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PSE wants to allow initial listing of preferred shares

THERE are companies which are already operating but prefer not to offer common shares.

THE Philippine Stock Exchange (PSE) has proposed to allow the initial listing of a company’s preferred shares without the need to list its common shares, a move which it expects to help in raising funds for businesses.

“There are companies which are already operating but prefer not to offer common shares until their full income earning potential is realized. Thus, PSE would like to offer these companies the option to tap the stock market for funding via the issuance of preferred shares, without the listing of their common shares,” the exchange said through a memorandum on Wednesday.

The local bourse said the proposal was inspired by foreign exchanges, which allow the listing of preferred shares on their own, such as the Singapore Exchange, Australia Stock Exchange, New York Stock Exchange, and the Taiwan Stock Exchange.

“The proposed rule will give issuers flexibility to structure a fundraising structure that is best suited to their business operations and strategies while providing the investing public the opportunity to participate in the economic benefits as shareholders,” the PSE said.

Under the proposal, a company must offer a minimum of P5-billion preferred shares to list them on the market.

Aside from the required minimum offering, existing rules under Article III, Parts A to F of the PSE Consolidated Listing and Disclosure Rules will apply.

The PSE also wants to set a minimum public ownership requirement (MPO) for the listing of preferred shares, instead of the existing 20% MPO requirement based on a company’s public outstanding and listed common shares.

“Upon and after listing, the applicant company shall have at least 1,000 public stockholders, each owning stocks equivalent to at least one board lot,” the local bourse proposed.

Owners of preferred shares may also exercise voting rights as stated in the Revised Corporation Code.

Companies initially listing only preferred shares may also offer common shares later on. However, it is not required.

The exchange is seeking comments on the proposal from interested parties. — Keren Concepcion G. Valmonte

Del Monte Pacific’s profit surges to $30M

DEL MONTE Pacific Ltd. (DMPL) reported a net profit of $30.16 million for its third quarter ending in January 2021, nearly four times the $6.67 million it earned the previous year, as sales grew in all product categories.

“DMPL returned to profitability in [fiscal year] 2021 and is well-positioned in this environment given its nutritious, long shelf-life products which enable consumers to prepare meals at home and build their immunity amidst the pandemic,” DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said in a statement on Thursday.

Revenues increased 13.1% to $628.4 million from $555.3 million, as sales in the US, Philippines, and other international markets grew due to the demand for the company’s products.

In the Philippines, sales improved by 19.9% in US dollar terms and 13.8% in peso terms.

Del Monte Philippines, Inc. (DMPI) expanded its product offerings and dived into e-commerce platforms as most consumers stayed at home amid the health crisis.

The company launched Del Monte Deluxe Gold and Fiesta Fruit Cocktail in smaller cans as its limited edition Christmas products for families hosting smaller celebrations. In January, a more compact version of Del Monte’s tomato sauce also hit the shelves “in an effort to extend its use in everyday dishes.”

“Season-relevant recipes were highlighted vis-à-vis meal planning in Del Monte Kitchenomics, the company’s successful long-running recipe program,” DMPL said.

DMPI also invested in digital marketplaces, pursuing partnerships with online shopping platforms Lazada and Shopee while the country was on lockdown. This resulted in significant growth in e-commerce sales, which remained robust even post-lockdown.

Meanwhile, US subsidiary Del Monte Foods, Inc (DMFI) finished the quarter with $440 million in sales from $391.8 million, which accounted for 70% of group sales.

“Our US business has turned around with two consecutive quarters of earnings. Consumers continue to place their trust in our brands and products which promise high quality and nutrition,” Mr. Campos said.

DMFI was given a “Product of the Year” recognition for innovation. DMPI-produced Del Monte Deluxe Gold Pineapple was awarded in the fruit category, while Del Monte Veggieful Pocket Pies won in the convenience meal category.

DMPL earned $48.8 million in net profit for the nine months ending in January 2021, a reversal of its net loss of $69 million in the same period in the previous year.

Sales for the nine-month period meanwhile inched up by 13% to $1.7 billion from the $1.5 billion covering the first nine months of 2019.

“The group will continue to improve and expand its offering of trusted, high-quality products, while making these more readily available to consumers through traditional and digital channels, and through more convenient packaging formats,” the company said.

