*on buyback* Phinma Corporation
...binili na St. Jude

Acquisition of St. Jude College, Inc. by PHINMA Education Holdings, Inc.

PHINMA Education Holdings, Inc., a wholly-owned subsidiary of PHINMA Corporation, signed a Share Purchase Agreement today for the purchase of 57,347 shares in St. Jude College, Inc. constituting 95.6% of the issued and outstanding shares of said school, for Php 370.2 million. The transaction also closed today. 

St Jude College, which is located in Manila, started as a School of Nursing in 1968 and is today a full service educational institution serving 3,050 students in basic education, college, and graduate school programs.

Known mainly for tertiary allied health science courses, it also offers programs in business, education, information technology, and hospitality.

source: http://edge.pse.com.ph/openDiscViewer.do...KrkWJ.dpbs

...more details

Phinma buys St. Jude College for P370 million

PHINMA Corporation on Wednesday said its subsidiary acquired a majority stake in the company behind St. Jude College in Manila.

In a disclosure to the stock exchange, the listed company said Phinma Education Holdings, Inc. inked a share purchase agreement to buy 57,347 shares, representing 95.6%, in St. Jude College, Inc. Phinma said the transaction was valued at P370.2 million.

“The corresponding deeds of absolute sale were executed today and the transfer will be recorded in the books of St. Jude College upon issuance of the appropriate tax clearances,” the company said.

St. Jude College was established in 1968 as a School of Nursing, but is now a full service educational institution. It has 3,050 students enrolled in basic education, college, and graduate school programs. It offers courses in allied health sciences, business, education, information technology, and hospitality.

For the first nine months of 2017, Phinma Education reported its consolidated revenues were flat at P1.5 billion. Systemwide student enrollment went up by 8% to 58,837 for School Year 2017-2018.

“However, the government’s K to 12 education reform program, which adds two more senior high school years, continued to adversely affect college freshman enrollment in favor of senior high school enrollment, reducing the network average tuition per student. Operating expenses of the holding company also increased due to one-off business development expenses for local expansion and for setting up of operations abroad,” Phinma said in its third quarter report.

source: http://bworldonline.com/phinma-buys-st-j...0-million/


Phinma back in cement business

After a 14-year hiatus, the Phinma group has returned to the cement business to ride on the country’s projected infrastructure boom, reviving its old flagship brand “Union Cement” in a bid to rebuild a formidable market position.

By the first quarter of next year, a new cement factory with an initial capacity of two million tons a year in Bataan is expected to be operational, Eduardo Sahagun, president and chief executive officer of Phinma’s cement production arm Philcement Corp., said in a chance interview with the Inquirer last week.

But ahead of the completion of the brand-new plant, Sahagun said Philcement had started selling cement to the market, for now sourcing supply through toll manufacturing arrangement. This is to prepare the distribution network once the new plant becomes operational.

Union Cement will add about two million bags to the cement industry’s supply this year, he said.

“You have to build the channel. When the plant comes, how can you sell if you don’t have the channel?” said Sahagun.

“We reclaimed our old dominant brand,” said Phinma Corp. president and chief executive officer Ramon del Rosario Jr., referring to Union Cement.

Sahagun explained that Union Cement trademark was already registered with the Phinma group, having been abandoned by Holcim Philippines Inc.

The Phinma group sold its majority interest in Union Cement Holdings Corp. in 2004 and the business eventually became part of Holcim, currently the leading cement producer in the country.

Sahagun, a veteran in the cement industry, headed Holcim Philippines from 2013 until his retirement on April 2017.

Aside from heading Phinma’s new cement business, Sahagun is president and CEO of Phinma’s other subsidiary, Union Galvasteel, a market leader in the manufacturing and distribution of pre-painted and other galvanized roofing, and of galvanized steel building products such as building system components like steel deckings, c-purlins, door jambs, steel trusses, pre-engineered building structures and insulated panels for commercial, industrial and residential applications.

Sahagun said Union Cement had entered the cement market at a very competitive price of about P180 per bag for dealer pricing. But rather than the pricing, he said the group would compete “on the basis of quality and service.”

He is confident that Philcement could revive Union Cement as a very competitive brand and eventually build more capacity in the years ahead. He declined to say how much would be invested to build the first plant in Bataan.

Over the years he had spent in the cement industry, Sahagun said one key lesson would be to become a reliable supplier. “You look after the customer. In the end, if they need you and you are not there, it will cost them a lot of money,” he said.

Sahagun is unfazed by the bad earnings reports of many listed cement companies (except for Eagle Cement Corp.).

“It’s not that they can not sell. Their cost is higher and their price is down. But they can sell everything they have, they even imported a lot,” Sahagun said, noting that the cement industry imported about four million tons of clinker and 2.8 million tons of cement last year.

“So who will supply that? The new plants can’t catch up,” he said.

Sahagun is also confident that infrastructure spending in the country—in line with the government’s “Build, Build, Build” program—would pick up pace this year.

source: http://business.inquirer.net/248262/phin...t-business


Phinma to spend up to P700 million for cement terminal in Bataan

The Phinma group is planning to shell out as much as P700 million for a cement plant in Bataan, in line with the company's recent revival of its Union Cement brand.

