather was quite good, but the sea travel was very wave-y and slightly turbulent. We had to contract a private speed boat to get around, instead of the usual bangka boat — but even a speed boat was unable to get us to Shimizu Island as our boat captain called it too risky because of the rough waves.

After all the island tour adventures, nighttime was reserved for old-fashion peace and serenity. But locals were telling us that we missed the time when El Nido was bustling even through the wee hours of the morning, and that was not so long ago — barely 22 months, just prior to the COVID pandemic.

RESTAURANTS IN LIO BEACH
There were only a handful of restaurant choices within the Lio beach where our hotel was located… conspicuously closed with strategic beach front views were Manille Beach Bar, The Jungle Bar, and Bead Café. I also saw a closed The Red Crab restaurant (a familiar Manila restaurant name). Our choices for food during dinner (as normally we were out after breakfast) were limited to our hotel Huni Lio’s room service food, El Nido Grill, D’Factory, Punta Playa, and Globys Restaurant and if we crossed to the nearby Seda Hotel, then we added the Seda hotel restaurants.

Thankfully there are several restaurants in the city proper including in the Barangay Buena Suerte strip, just some 20 minutes through car rental or tricycle. This is where you can find ArtCafe, probably El Nido’s most famous restaurant and a favorite tourist dining spot.

THE EL NIDO WINE LISTS
Seda Hotel is a luxury hotel with its own enviable frontage of the Lio Beach, and yet their wine list is quite limited and thin. Their pouring wine is decent — the Renmano Chairman’s selection Chardonnay and Cabernet Sauvignon from Southeastern Australia — while there are only six wines sold by the bottle with two selections apiece for red, white and rosé.

For red, there is Italy’s Nero d’Avola, a peculiar grape for most, but actually Sicily’s proudest indigenous red grape varietal. The other red is even more obscure as it is a red wine from Rias Baixas, Spain — home of the delectable Albarińo white wine. This red from Rias Baixas is made from a blend of grapes including Mencia, which is more famous for this varietal in nearby Bierzo region, and another rarely heard of grape called Caińo (known as Boraccal in neighboring Portugal).

For white, there is the sweet-scented Grillo, also from Sicily Italy. Grillo is known more for being one of grape varietals used for the fortified wine Marsala. The other white wine is the French Pinot Gris, or more renowned as Pinot Grigio elsewhere from the Alsace region. If I had to go with Alsatian wines, my first pick would be a Riesling, and then a Gewurztraminer.

For rosé, they carry a Bordeaux and a Provence wine.

El Nido Grill and D’Factory do not serve wine at all. El Nido Grill is more about beers and D’Factory is a dessert place with delicious ice creams and crepes. On the other hand, Globys has a handful of wines, but they do have an all day-long Happy Hour “Buy 1 Take 1” offer on their cocktails. Twice in our four nights we had cocktails there.

Punta Playa, I found out, was actually the only restaurant that opened at Lio Beach during the pandemic period and started operations just three or four months ago. Punta Playa took over the former location of Shaka, a popular health food restaurant known for fruit smoothies and which has branches in Taguig, Siargao, Bohol, and Cebu, which but closed down the El Nido place because of the pandemic, like several other restaurants did too in Lio Beach. Punta Playa is a Mediterranean restaurant with more of a Spanish flair to it. The menu as well as the wine list have more Spanish entries. The restaurant is managed by a Spaniard, Marcos Olalla, who had a prior stint with the exclusive Cauayan Island Resort also in El Nido. Marcos also had experience in Metro Manila with his stint at Las Flores in Podium.

Punta Playa has a wine list with 17 selections, more than any establishment in the Lio Beach area, with nine of the 17 wines being Spanish. But I love the list because it has my favorite Spanish wines regions including Rioja, Ribera del Duero, Toro, Cava, and even Txakoli. Sadly because of Typhoon Odette, the waitstaff was telling me some of the wines were not available during our visit.

The top wine in the Punta Playa list is Macan Rioja, a wine collaborated on by the famed Vega Sicilia and Bordeaux royalty Benjamin Rothschild. This wine, priced at P5,800/bottle restaurant price, is pretty good given the pedigree of the wine, and could easily cost 30% higher when found in a Manila restaurant wine list.