DMPL said it plans to enter China’s market this year, as well as in other underserved markets.

“Del Monte Pacific Limited continues to explore an IPO option for Del Monte Philippines, Inc, subject to market conditions. An announcement would be made in due course, as appropriate,” the company said.

DMPL shares at the stock exchange rose by 3.88% or P0.36 on Thursday to close at P9.65 apiece. — Keren Concepcion G. Valmonte

PCC defends Makati subway review

THE Philippine Competition Commission (PCC) defended its review of the terminated Makati City subway merger proposal, explaining that the transaction was withdrawn due to pandemic-related concerns.

Its stand came after Philippine Infradev Holdings, Inc. on Tuesday said that the investment of Hong Kong Binjiang Industrial Ltd. in the listed firm’s subsidiary Makati City Subway, Inc. (MCSI) had been terminated.

The company said the investment agreement had been under PCC review for almost a year.

On Thursday, PCC said in a statement: “The parties withdrew their notification of the transaction currently undergoing merger review, and informed the MAO (mergers and acquisitions office) that they decided not to pursue the transaction and to terminate their Share Purchase Agreement due to circumstances arising from the COVID-19 pandemic.”

The release of funds under the agreement, the company said, required PCC approval of the transactions.

But the commission said that the withdrawal was pandemic-related.

PCC said that it was informed on Tuesday about the termination of Hong Kong Binjiang’s proposed acquisition of shares in MCSI.

The mergers office, the commission said, accommodated both parties through their merger notification process, which includes “the conduct of multiple consultations and the grant of their several requests for extensions equivalent to 127 days, since they filed their notification with the PCC in September 2020.”

The commission said that its mergers office recognizes that businesses have full discretion to make operations decisions within the bounds of the law and that it will wait for further notifications on the transaction.

“For its part, the MAO carries out its functions in a non-discriminatory manner in accordance with the statutory timelines and regulatory requirements in merger reviews, with this transaction as no exemption,” PCC said.

Philippine Infradev is building the $3.7-billion Makati City Subway Project, a 10-kilometer railway system traversing the city’s central business district.

The company on Tuesday said that MCSI and Richer Today, Inc. will form an unincorporated joint venture for the financing and acquisition of lots for the subway’s Station 5 under a legally binding term sheet.

Shares in Philippine Infradev Holdings closed at P1.43 each on Thursday, up 0.70% or one centavo. — Jenina P. Ibañez

Liza Soberano to voice lead character in Trese animated series

FILIPINO actress Liza Soberano will provide the voice of Alexandra Trese in the Filipino-language version of the Netflix Original Anime series Trese, announced the streaming company.

The series is based on the Philippine graphic novel created by Budjette Tan and KaJO Baldisimo.

Set in a Manila where the mythical creatures of Philippine folklore hide amongst humans, Alexandra Trese finds herself going head to head with a criminal underworld of malevolent supernatural beings.

“It’s an honor to be the voice of an iconic character such as Alexandra Trese. I’m a huge fan of Budjette and KaJO’s award-winning Trese comics. Maraming salamat! Excited na ako! (Thank you! I’m excited!),” Ms. Soberano, the star of My Ex and Whys, Just the Way You Are and Alone/Together, said in a statement.

“As a fan of the komiks, I knew that the title role of Alexandra Trese was going to be challenging to cast for the animated series. It is important for the voice talent to embrace the layered character to fully become Alexandra Trese,” executive producer Jade Oliva said in a statement.

Meanwhile, Filipino-Canadian actress Shay Mitchell (YOU, Pretty Little Liars) will voice the lead character in the English-language version.

“My concerns went away as soon as Shay Mitchell stepped into the recording booth. Shay’s Alexandra exceeded my expectations and she delivers a performance of strength, determination and family duty that is at the very core of the character. If that wasn’t enough, imagine my delight when we confirmed Liza Soberano joining the Filipino voice cast! I am a big fan of hers and she fits the character so well,” Ms. Oliva said in a statement about the actors cast for the role.

