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PH Resorts moves to raise capital for casino venture

PH Resorts Group Holdings, Inc. is set to sell shares through a private placement to raise funds for its resort and casino project, the former water company acquired by businessman Dennis A. Uy disclosed on Thursday. 

The placing and subscription transaction will involve the offer of 352,441,000 common shares with a par value of P1 apiece via a private placement. 

The offer shares are owned by Udenna Corp. and will be sold at P1.70 each to qualified buyers. They will be procured by placement agents Unicapital, Inc., Abacus Capital & Investment Corp., and China Back Capital Corp. 

Udenna will then use the proceeds to subscribe to the same number of PH Resorts primary shares for the same price. These will then be the subscription shares. 

“The company shall apply for the listing of the subscription shares with the PSE (Philippine Stock Exchange) as soon as practicable,” PH Resorts said, adding the company does not need to secure other regulatory approvals for the transaction. 

Subscription shares will be issued on or about the closing date when the settlement of the offer shares is expected to occur. 

“The placing and subscription transaction is estimated to close after the approval of the PSE of the special block sale and the cross of the offer shares using the facilities of the exchange, subject to the fulfillment of all conditions precedent,” the company said. 

PH Resorts is expected to raise up to P599.15 million in total gross proceeds from the issuance of the subscription shares to Udenna. 

“The placing and subscription transaction allows the company to raise capital in a most expeditious and efficient manner to partially fund the ongoing construction and development of Emerald Bay Resort and Casino project,” PH Resorts said.  

If PH Resorts does not use the proceeds for the resort and casino project, these will be used for general corporate purposes, the company. 

Following the transaction, Udenna will have an 82.40% stake from 86.59% in the company, with 6,000,237,228 shares. Meanwhile, PH Resorts will have a total of 7,282,017,027 common shares from 6,929,576,027 shares. 

The transaction will increase the company’s public float to 17.5% from 13.3%, while its foreign ownership level will bump up to 4.56% from 3.75%. 

Shares of PH Resorts closed unchanged at the stock market at P1.67 apiece. — Keren Concepcion G. Valmonte 

Aboitiz-led Lima Land to expand industrial estate in Batangas

LIMA Technology Center in Lipa, Malvar, Batangas -- aboitizland.com/lima-technology-center/

LIMA Land, Inc. plans to expand its Batangas estate to over 1,000 hectares in the next decade in a move that could open more opportunities for the company group and the province. 

“In the next 10 years, Lima plans to develop and expand the estate to more than a thousand hectares,” Lima Land Assistant Vice-President for Operations Clifford Academia said in a virtual event on Wednesday. 

Lima Land is the developer and operator of LIMA Technology Center, an economic zone registered with the Philippine Economic Zone Authority. The economic zone in Malvar, Batangas is an industrial park that caters to export-oriented locators in manufacturing and warehousing operations. 

“The transformation of our central business district, our commercial and industrial zones will open up a new wave of opportunities,” Mr. Academia said. 

The company is currently developing over 100 hectares of its 794-hectare LIMA estate for new locators.  

Set to be completed by the third quarter of 2022, the expansion could create 20,000 new jobs in Batangas and nearby areas. 

“In LIMA, we currently have a very diverse set of locators, and also a diverse set of complementing businesses,” Mr. Academia said. 

Lima Land is also redeveloping its 30-hectare business district to house new commercial lots, outsourcing companies, dormitories, and office buildings. Last month, Lima Land announced that it was set to build a seven-tower office complex. 

Lima Land is managed by Aboitiz InfraCapital, Inc. under its Aboitiz Integrated Economic Centers business unit. The Aboitiz group developed the area into a mixed-use estate after acquiring it in 2014. 

Aboitiz Equity Ventures, Inc. (AEV), the listed holding company for the group’s diversified businesses, posted 159% year-on-year increase in its consolidated net income for the second quarter to P4.9 billion. 

Shares in AEV increased by 3.9% or P1.55 to close at P41.30 apiece on Thursday. — Jenina P. Ibañez 

Revenue foregone due to lower tariffs at P2.53B

Customers buy pork at Commonwealth market.

FOREGONE REVENUE following the lowering of tariffs on pork and rice imports this year has amounted to P2.53 billion so far, the Department of Finance said.

The tariff lowering was effected via executive orders (EOs) issued earlier this year as a temporary anti-inflation measure.