The only other restaurant we tried in El Nido was the local and tourist favorite ArtCafe. This restaurant is often packed and even during our visit when travel was restricted, the place was busy. ArtCafe started in 1995 and was a joint venture between a Swiss woman, Judith, and a local guy, Tani (I read this in the menu). This second-floor restaurant has a clear view of the Buena Suerte Beach where the boats docked, and this is also where island-hopping tours start and end.

The restaurant’s wine list has close to 30 different items — probably the largest in selection among fellow restaurants, but they are mostly the commercially popular ones like Yellow Tail and Hardys from Australia, Gato Negro and Ventisquero from Chile, and these are the same wines available in their ground floor souvenir shop and grocery.

While obviously my journey to El Nido was mainly for vacation and holiday relaxation, I also thought that, like Bali or even Phuket, I could get a very good wine list and food and wine experience. El Nido is not quite there yet, but with so much beauty of landscape and natural geological blessings, the wine list should be the least of my concerns. Over time, when tourism can flourish again, I am betting that the restaurants in El Nido will be upgrading their wine list to world class standards, and I will be the happiest “Juan” when this happens.

The author is the only Filipino member of the UK-based Circle of Wine Writers. For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail the author at wineprotege@gmail.com, or check his wine training website https://thewinetrainingcamp.wordpress.com/services.

Megaworld to buy ‘prime’ Manila property for P1.89B

MEGAWORLD Corp. announced on Wednesday that it had forged a memorandum of agreement with Manila Jockey Club, Inc. to buy a 2.2-hectare property in Sta. Cruz, Manila.

In a disclosure filed with the stock exchange, the listed township developer described the property as “part of the historic 16-hectare San Lazaro Tourism and Business Park in the northern part of Manila.” It also said that the “prime” real estate would boost the company’s presence in the city.

In a separate disclosure, Manila Jockey Club told the exchange of the same agreement and disclosed the purchase price at P1,887,733,375.

The listed racetrack operator said it had agreed to sell, transfer and convey all of its rights, title and interest in “certain parcels of land,” which it placed at 22,143.50 square meters, to Megaworld.

“The definitive sale agreements shall be executed upon the submission of closing documents to the satisfaction of buyer,” it said.

Megaworld said it currently owns nearly 5,000 hectares of land across the country, with around 300 hectares located in Metro Manila, covering nine urban townships and lifestyle estates.

“Currently, our big projects in the City of Manila are concentrated in the Binondo district, particularly within our Lucky Chinatown project where we have a lifestyle mall, condominium towers, a cultural museum, and a hotel,” Megaworld Chief Strategy Officer Kevin L. Tan said in the disclosure.

“When we finalize the purchase of this land in San Lazaro, this will surely be part of our township portfolio expansion in Metro Manila,” he added.

The agreement comes after the board of Megaworld approved in December the sale of four prime buildings located in economic zones to MREIT, Inc. The purchase price of P9.116 billion will be paid by MREIT upon the execution of a deed of absolute sale on or before Dec. 29, 2021.

MREIT is a company designated by Megaworld to operate as a real estate investment trust (REIT). Megaworld is the listing sponsor and 62% owner of MREIT.

As of the third quarter of 2021, Megaworld posted an attributable income of P8.16 billion, up nearly 10% from P7.42 billion in the same period in 2020.

In contrast, Manila Jockey Club’s attributable net loss widened during the January-September period to P143.12 million from P128.33 million previously.

At the local bourse on Wednesday, Megaworld lost one centavo or 0.31% to close at P3.18 apiece. Shares in Manila Jockey Club fell by eight centavos or 3.36% to finish at P2.30. — M.C. Lucenio

What makes a vegan-friendly wine vegan? And how’s it different from conventional wine?

MAX TUTAK/UNSPLASH

CONSUMER interest in vegan wines is growing, with vegan-friendly wines showing up in many supermarkets and Google searches for “vegan wine” soaring in recent years.

But what makes a vegan-friendly wine vegan? And how’s it different to conventional winemaking techniques?