Trese will premiere soon on Netflix. — MAPS

Vivant unit to invest up to P364M in Buskowitz Finance

A UNIT of Vivant Corp. is infusing up to P364 million in Buskowitz Finance, Inc. (BFI) to give it a 34.85% equity share in the solar energy developer and expand its renewable energy portfolio, the Cebu-based listed firm said on Thursday.

In a stock exchange disclosure, Vivant said that its wholly owned subsidiary Vivant Energy Corp.’s renewable energy (RE) unit had inked the shareholders’ agreement with BFI on Wednesday.

“VREC (Vivant Renewable Energy Corp.) will be investing up to P364 million through an initial subscription in BFI, which will be completed through a series of infusions via deposits for future subscription of shares pursuant to an increase in the authorized capital stock of BFI,” the parent firm said.

VREC is wholly owned by Vivant Energy, the holding company for the energy investments of Vivant Corp.

BFI, also known as Buskowitz Energy, is a solar engineering, procurement and construction company that also provides financing solutions for its customers. It specializes in rooftop solar photovoltaic installations.

The Vivant parent firm said in a press release that the equity investment is part of its “commitment to expand its RE portfolio.”

“As a group, Vivant’s goal is to provide adaptable and forward-looking solutions that address sustainability while improving everyday living of our communities. These solutions include renewable energy, which is why we are committed to expanding our renewable energy capacity,” Vivant Energy President Arlo A.G. Sarmiento said in a statement.

BFI Chief Executive Officer James Carlos Buskowitz said that VREC’s series of investments would help the solar energy firm in continuing innovations and making a positive impact.

“At the end of the day, the benefits of harnessing the power of the sun goes beyond lowering costs. Sustainability is the true bottom line and sustainable development is the common future, where the needs of this generation must be met without compromising the needs and growth of future generations,” Mr. Buskowitz said.

Earlier, BFI said that it was looking at raising around P1 billion for its solar rooftop projects, about 40% of which would be funded by a local firm.

Two years ago, BFI and Vivant collaborated on their first project when the former provided engineering, procurement, and construction services for several rooftop solar projects. At present, the two firms have reached a solar installation capacity of 2.4 megawatts.

Vivant shares in the stock exchange improved 3.31% or 0.48 centavos to close at P14.98 apiece on Thursday. — Angelica Y. Yang

Second season of K-romance Love Alarm starts with a twist

THE SECOND season of the Korean romantic drama Love Alarm opens with a twist caused by an app upgrade.

The show revolves around a fictitious mobile app, Love Alarm, which sends the user a notification when someone who is romantically interested in you appears within a 10-meter radius. Love Alarm Season 2 starts four years after the release of the app, which has been upgraded. Love Alarm 2.0 alerts users a list of people who are likely to like them in the future and vice versa, and is now equipped with a “shield” function that allows users to hide their feelings. The season revolves around the romantic entanglements this causes for Kim Jo-jo (Kim So-hyun), Lee Hye-yeong (Jung Ga-ram) and Hwang Sun-oh (Song Kang).

Directed by Kim Jin-u, it also stars Ko Min-si, and Kim Si-eun.

“Jojo used to be very defensive so she was wary about her feelings being exposed to others. She was afraid of other people knowing how she felt which led her to use the shield function on the love alarm app so that no one knows how she actually feels,” Kim So-hyun said about her character during Netflix’s virtual media launch on Mar. 8. She added that the shield function will lead her character to undergo personal growth.

“The character (Sun-oh) is someone who does not ring other people’s alarms, but his alarm gets rung,” Song Kang said of his character. “While someone’s feelings may not be the same, and when you have feelings for someone [that is] it’s not reciprocal — sometimes unrequited love is bound to be really sad.”

“In the second season, as you know the characters are affected by the new and updated version of the application. With the app (upgrade) 2.0, there are decisions that you are informed of through the app…,” director Kim Jin-u said of the new season.

“I wanted to portray the process of how and what kind of decision these characters will make while being loyal to each character’s personalities that were established in the first season,” Mr. Kim added.

The second season of Love Alarm premieres on Mar. 12 on Netflix.  Michelle Anne P. Soliman

BSP unlikely to raise rates soon

BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno on Thursday said policy makers are not inclined to tighten monetary policy yet as they see the uptick in inflation as “temporary,” with pressures coming from the supply side.