Finance Undersecretary Antonette C. Tionko told reporters the government is expecting to forego P5.9 billion in revenue mostly from the pork EO with smaller losses from the rice EO by the time they expire after one year. By the end of 2021 the total is estimated at P5.4 billion.

In May, President Rodrigo R. Duterte signed EO 134 lowering the tariff rates for pork to 10% for three months for shipments within the current minimum access volume (MAV). The rate was set at 20% for shipments falling outside the quota for the first three months. Over the remaining nine months, tariffs were set at 15% for in-quota and 25% for out-of-quota imports.

The government made an initial move to reduce the rates on imported pork in April through EO 128 but this has since been amended by EO 134 after hog growers complained that they risk being swamped by foreign competition.

EO 135, issued in May, temporarily reduced the tariff rates on rice imported from “most favored nation” trading partners to a uniform rate of 35% for both those inside and outside the MAV quota.

The tariffs were lowered in consideration of “the health of the entire economy and the welfare of the people. It’s worth it to lose some revenue so that people’s food costs are not increased. That’s really the justification of that,” Finance Secretary Carlos G. Dominguez III also told reporters.

Inflation eased to a seven-month low of 4% in July, though price growth remained elevated, above the high end of central bank’s 2-4% target range for the year. — Beatrice M. Laforga

MPT South cash payments among users of its toll roads at up to 30%

BW FILE PHOTO

MPT SOUTH Corp. said most toll road users are now using cashless payment systems while up to 30% still use cash.

“The increased adoption of cashless payments and solutions over the past… months has resulted in the majority of our customers now having accounts to pay their tolls electronically,” Roberto V. Bontia said in an e-mailed reply to questions. Mr. Bontia is the president and general manager of MPT South Corp. and its two main expressway companies in the south of the capital — Cavitex Infrastructure Corp. and MPCALA Holdings Corp.

“This adoption of electronic payments will continue and hopefully accelerate the full conversion of the remaining 25%-30% of our customers who are still paying in cash,” he added.

MPT South is a unit of Metro Pacific Tollways Corp. (MPTC), the toll road unit of Metro Pacific Investments Corp. (MPIC).

“Our MPTC Group, despite the difficulties and the extra layers of complexity brought about by the pandemic, has made a conscious decision to continue the toll projects we started, and the ones cleared in the pipeline for implementation,” Mr. Bontia also noted.

He said MPT South and MPCALA are pursuing the completion of the Cavite-Laguna Expressway (CALAX) and C5 South Link and their interconnection to Manila-Cavite Expressway (CAVITEX).

“We expect to fully complete the interconnection of these three toll roads as we get past the pandemic,” Mr. Bontia said.

“The continuation-completion of our construction projects together with our commitment to operate continuously our existing facilities build confidence among our stakeholders and will be key to our recovery,” he added.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group.

Manila Water says unit signs P465-M loan to fund projects

MANILA Water Co., Inc. said on Thursday that a unit of its South Luzon water consortium had signed a P465-million term loan facility to fund its projects. 

Manila Water Philippine Ventures, Inc.-South Luzon Water Corp. (MWPV-SLWC) forged the loan with the Bank of the Philippine Islands, the east zone water concessionaire said in a stock exchange disclosure on Thursday. 

SLWC is a wholly owned subsidiary of Filipinas Water Holdings Corp., a consortium between Manila Water and MWPV. The loan aims to partially fund SLWC’s capital expenditure projects. 

“SLWC is primarily engaged in the development, improvement, upgrade, and expansion of water supply and sanitation facilities within the service area of the Tanauan Water District in the City of Tanauan in the Province of Batangas,” Manila Water said in the disclosure. 

According to its website, MWPV is focused on geographic expansion, and is mandated to look for new acquisitions and partnerships across the country.  

Some of the firms under MWPV are Boracay Island Water Co., Clark Water Corp., and Manila Water Consortium, Inc.  

In the first half, Manila Water posted a 10% increase in its attributable net income to P2.73 billion as it was carried by its international affiliates, while its consolidated revenues dropped 6% to P10.14 billion due to lower billed volume. 

Manila Water provides water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, portions of Quezon City and Manila, and Rizal province.  

On Thursday, shares of Manila Water at the stock exchange rose 0.22% or four centavos to finish at P18 apiece. — Revin Mikhael D. Ochave 

IP E-Game Ventures to sell property stake in New Wave Strategic

IP E-Game Ventures, Inc. will be selling 100% of its real estate shares in New Wave Strategic Holdings Ltd., the listed firm that started out in online gaming said on Thursday. 