I’m an oenology and chemistry researcher; I’ve spent years studying wine and winemaking processes. To explain the difference between vegan and non-vegan wines, I first need to walk you through the basics of conventional winemaking.

So, top up your glass and let’s begin.

In conventional winemaking, for both red and white, the grape has a long and tortuous path from the vine to the bottle.

Red wine fermentation is carried out with the skin on the grape, as this is where the molecules that contribute to color are found.

Additions and manipulations can be extensive. Yeast is normally added in combination with diammonium phosphate, a source of nitrogen, to ensure a controlled and manageable fermentation.

Enzymes may be added, either to break down pectin (a fiber found in fruits) or to enhance flavor. Malo-lactic fermentation — where the grape’s malic acid is converted to lactic acid — is common in red wine and also used in some white wine styles.

Gross lees (waste yeast) can be removed by “racking” — which means moving wine from one vessel to another — while the smaller fine lees are removed by filtration.

Wines are routinely tasted prior to bottling. It’s often at this stage that a decision is made that the young wine may need adjustment to the palate structure.

For example, a wine may have an obvious drying effect in the mouth, known as astringency, or exhibit a slightly bitter aftertaste. This can happen when the amount of polyphenolic compounds — micronutrients that naturally occur in plants — are higher than preferred.

In red wine, polyphenolic compounds are commonly called tannins; these are macromolecules made up of carbon, oxygen, and hydrogen atoms. The molecules are much smaller in white wine and, in that context, are usually referred to simply as “phenolic compounds.”

Phenolic compounds interact with proteins. Think of putting milk into a cup of strong black tea to soften the taste and give a more rounded, less bitter taste.

Winemakers will add one of the permitted protein additives after setting up a tasting trial to assess the right amount of protein to be added. This process is known in the business as “fining.”

This is where things get problematic for vegans.

The commonly used proteins are gelatin sourced from cow or pig collagen, isinglass (from fish swim bladder), egg white, or skim milk.

Each protein tends to have specific fining ability, and winemakers make decisions on which to use based on experience or advice.

Australia has comprehensive rules regarding wine labelling, including the need to specify allergens.

This includes milk and eggs, but not the other animal-derived fining proteins. This can cause considerable uncertainty when selecting wines that are vegan-friendly.

Some wine labels now have a statement such as “this wine has been treated with fish product and traces may remain.”

Increasingly in Australia and especially in Europe, wines are now often labeled as “vegan-friendly” or “no animal products were used in the preparation of this wine.”

Proteins derived from plants would appear to be an obvious alternative but, for now, most work on plant proteins is still in the research stage. Only one from potatoes is commercially available.

Gluten from cereals is effective in red wine, but presents obvious problems for those with coeliac disease or gluten allergies.

Grape seed extract is perhaps the most effective plant-based protein that has been trialed but it’s not commercially available. Obtaining regulatory approval across international markets is a significant barrier to the commercialization of new products for use in wine.

Storing a wine on its fine lees (meaning the wine is aged in contact with its fine lees) after removal of the gross lees is one alternative to using animal proteins in winemaking. This can soften a wine and enhance the mouthfeel without the use of additives.

White wines can be stored on fine lees for nine months before bottling. Reds can take up to 18 months to obtain the desired mouthfeel.

Regular tasting during this ageing step is essential to ensure the wine is developing as desired. It is a somewhat expensive process as it ties up storage vessels and winery space.

At a recent tasting of organic and biodynamic wines, some I presented were made by the conventional method, while others met the vegan-friendly criterion. The general comment after the tasting was: I couldn’t tell the difference.

Pairing vegan-friendly wines with food is not restricted to vegan-friendly food. In one classic example, a vegan-friendly sweet wine from the Loire Valley in France was also described as “excellent with foie gras.”

My advice is to explore with an open mind and enjoy the new experience.

 

Geoff Scollary is an Adjunct Professor, Charles Sturt University.

PSE clears initial public offering of Citicore’s REIT

CITICORE Energy REIT Corp. (CREIT) has secured approval from the Philippine Stock Exchange (PSE) for its initial public offering (IPO) of shares worth about P10.1 billion for up to P3.15 apiece.