“Notwithstanding the impact of supply-side factors on the inflation path, we are not inclined to tighten monetary policy at this time,” Mr. Diokno told reporters at an online briefing on Thursday.

Headline inflation stood at 4.7% in February, the highest since December 2018’s 5.1% reading and marking the second month it breached the BSP’s 2-4% annual target. Data from the Philippine Statistics Authority showed the rise in the consumer price index was fueled by price hikes in staples such as meat, fish, and rice.

Mr. Diokno attributed inflation’s climb in the past months to supply-side factors such as the weather disruptions in the latter part of 2020, the African Swine Fever outbreak, and the higher global oil prices. The government has responded to these with non-monetary measures such as imposing a 60-day price cap for pork and chicken products and easing import restrictions for pork.

“Following the standard approach of central banks in responding to supply-side shocks, the BSP typically accommodates the initial effects of supply shocks as these tend to be short-lived in nature,” Mr. Diokno said.

The central bank in February kept the overnight reverse repurchase, lending, and deposit rates at record lows of 2%, 2.5%, and 1.5%, respectively. It, however, raised its inflation forecast for the year to 4% from 3.2% previously.

Last year, the BSP slashed rates by a total of 200 basis points to support the economy. The Monetary Board will have its next policy-setting meeting on March 25.

Mr. Diokno yesterday stressed the importance of managing inflation expectations by informing the public about where higher prices are coming from.

“Core inflation has been generally stable. With the ongoing health crisis, demand-side price pressures are mostly subdued,” he said, noting this is mainly due to the high unemployment level and subdued lending activity.

Core inflation, which excludes volatile prices of food and fuel, quickened to 3.5% in February from 3.4% in January.

The central bank chief said an oil price shock could trigger secondary effects through adjustments in inflation expectations, clamor for wage hikes, and spillovers to other prices such as transport fares and utility charges.

Right now, however, Mr. Diokno said there is “limited evidence” of such second round effects.

The central bank’s pledge to remain accommodative will help the economy recover, ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa said in a note.

“Wielding monetary tightening to address this type of inflation would never truly stamp out cost-push inflation with rate hikes likely unable to make pork prices cheaper, vegetables less costly, flatten global oil prices nor reverse pandemic-inspired social distancing guidelines that limit tricycle passenger capacity,” Mr. Mapa said.

“Adjusting monetary policy for anything other than getting prices in line or supporting the stimulus efforts will likely need to take a backseat for now,” he added.

Meanwhile, the BSP may have to scale down its bond purchases in case the US Federal Reserve becomes less accommodative, Maybank Kim Eng said in a separate note.

“The Philippines and Indonesia do not enjoy the privilege of having a reserve currency and remain dependent on foreign financing. An early Fed taper could bring an end to the weak US dollar environment and penalize the Indonesian rupiah and Philippine peso for monetizing their fiscal deficits and bond-buying programs,” it said.

Maybank Kim Eng noted that the BSP and Bank Indonesia may “have to pull back from bond buying if their currencies see a sharp sell-off or inflation jumps.” — L.W.T. Noble

Emperador earnings up 18% to P8 billion

BRANDY AND WHISKEY manufacturer Emperador, Inc. posted an 18% increase in its earnings to owners to P8 billion last year after its international business remained strong amid the coronavirus disease 2019 (COVID-19) pandemic.

The listed company said in a regulatory filing on Thursday that its revenues for 2020 reached P52.6 billion after the strong performance of its international business.

Emperador said it continued the growth trajectory of its businesses in the United Kingdom, Asia, Europe, United States, Netherlands, Sweden, and Russia.

“While certain aspects of the business have been affected by the impact of COVID-19 particularly on-trade and global travel retail resulting from lockdowns and dry law implementation, these have been offset by increased sales in off-trade and e-commerce,” the company said.

“While not totally impervious to the adverse effects of the conditions, Emperador’s global business adapted well to new consumption trends,” it added.

Emperador President Winston S. Co said the resilience of the company revealed the strength of the business and its whisky and brandy portfolio globally, which resulted in stability and growth despite the challenges.