The move comes after the company decided to shift its primary focus on financial technology (fintech) and related sectors. It was incorporated in 2005 to engage in the interactive gaming and content distribution business here and abroad, among others.  

IP E-Game said in a disclosure to the stock exchange that the sale by the corporation of its shares, which comprise the real estate portion of the subsidiary, “is part of this realignment.” 

The write-down value of the investment in New Wave Strategic was lowered to P500 million from P2.5 billion, based on the unit’s landholding valuation. 

“The pandemic and spread of COVID-19 (coronavirus disease 2019) have heavily affected the hotel and integrated resort industry as there is basically no global tourism, which is the lifeblood of integrated resorts,” IP E-Game said. 

“Given the pandemic, the underlying investment consortium in Vietnam has decided not to pursue the integrated resort project in the landholding, and therefore, the corporation is reflecting a write-down for adjustment in valuation of its landholding,” it added. 

To further fund its transition to fintech, IP E-Game’s board of directors also approved a fund-raising program, which will be done via a P2-billion private placement. This will take place once its amended articles of incorporation have been approved. 

It will be appointing an advisor to assist the management in the program, IP E-Game said. The plans are still subjected to further definitive agreements. 

Shares of IP E-Game at the stock exchange were last traded on May 2 for P0.0094 apiece. — Keren Concepcion G. Valmonte 

Philguarantee-backed loans for agriculture just under P3.5 billion

THE PHILIPPINE Guarantee Corp. (Philguarantee) approved guarantee cover on loans worth P3.499 billion to the agriculture sector in the first half, helping fund 35,360 farmers and fisherfolk borrowing from banks, the Department of Finance (DoF) said.

Citing a report from Philguarantee, the DoF said in a statement Thursday that the guarantees were given to 47 lending institutions, and account for 95% of the institution’s P3.675-billion target for its Agricultural Guarantee Fund Pool this year.

The facility aims to encourage bank lending to small farmers and fisherfolk to boost their production.

Farmers took out covered loans worth of P3.35 billion while the livestock sector accounted for P112.63.

Loans guaranteed in the fisheries sector amounted to P27.86 million, while those taken on by poultry farmers totaled P12.03 million.

“Philguarantee (is fulfilling) its mandate… to provide assistance to affected agri-based workers by way of its guarantee program,” Philguarantee President and CEO Alberto E. Pascual said in a statement.

Last year, Philguarantee provided cover on P4.25 billion worth of loans to 48,038 borrowers in the agriculture sector, after approving P5.14 billion in guarantees given to 41 lenders.

Philguarantee exceeded its P3.5-billion target last year by 21.4%.

It also granted three months of relief last year by reducing the guarantee fee to 0.5% from 1% previously, and raised the amount it can guarantee to 90% of loan value for rice farmers, up from 85%.

For lending to small businesses, Philguarantee approved P37.7 billion worth of guarantee facilities to 34 banks starting in December.

Some P2.1 billion worth of loans were guaranteed for 10,000 micro-, small-, and medium-sized enterprises (MSMEs) borrowers.

The credit guarantee program for MSMEs is intended to assist hard-hit businesses seeking to survive the pandemic by encouraging banks to lend more to the sector. — Beatrice M. Laforga

A discussion on Lav Diaz

While finishing their doctorate studies in Melbourne in 2017, film scholars and now professors Parichay Patra and Michael Kho Lim had the idea of publishing a book on Filipino filmmaker Lav Diaz and his works while studying film and watching Mr. Diaz’s films at film festivals.

The result was Sine ni Lav Diaz: A Long Take on the Filipino Auteur which details the life and works of the celebrated Filipino filmmaker.

Mr. Diaz, whose signature style involves very long, often static, shots, is perhaps best known to the public for the length of his movies which include Norte, Hangganan ng Kasaysayan (2013, Norte, The End of History), Ang Babaeng Humayo (2016, The Woman Who Left), Ang Panahon ng Halimaw (2018, Season of the Devil), the eight-hour long Hele sa Hiwagang Hapis  (2016, A Lullaby to the Sorrowful Mystery), and the nine-hour long Ebolusyon ng Isang Pamilyang Pilipino (2004).