In a PSE notice posted on Wednesday, the exchange said it had given the green light to the initial listing of CREIT’s 6,545,454,004 common shares with a par value at P0.25 each.

Of these, 1,047,272,000 shares will be issued to the public under a primary offering, while 1,741,660,000 shares are allotted for a secondary offering, plus an overallotment option of up to 418,339,000 common shares.

The shares are priced for as much as P3.15 apiece. The final offer price will be determined based on a book-building process. The offer period will begin at 9 a.m. on Feb. 2, and end at 12 noon on Feb. 8, 2022. The target listing date is on Feb. 17.

CREIT’s IPO is said to be the country’s first energy-focused real estate investment trust (REIT). All of the offered shares will be listed on the main board of the stock exchange under the ticker symbol CREIT.

The proceeds from the primary offering will be used to buy properties in Bulacan and South Cotabato, while those from the secondary offering will be used by Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1, Inc. for their future projects.

Citicore Renewable, a subsidiary of Citicore Power, Inc., is one of the company’s sponsors and is a part of the Citicore group of companies. It is said to be a pioneer of agro-solar social concept.

In a media release on Wednesday, CREIT President and Chief Executive Oliver Y. Tan said the business model “is cycle-resistant as solar power generation is an essential industry, further supported by government programs, and has a clear plan for long-term growth.”

“With the search for attractive returns, alongside a strong and effective environment, society, and governance (ESG) advocacy as criteria for a sound market investment, CREIT comes in as a practical alternative,” he added.

Sought for comment, analysts said the IPO might stimulate investor appetite, but whether the business model can be a template for future energy REITs remains to be seen.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said renewable energy-related businesses would continue to benefit from ESG-related investment themes.

“Since this kind of REIT is relatively new, investors would look at future cash flows and overall valuations,” he told BusinessWorld in a Viber message.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message: “Their focus on renewable energy is a good direction as it is where the demand is in the future.”

He added that demand would still depend on how stable the company’s income is, as it shares its profits through dividends, as well as its growth plans.

Meanwhile, COL Financial Group, Inc. First Vice-President April L. Tan said that with the favorable outlook on the power industry and the company’s structure, CREIT is a good REIT that could give stable cash dividends to shareholders.

However, Ms. Tan said the attractiveness of the offer would still depend heavily on its yield.

“At P3.15 per share, potential yield is at 5.66%. This might not be compelling enough since other REITs debuted with similar yields, but with more attractive near-term growth prospects,” she said.

Ms. Tan also noted that the potential for growth through acquisition in the near term is limited because the parent firm still has to build more plants that the company can acquire in the future.

“The fund manager’s role is to look for assets that fit the REIT company’s investment criteria and the easiest way to grow a REIT’s portfolio is by buying the assets of its REIT sponsor. However, if the sponsor doesn’t have assets that meet the REIT company’s investment criteria, then it might be difficult for the REIT to grow through acquisition,” she explained.

In its press statement, CREIT said the Citicore group has a pipeline of 1,500 megawatts of direct current (MWdc) solar plant capacity in the next five years with 120.5 MWdc underway. — Marielle C. Lucenio

Clark Marriott opens traditional Chinese restaurant

Wu Xing Peking Duck

THE CHINESE concept of Wu Xing, which puts the traditional five elements of Chinese philosophy (water, wood, fire, earth, metal) in order, had once been used to explain how the universe moves. Perhaps the concept is alive and well in Clark Marriott’s new restaurant, named Wu Xing (of course).

It’s not a stretch: the restaurant’s chef, Raymond Yeung, has 30 years of experience in Chinese cuisine. Mr. Yeung took a five-year course at the Chinese Cuisine Training Institute in Hong Kong, and was in the first batch of graduates of this course at the school. Mr. Yeung has also traveled across China to draw from the best regional styles. “We tried the different and popular dishes of Beijing, Shanghai, Sichuan, and Hong Kong, and got the best of them in developing the menu for Wu Xing,” he said in a release.