“The company also took the opportunity to streamline efficiencies to enable the company to be nimble and effective in the markets. 2020 has set a new path and platform for our future growth,” Mr. Co was quoted as saying.

Emperador is a subsidiary of Alliance Global Group, Inc., the holding firm of tycoon Andrew L. Tan, who also has interests in real estate, hotel and casino, and fastfood chain McDonald’s Philippines.

It owns Emperador Distillers Inc.; Scotch whisky maker Whyte and Mackay Group Ltd.; and Spain-based Bodegas Fundador.

On Thursday, shares of Emperador at the stock exchange rose 0.39% or 0.04 centavos to end at P10.20 apiece. — Revin Mikhael D. Ochave

Central bank targets to finalize regulations for open finance by next quarter

THE BANGKO SENTRAL ng Pilipinas (BSP) targets to finalize an open finance circular by next quarter to set rules on the sharing of customers’ financial data among institutions.

“Open finance is seen to shape the industry. It is part of BSP’s broader efforts to foster financial innovation while safeguarding consumer interests and the stability of the financial system,” BSP Governor Benjamin E. Diokno said at an online briefing on Thursday.

A draft proposal released in December showed the circular will allow for the establishment of an Open Finance Oversight Committee that will be recognized by the central bank. The self-governing, industry-led body will be responsible for its own membership and participation rules, standards and procedures.

Based on the draft, open finance refers to the “sharing and leveraging of customer-permissioned data among banks, other financial institutions and third parties to build innovative financial solutions, such as those that provide real-time payments, greater financial transparency options for account holders, marketing and cross-selling opportunities.”

Mr. Diokno said open finance will help address the “asymmetry” in data systems of banks and other financial service providers.

“Based on our consultations, the top use cases on open finance identified by key stakeholders revolved around customer identification, payment transaction, credit scoring and enhancing customer insight and even utilizing it for AML (anti-money laundering) monitoring and compliance),” Mr. Diokno said.

He added that some parties also expressed interest in utilizing open finance to expand data supply bank products such as insurance and entitlements.

Consumers will also benefit as open finance, together with interoperable payment systems, could lead to better financial inclusion, Mr. Diokno said.

The central bank said the underlying idea of open finance is the sharing of transaction data, but only if customers allow it.

Fintech Alliance.ph Chairman Angelito “Lito” M. Villanueva earlier said that while the industry is supportive of open finance, the country’s data privacy laws, such as the Republic Act (RA) No. 1405 or the Deposit Secrecy Law and RA No. 10173 or the Data Privacy Act,  are major hurdles to creating a framework.

Mr. Villanueva said once established, members of the Open Finance Oversight Committee could formulate their own industry Privacy Code that would be submitted to the National Privacy Commission for approval to mitigate risks associated with accessing personal information under the framework. — L.W.T. Noble

Golden Globe organizers hire advisers to tackle diversity and ethical issues

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LOS ANGELES — The organizers of the Golden Globes on Tuesday announced they have hired experts to tackle concerns around diversity and ethics following a furor over the lack of Black members in the group.

The Hollywood Foreign Press Association (HFPA) said in a statement that Dr. Shaun Harper, founder of the Race and Equity Center at the University of Southern California, would conduct a review to help develop “a comprehensive, multi-year, diversity, equity and inclusion strategy.”

The HFPA said it has also retained a law firm that will develop a system “for investigating alleged violations of our ethical standards and code of conduct.”

The moves follow a probe last month by the Los Angeles Times that noted there were currently no Black people among the 87-member group of foreign entertainment journalists who make up the HFPA.

The Los Angeles Times also raised long standing ethical questions over the close relationships between the HFPA and movie studios that may influence the choice of Golden Globe nominees and winners.

The controversy overshadowed the Golden Globes ceremony in Feb., which is one of the major Hollywood award shows leading up to the Oscars in Apr. The HFPA came under fire when the Golden Globe nominations this year failed to recognize some high-profile movies and TV shows by and about Black people, including Da 5 Bloods and I May Destroy You.

The nominations did include multiple actors and directors of color, and Golden Globes were awarded in February to three Black actors, and also to Chinese-born director Chloe Zhao for her film Nomadland, which also won the top prize for best drama film.