The book cover features a black and white photo of the director on the set of Ang Hupa (The Halt), taken by Cielo Bagabaldo.

With the publication of the book, the authors intend to expand the discourse of Mr. Diaz’s works in cinema studies.

“We want to situate Lav Diaz in different context and domains. That is why we have engaged a number of contributors from around the Philippines and from other parts of the world,” co-editor Mr. Lim said during an online press launch on Aug. 17 held via Zoom and livestreamed through Facebook.

The book takes a critical look at Diaz’s career and body of work from various perspectives, with contributions from cinema studies researchers, film critics, festival programmers, and artists from the Philippines and around the world.

“Our intention was to make the book more interesting, more comprehensive. So that many approaches many viewpoints can be introduced,” co-editor Mr. Patra said.

Mr. Patra added that the book includes essays on Lav Diaz’s connection with Russian novelist Fyodor Dostoevsky, how Mr. Diaz wanted to present in his cinematic style something different from “the commercial clutches of a specific format”; and his contributions to Philippine cinema.

An excerpt from the book’s Introduction reads: “The book’s title uses Diaz’s directorial credit — his signature or branding to a certain extent: Sine ni Lav Diaz, which can be translated as ‘a film by Lav Diaz’ or ‘the cinema of Lav Diaz.’ We take on the latter notion to refer to his body of works as a form of cinema in itself.

“Correspondingly, we use ‘long take’ to signify Diaz’s cinematic style and to represent the book’s extensive look or comprehensive study on Diaz. It presents an expansive or a wide range of views through the contributors’ (long) take on Diaz and his works.”

In a video shown during the launch, Mr. Diaz expressed his gratitude to both editors and contributors.

“Thank you to the various contributors for your critical thoughts that became part of this book. Because of you, more works other than mine are given the space for a wider discourse and conversation for the country and for the world,” Mr. Diaz said.

Sine ni Lav Diaz: A Long Take on the Filipino Auteur is published by the independent academic publisher Intellect Books (United Kingdom) and distributed locally through the De La Salle University Publishing House.

The book is available for pre-order until Sept. 15 for P1,350. Orders after Sept. 15 will be sold at the regular price of P1,500. For more information, visit https://www.intellectbooks.com/sine-ni-lav-diaz. For orders, https://artbooks.ph/products/sine-ni-lav-diaz-a-long-take-on-the-filipino-auteur-pre-order or at https://bit.ly/SineniLavDiazartbooksph  For orders outside of the Philippines,  visit https://www.intellectbooks.com/sine-ni-lav-diaz. — Michelle Anne P. Soliman

Toyota Philippines shrugs off impact of global output cut

A GLOBAL Toyota production cut will not impact Philippine production, Toyota Motor Philippines Corp. (TMP) said. 

Toyota Motor Corp. plans to cut its global production for September by 40%, Nikkei Asia reported. The car maker in July planned to build under 900,000 vehicles for next month, but the figure has since been cut to 500,000 units as the company rolls back production in Japan, North America, China, and Europe. 

TMP First Vice-President Rommel R. Gutierrez said in a mobile message on Thursday that the reduction will not have an impact on the local business. 

The global company has been impacted by the global semiconductor shortage, while a Southeast Asian outbreak of the Delta coronavirus disease 2019 (COVID-19) variant slowed auto parts procurement, Nikkei Asia reported. 

The global shortage in semiconductors, the chips used in electronic devices and cars, started last year as lockdowns caused factory shutdowns, but the shortfall has since been exacerbated by increasing consumer demand. 

Local car sales in July went up by 4.7% to 21,499 units year on year, but the car manufacturers industry group is anticipating a slowdown in sales this month due to the tighter lockdown restrictions.  

TMP continued to have the highest sales with 10,763 units sold or 50% market share. — Jenina P. Ibañez

BoI seeking to attract aerospace investment after parts maker certified

THE BOARD of Investments (BoI) is seeking to attract foreign investment in aerospace after a Philippine aircraft parts manufacturer received international certification.

Automotive and aircraft parts maker Daiwa Seiko Philippines recently earned an aerospace standard (AS9100D) certification, an industry-specific quality management standard.

“Developing a pool of AS9100-certified parts suppliers is also key to attracting foreign aerospace companies to set up manufacturing operations in the Philippines,” BoI Executive Director Ma. Corazon H. Dichosa said in a statement Thursday.