Beijing is well-represented in Wu Xing’s flagship product, its Peking Duck. The duck is marinated and roasted in a traditional Beijing oven using star apple firewood to help bring out the flavors and aroma of the duck. This makes the meat extra tender and the skin crispy. It’s served with cucumber, onion leeks, pickled ginger, special hoisin sauce, and rolled in a hot Chinese pancake.

Adding to his repertoire are Crispy soft tofu with hoisin sauce, Premium jelly fish with Treasure oil,  Ox tongue and tripe with Sichuan oil, Sliced pork belly with chili oil and garlic, Century egg with marinated pickled ginger, cucumber and black fungus in chili oil, Wok-fried snake beans with salted egg yolk, Clay pot braised spicy duck with beer sauce, Wok-fried sliced duck with black fungus, ginger and leek, Wok-fried duck intestine with black bean sauce, and Lotus leaf wrapped glutinous rice with duck meat.

Meanwhile, Clark Marriott General Manager Goeran Soelter said in a statement, “Wu Xing is poised to be the newest dining destination not only for northern Luzon diners but also for Metro Manila. We are bringing authentic and traditional Peking Duck to northern Luzon. We are already a destination for people to staycation coming out of Manila for the weekend. That was our bread and butter for the last 12 months and it really grew in comparison to the period pre-pandemic. Now people have more reasons to make the trip to Clark Marriott.”

Wu Xing is now open at Clark Marriot, Clark Freeport Zone in Pampanga. For inquiries and table reservations contact +6345-598-5000 or visit its official Facebook page Wu Xing by Clark Marriott. — JLG

SEAG athletes face limited budget

PSC COMMISSIONER RAMON FERNANDEZ — PSC FB PAGE

Fernandez to meet Tolentino on Hanoi plans

PHILIPPINE Southeast Asian Games (SEAG) chef de mission Ramon Fernandez said he would sit down with Philippine Olympic Committee President Abraham Tolentino on how they will make do with the limited budget they have for the Hanoi edition set on May 12-25.

Mr. Fernandez, a Philippine Sports Commission board member, said the SEA Games-bound national team composed of 627 athletes plus coaches, technical officials and delegation members will have only a budget of P121 million.

It was P29 million short from the projected amount of P150 million that should cover everything from training to actual participation.

“We will talk at 2 p.m. tomorrow (today),” said Mr. Fernandez referring to Mr. Tolentino.

Mr. Fernandez suggested the “have money, will travel” policy to some sports wherein a national sports association (NSA) would pay for its own and if it snares at least a medal, it would be reimbursed by the sports-funding agency.

“It’s possible. But again, it will really depend on the government allocation especially now that revenues are affected with COVID-19 (coronavirus disease 2019) cases rising again,” said Mr. Fernandez.

Meanwhile, Mr. Fernandez said the resumption of training for national athletes bound for Hanoi will be held soon as the venues being refurbished — PhilSports Complex in Pasig and Rizal Memorial Sports Complex in Manila — are close to completion.

“The protocols are also in place. We’re just waiting for food caterers as well as the COVID-19 situation to improve. If they would come in, it must be one at a time to avoid more spread,” said Mr. Fernandez. — Joey Villar

Ookla: Smart internet speed score highest in Q4 2021

SMART Communications, Inc., the wireless arm of PLDT, Inc., achieved the highest mobile internet speed score among major providers in the Philippines in the last quarter of 2021, Ookla’s Q4 (fourth quarter) Internet Performance Report showed.

Smart’s speed score for the fourth quarter rose to 68.78 from 59.71 in the third quarter, while Globe Telecom, Inc.’s speed score increased to 32.67 from 28.38 previously.

Meanwhile, new telco player DITO Telecommunity Corp. saw its speed score for the fourth quarter fall to 24.47 from 25.34 in the previous quarter.

Experts have cited slow and unreliable internet connections in the Philippines, whose people are said to be one of the most active social media users in the world.

Philippine mobile internet speeds further improved in December, with its global ranking climbing one place to 89th out of 138 countries.

Median download speed for mobile internet rose to 19.20 megabits per second (Mbps) in December from 18.68 Mbps in November. Mobile upload speed decreased slightly to 5.60 Mbps from 5.64 Mbps previously.