The HFPA said on Tuesday that it was committed to “fostering an environment that better reflects our core values” and that “restores faith, trust and confidence in our organization.” — Reuters

Remote learning seen eroding job competitiveness

THE suspension of face-to-face classes is depriving students of quality education, diminishing their prospects of landing high-paying jobs a year into the first class suspensions, the Philippine Business for Education (PBEd) said.

In a statement Wednesday, PBEd Executive Director Love B. Basillote said the longer schools hold off from resuming physical classes, “the bigger the economic losses will be for our students — future workers who are not learning properly right now because of inaccessibility and poor quality of education.”

She added graduates who don’t learn properly tend to miss out on skills that make them competitive in the labor market, making them “less likely to land higher paying jobs.”

The government announced in March 2020 the suspension of face-to-face classes days before the declaration of a nationwide lockdown, forcing schools to shift to online classes and learning modules.

The World Bank said in a report that school closures of more than seven months result in estimated annual earnings losses of around P25,700. Losses could top P1 million per student if they work until retirement.

PBEd urged the government to develop a plan allowing the safe reopening of face-to-face classes to ensure students receive quality learning. — Gillian M. Cortez

Nickel Asia income climbs 52%

NICKEL ASIA Corp. posted an attributable net income of P4.07 billion for 2020 or a 51.9% increase year on year due to higher ore export prices.

In a regulatory filing on Thursday, the listed company said its total revenues rose 21.5% to P21.77 billion from P17.92 billion in 2019.

“The significant improvement in the realized nickel price of the combined ore exports and ore deliveries to the two plants in 2020 more than offset the slight decline in sales volume and the less favorable (Philippine) Peso to United States Dollar exchange rate,” Nickel Asia said in the disclosure.

Nickel Asia disclosed that it exported 10 million wet metric tons (WMT) of nickel ore in 2020, a 3.9% decline from 10.4 million WMT the year earlier.

Despite the lower ore exports, the export prices rose 45% year on year to $33.99 per WMT in 2020.

Further, Nickel Asia said ore deliveries to the Taganito HPAL Nickel Corp. (THPAL) and Coral Bay Nickel Corp. (CNBC) HPAL plants dropped 2.4% to 8.2 million WMT for 2020, with an average price of $6.22 per pound of payable nickel.

“On a combined basis, the company sold a total of 18.2 million WMT at $22.46 per WMT and 18.8 million WMT at $16.69 per WMT in 2020 and 2019, respectively,” Nickel Asia said.

According to the company, the total operating cash costs for 2020 improved 1% year on year to P10.68 billion. It added that the realized Philippine Peso to United States Dollar exchange rate for ore sales in 2020 fell 5% to P49.15, against P51.72 the previous year.

Martin Antonio G. Zamora, Nickel Asia President and Chief Executive Officer, said the demand for nickel ore did not falter amid the coronavirus disease 2019 (COVID-19) pandemic.

“As Indonesia resumed its ban on direct export of nickel ore at the start of 2020, we realized higher prices for our ore exports,” Mr. Zamora said in the statement.

“In spite of every consequence the global standstill brought, we took care of our people, we focused on our communities, and Nickel Asia survived 2020,” he added.

On Thursday, stocks of Nickel Asia at the stock exchange rose 7.21% or 0.37 centavos to end at P5.50 apiece.

CARMEN COPPER CORP. RESUMES OPERATIONS
In a separate disclosure on Thursday, Atlas Consolidated Mining and Development Corp. announced that its Carmen Copper Corp. (CCC) has received approval from the Department of Environment and Natural Resources (DENR) to restart mining operations in the Carmen Pit.

However, CCC said the approval does not allow the resumption of work at the parts affected by the slide that occurred on Dec. 21 last year.

CCC said it will continue to implement safety measures in the rehabilitation of impacted areas at the pit and is working closely with different regulating agencies and local government units in addressing the ongoing rehabilitation initiatives.

In December, the operations of CCC were suspended after a slide occurred at its mining site in Toledo City, Cebu due to rains aggravated by Typhoon Vicky. The incident killed at least four people.

On Thursday, stocks of Atlas Mining at the stock exchange rose 2.22% or 14 centavos to end at P6.46 each. — Revin Mikhael D. Ochave