The government’s “Make It Happen in the Philippines” international investment marketing campaign targets the automotive, aerospace, electronics, copper and nickel, and business process outsourcing sectors.

The BoI has been running an aerospace quality management training program for the industry since 2017. Daiwa Seiko is one of 18 companies that joined the program.

“The training was intended to provide our companies the skills and guidance leading to AS9100 certification,” Ms. Dichosa said.

“The actual certification, however, will then be up to the company itself. With Daiwa Seiko’s recent certification, we are expecting that the other companies that completed the course will soon be certified as well.”

The aerospace industry roadmap aims to generate $2.57 billion worth of aerospace parts and components exports and employ around 15,000 people by 2022.

“The pandemic has posed challenges across industries including the aerospace industry. As the global economy recovers, we can see the Philippines becoming a recognized manufacturer in Asia considering the Philippines’ growing expertise in the manufacture of aerospace and aviation products,” Trade Secretary and BoI Chairman Ramon M. Lopez said. — Jenina P. Ibañez

A Brown reports lower earnings as property sales dip

A BROWN Co., Inc. said its second-quarter attributable net income to equity holders slid by 42% to P53.89 million on a year-on-year basis after registering lower property sales. 

In its quarterly report filed with the local bourse on Thursday, the listed real estate firm said its total revenues from April to June inched down 1% to P83.64 million versus P84.85 million in the same period last year. 

Property sales made up majority or around 77% of the firm’s total revenues. A Brown said that real estate revenues reached P64.32 million in the second quarter, lower by around 6% compared with P68.22 million previously. 

Meanwhile, A Brown also that its noted general, administrative and selling expenses rose by 66% to P66.67 million in three months ending June. 

In a separate press release, the company reported a net income of P225.9 million in the first half, up by 5.7% year on year, amid higher equity contributions from its utilities segment. 

It added that its investments in the utility sector, or its equity in net earnings of associates, contributed P167.8 million to its bottom line in the six months ending June, up by 16% from P145.4 million in the same period last year. 

A Brown also has interests in power generation and palm product manufacturing through its subsidiaries. 

“Operating associates Palm Concepcion Power Corp. and Peakpower Energy, Inc. delivered better results for the first half of the year compared to the same period last year,” the company said. 

In April, A Brown’s wholly owned unit Vires Energy Corp. received from the Energy department a notice to proceed for its proposed natural gas-fired power plant, and liquefied natural gas storage and regasification project in Batangas. 

The company said that a consortium, which it identified as Seanergy Singapore and London Marine Consultants, had started the pre-front end engineering design of the project’s floating power plant component. 

Meanwhile, another A Brown subsidiary Irradiation Solutions, Inc. is in the process of developing what it called the country’s first commercial electron beam facility in Tanay, Rizal. 

“Permitting and detailed engineering design for the Tanay facility is expected to be completed by December 2021. Construction is targeted to commence by 2022 and commercial operations to start by the second half of 2023,” it said. 

On Thursday, A Brown shares inched down by 1.15% or one centavo to finish at 86 centavos apiece in the local bourse. — Angelica Y. Yang 

‘No corruption’ involved in CoA audit findings, DA’s Dar says

THE DEPARTMENT of Agriculture (DA) said the audit findings on its 2020 accounts, which turned up P9.8 billion in unspent funds that have since been returned to the Treasury, did not involve corruption.

“We assure our clientele — farmers, fishers, livestock raisers, and agri-fishery industry stakeholders — and partners from the private sector, local government units, and international funding institutions, and the general public that we… do not and will not tolerate corruption,” Agriculture Secretary William D. Dar said in a statement Thursday.

“We try to comply with all government accounting and auditing procedures and requirements,” he added.

The Commission on Audit (CoA), in its 2020 report, said the DA’s unspent budget was due to failed bids, incomplete procurement documentation, and problems in advancing projects during the coronavirus disease 2019 (COVID-19) pandemic.

The DA has 60 days from receipt of the report to respond to the audit findings.

“As per Agriculture Undersecretary for Administration and Finance Roldan G. Gorgonio, we received the CoA report on July 2, 2021. Therefore, we still have until Sept. 2, 2021, to satisfy the CoA’s observations through our categorical replies,” Mr. Dar said.

“Since July, we have been consolidating the respective reports from our concerned DA offices and operating units, and we will submit them promptly to CoA, on or before Sept. 2,” he added. — Revin Mikhael D. Ochave

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