Mobile internet latency, which measures how quickly a device gets a response after its user sends out a request, remained at 24 milliseconds.

In terms of the fifth-generation (5G) connection, Ookla, the network testing company behind Speedtest, said: “Looking only at tests taken on a 5G connection, Smart had the fastest median download (speed) in the Philippines during Q4 2021 at 220.89 Mbps.” Globe came in second at 117.93 Mbps.

Speedtest data also showed that Caloocan City had the fastest median mobile download speed among the country’s most populous cities at 25.24 Mbps, followed by Manila (24.34 Mbps), Quezon City (23.21 Mbps), Davao City (16.01 Mbps), and Cebu City (15.07 Mbps).

The Philippine mobile service market is expected to increase at a compound annual growth rate of 5.6% to $5.4 billion by 2026, according to United Kingdom-based data analytics and consulting firm GlobalData.

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. — Arjay L. Balinbin

Microsoft to gobble up Activision for $69 billion in bet on the metaverse

MICROSOFT CORP. is buying Call of Duty maker Activision Blizzard for $68.7 billion in the biggest gaming industry deal in history as global technology giants stake their claims to a virtual future.

The deal announced by Microsoft on Tuesday, its biggest-ever and set to be the largest all-cash acquisition on record, will bolster its firepower in the booming video gaming market where it takes on leaders Tencent and Sony.

It also represents the American multinational’s bet on the “metaverse,” virtual online worlds where people can work, play and socialize, as many of its biggest competitors are already doing.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft Chief Executive Satya Nadella said.

Microsoft, one of the biggest companies in the world largely thanks to corporate software such as its Azure cloud computing platform and Outlook franchise, is offering $95 per share — a 45% premium to Activision’s Friday close.

Activision’s shares were last up 26% at $82.10, still a steep discount to the offer price, reflecting concerns the deal could get stuck in regulators’ crosshairs.

Microsoft has so far avoided the type of scrutiny faced by Google and Facebook but this deal, which would make it the world’s third largest gaming company, will put the Xbox maker on lawmakers’ radars, said Andre Barlow of the law firm Doyle, Barlow & Mazard PLLC.

“Microsoft is already big in gaming,” he said.

However, a source familiar with the matter said Microsoft would pay a $3-billion break fee if the deal falls through, suggesting it is confident of winning antitrust approval.

The tech major’s shares were last down 1.9%.

The deal comes at a time of weakness for Activision, maker of games such as Overwatch and Candy Crush. Before the deal was announced, its shares had slumped more than 37% since reaching a record high last year, hit by allegations of sexual harassment of employees and misconduct by several top managers.

The company is still addressing those allegations and said on Monday it had fired or pushed out more than three dozen employees and disciplined another 40 since July.

CEO Bobby Kotick, who said Microsoft approached him about a possible buyout, would continue as CEO of Activision following the deal, although he is expected to leave after it closes, a source familiar with the plans said.

In a conference call with analysts, Microsoft boss Mr. Nadella did not directly refer to the scandal but talked about the importance of culture in the company.

“It’s critical for Activision Blizzard to drive forward on its renewed cultural commitments,” he said, adding “the success of this acquisition will depend on it.”

‘METAVERSE ARMS RACE’
Data analytics firm Newzoo estimates the global gaming market generated $180.3 billion of revenues in 2021, and expects that to grow to $218.8 billion by 2024.

Microsoft already has a significant beachhead in the sector as one of the big three console makers. It has been making investments including buying Minecraft maker Mojang Studios and Zenimax in multibillion-dollar deals in recent years.

It has also launched a popular cloud gaming service, which has more than 25 million subscribers.

According to Newzoo, Microsoft’s gaming market share was 6.5% in 2020 and adding Activision would have taken it to 10.7%.

Executives talked up Activision’s 400 million monthly active users as one major attraction to the deal and how vital these communities could play in Microsoft’s various metaverse plays.

Activision’s library of games could give Microsoft’s Xbox gaming platform an edge over Sony’s Playstation, which has for years enjoyed a more steady stream of exclusive games.

“The likes of Netflix have already said they’d like to foray into gaming themselves, but Microsoft has come out swinging with today’s rather generous offer,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.

Microsoft’s offer equates to 18 times Activision’s 2021 earnings before interest, tax, depreciation and amortization (EBITDA). That compares with the 16 times EBITDA valuation of Grand Theft Auto maker Take-Two Interactive’s cash-and-shares deal for Zynga last week.

According to Refinitiv data, the Microsoft-Activision deal would be the largest all-cash acquisition on record, trumping Bayer’s $63.9-billion offer for Monsanto in 2016 and the $60.4 billion that InBev bid for Anheuser-Busch in 2008.

Tech companies from Microsoft to Nvidia have placed big bets on the so-called metaverse, with the buzz around it intensifying late last year after Facebook renamed itself as Meta Platforms to reflect its focus on its virtual reality business.

“This is a significant deal for the consumer side of the business and more importantly, Microsoft acquiring Activision really starts the metaverse arms race,” said David Wagner, equity analyst and portfolio manager at Aptus Capital Advisors.

“We believe the deal will get done,” he said, but cautioned: “This will get a lot of looks from a regulatory standpoint.” — Reuters

Yields on BSP’s term deposits slip as gov’t keeps restrictions

BW FILE PHOTO
YIELDS on the Bangko Sentral ng Pilipinas’ term deposits declined on Wednesday as Metro Manila and other areas remain under strict restrictions. — BW FILE PHOTO

YIELDS on the term deposits offered by the Bangko Sentral ng Pilipinas (BSP) continued to slip on Wednesday after the government kept Metro Manila and other parts of the country under tighter restrictions amid the infection surge.

Total bids reached P703.29 billion on Wednesday, surpassing the P510-billion offer but lower than the P735.629 billion in tenders logged in the previous auction.

Demand for the seven-day papers amounted to P253.606 billion, higher than the P220-billion auctioned off by the central bank but failing to beat the P299.46 billion in tenders last week.

Banks asked for yields ranging from 1.6875% to 1.7375%, a tad slimmer than the 1.6875% to 1.74% band seen a week ago. This caused the average rate of the one-week deposits to slip by 1.04 basis points (bps) to 1.7128% from 1.7232% previously.

Meanwhile, the 14-day term deposits fetched bids amounting to P449.684 billion, higher than the P290-billion offering as well as the P435.809 billion seen a week earlier.

Accepted rates for the tenor were from 1.695% to 1.7375%, a narrower band compared with the 1.69% to 1.7693% margin seen on Jan. 12. With this, the average rate of the two-week papers declined by 2.28 bps to 1.7259% from 1.7487% in the previous week’s auction.

The BSP has not offered 28-day term deposits for more than a year to give way to its weekly auctions of securities with the same tenor.

The term deposit facility and the short-term securities are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

Yields were down after the government kept areas where coronavirus disease 2019 (COVID-19) infections continue to rise under Alert Level 3, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Palace on Friday said Alert Level 3 will be imposed in Metro Manila and other provinces that have seen higher COVID-19 infections until Jan. 31.

Under Alert Level 3, businesses are only allowed to operate at 30% capacity in indoor settings and 50% in outdoor venues.

“[This Alert Level 3] could slow down economic recovery prospects and could also potentially ease demand/inflation,” Mr. Ricafort said.

Active COVID-19 infections increased by 22,958 to 270,728 on Wednesday, based on data from the Department of Health. The positivity rate stood at 43.5%. — L.W.T. Noble

No bidders for Rome villa with world’s only Caravaggio mural

Jupiter, Neptune and Pluto (c. 1597) by Caravaggio
— EN.WIKIPEDIA.ORG/ CARAVAGGIO

ROME — An online auction for a villa in central Rome, which has the only known ceiling mural by Italian baroque artist Caravaggio, failed to draw any bidders on Tuesday, meaning it will now be offered at a discount.

The property was put on the market following a drawn-out inheritance dispute and was initially valued by court-appointed experts at €471 million ($533 million), making it potentially one of the most expensive homes in the world.

The minimum bidding price was set at €353.25 million, but there were no takers and the sale was called void by a judicial auction website www.fallcoaste.it.

The villa will be put up for sale again on April 7, with the price due to be cut by some 20%, Italian media reported.

Under Italian law, properties that fail to find buyers at court-ordered auctions can be placed back on the block with a discount of up to 25%. There was no immediate comment from the Rome tribunal auction authority.

Caravaggio was commissioned to paint the ceiling of a small room on the first floor in 1597. The 2.75-meter-wide mural was painted in oil directly onto the plaster and depicts an allegorical scene with the gods Jupiter, Neptune, and Pluto representing the transformation of lead into gold.

Caravaggio painted his own face and body on each of the three figurines. The mural alone is valued at €310 million.

The walled villa is what is left of a country retreat established in the 16th century by Cardinal Francesco Maria Del Monte and sold to its current owners, the noble Ludovisi family, in the early 1600s.

Following the death of Prince Nicolo Boncompagni Ludovisi in 2018, the property became the target of a legal dispute pitting Ludovisi’s children from his first marriage against his third wife, Princess Rita Boncompagni Ludovisi, who was born and raised in Texas but has lived in the villa for 18 years. — Reuters

Pressuring Brady will be key to success — Rams’ McVay

TOM BRADY — REUTERS

LOS ANGELES — Making life difficult for Tom Brady will be key if the Los Angeles Rams are to have success against the veteran quarterback in their divisional playoff matchup against Tampa Bay on Sunday, head coach Sean McVay said.

The Los Angeles defense dominated the Arizona Cardinals en route to a 34-11 blowout win at home on Monday, but will have a bigger mountain to climb on the road against the reigning Super Bowl champions and seven-time championship winner Brady.

“He’s got so much experience. He’s so smart,” McVay said of the 44-year-old quarterback during a media conference on Tuesday.

“He recognizes exactly what’s going on. And so, I think the best way is try to influence and affect him is to move him off his spot, be able to win with your rushes.

“Easier said than done. It’s why he’s the most successful quarterback of all time.”

The Rams defense, which is led by three-time Defensive Player of the Year Aaron Donald, have “respect, but not fear” of Brady, he added.

“We have tremendous respect for him, but we’re going to have the expectation that we’re preparing to try to go win this game.

“We know what a great challenge it’s going to be. We’ve got to have a great week of work, and then go play to the best of our ability and let the chips fall where they may.”

In addition to Donald, Brady will be in the crosshairs of outside linebacker Von Miller, who joined the team in November and recorded six tackles and an early sack on Monday to set the tone.

“Von has been outstanding,” McVay said.

“I think he’s really clicked it up a notch this last month. I thought he played great from the jump yesterday and really excited about him building on that performance.” — Reuters

EasyCall acquires 100% of IT firm Transnational E-Business Solutions

LISTED EasyCall Communications Philippines, Inc. (ECP) announced on Wednesday that it had completed the requirements for the acquisition of information technology (IT) company Transnational E-Business Solutions, Inc. (TESI).

“ECP acquired 100% of TESI through the purchase of 1,000,000 common shares based on the book value of TESI as of 2021 June 30 interim audited financial statement in the amount of P162,925,694.00 or P162.925694 per share,” the listed company said in a disclosure to the stock exchange.

“The sale concluded in January 2022, upon signing of the transaction documents on 2022 Jan. 1 and full payment of the purchase price last 2022 Jan. 14,” it added.

The acquisition is seen to enhance ECP’s “thrust as a technology company as it complements ECP’s current services on connectivity, data and technology services,” the listed company noted.

It expects the acquisition to add to the overall business scale and capabilities of ECP group.

According to ECP, TESI was registered with the Philippine Securities and Exchange Commission in March 1997 primarily to engage in the business of IT services, including software development, internet and e-commerce services, back-office processing and system integration.

TESI initially served internal clients but has since expanded to external clients in various industries, it noted.

The IT company was also registered with the Philippine Economic Zone Authority as an ecozone IT enterprise in June 2008.

It “services foreign clients and PEZA entities especially for its software development and information technology outsourcing lines of business,” ECP said.

“TESI has three major lines of businesses under software development using low-code applications to fast-track the digital adoption of companies, software as a service and information technology outsourcing.” — Arjay L. Balinbin

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