According to Phinma Corporation president and CEO Ramon del Rosario, Jr., the company will purchase a cement plant in Mariveles, Bataan that is set to be operational by May 2019.

"It's a cement terminal, because we will be importing the cement. It will be in Mariveles, and it will be able to accommodate two million tons," he told GMA News Online on the sidelines of the ASEAN Forum on Enterprise for Society.

"Initially, that's what we will use and then we will distribute all over the Philippines. For now, we do not intend to go beyond that because there's a surplus of cement in Southeast Asia anyway and in Asia in general," he added.

According to del Rosario, the terminal will cost between P500 to P700 million funded internally, and will be the hub for large vessels coming from Vietnam.

"Mariveles is a deep sea port and we want to bring in very large vessels from Vietnam—it's called a Panamax vessel—which improves the efficiency and the cost per bag," he said.

"If we can accommodate these types of vessels, then our cost per bag will go down and therefore we will be able to benefit the consumer at the end of the day," he added.

In 2004, the Phinma group sold its majority interest in Union Cement Holdings Corporation, which became part of Holcim Philippines Inc.

Holcim, one of the leading cement producers in the country, has since dropped the Union Cement brand.

"In the meantime, we're already beginning to import. I think we already brought in the first four shipments two million bags," del Rosario said.

source: http://www.gmanetwork.com/news/money/com...aan/story/


Ayala unit expects to sign Phinma Energy deal soon

AC Energy, Inc. expects to sign in a few days the definitive agreement to acquire the majority stake in Phinma Energy Corp. to move the deal forward for approval by the antitrust watchdog ahead of the “specific strategies” for the acquired assets, including a stalled liquefied natural gas (LNG) import terminal, its top official said.

“We expect to sign the definitive documents fairly soon, within the next few days, so that’s the next step and then soon after that we will file for PCC (Philippine Competition Commission) approval,” Eric T. Francia, AC Energy president and chief executive officer, told reporters.

Mr. Francia said the company expects to complete the deal for Phinma Energy by mid-year.

“So we’re probably looking at the middle of the year — May, June, July maybe, that area — in terms of getting PCC regulatory approval and then we have to make the mandatory tender offer, which typically takes 90 days,” he added.

On Jan. 9, AC Energy announced that it had signed a “mutually strategic agreement” with Phinma Energy that gives the Ayala-led company a 51.48% stake in the listed energy company for P3.42 billion.

Mr. Francia said PCC takes about 60 to 90 days in approving a project before it moves to a second phase of approval process that takes another 60 days or so.

“It will really depend on the results of the tender offer because if no one tenders, the minimum that AC Energy would effectively be guaranteed is around 68%. That’s how the deal was structured,” he said.

The deal calls for the sale by listed holding firm Phinma Corp. of its 1,283,422,198 shares or 26.25% in Phinma Energy for P1.75 billion based on the unit’s implied 100% equity value of P6.7 billion.

Phinma Corp. and its parent Philippine Investment Management (PHINMA) Inc. will then prompt Phinma Energy to approve the issuance of 2,632,000,000 in new shares, to which AC Energy will subscribe. The parent firm will also sell its 25.23% interest in the energy subsidiary.

Mr. Francia said the resulting stake of AC Energy after the subscription to the new share could reach 68%, “and then on top of that as and when the public tenders, that 68% can go up.”

He declined to say how the deal would result in beefing up the installed energy capacity attributable to the company, citing the pending approvals.

“Phinma Energy is about a little over 400 megawatts (MW) on a 100% basis, so it really depends on how much Phinma Energy we will get, post tender offer,” he added.

Asked about the pending LNG project of Phinma Energy, Mr. Francia said: “We will study that. We’ve always been keeping our minds and eyes open to LNG although I could tell you that there’s nothing imminent or specific.”

“It’s still very challenging to justify project economics, especially in a competitive market situation. You really need very big or strong balance sheets to back that in the absence of long-term power purchase agreements. It makes it very very challenging. But we keep an open mind,” he added.

In April last year, Phinma Energy unit Phinma Petroleum and Geothermal, Inc. told stockholders that it was developing an LNG facility with a 120-MW power plant in Argao, Cebu province, which company officials expected to be completed by 2022 to 2023. They later said the project was on hold ahead of better electricity prices. 

source: https://www.bworldonline.com/ayala-unit-...deal-soon/


Phinma finalizing acquisition of Indonesian school this year

THE Phinma Group said the proceeds from a recent transaction with Ayala Corp. will help materialize this year its push to expand its education business in Southeast Asia while also beef up the company’s construction business.

“Our education business continues to do very well and we’re looking at more acquisitions, both in the Philippines and in Southeast Asian countries,” Phinma Corp., President and CEO Ramon R. del Rosario told BusinessWorld on the sidelines of the Philippine Competition Commission’s forum on Friday.

“We are in the process of closing an acquisition in Indonesia, hopefully in the near future… within the year…. we’re hoping to bring our model of bringing quality eduction for the poor to Indonesia as well,” he added.

The acquisition involves an educational institution in Surabaya, Indonesia which has less than 5,000 students. The value of the deal was not disclosed.

Mr. Del Rosario said the company is looking at possible acquisitions in Vietnam, as well as the Philippines.

“We continue to be on the lookout for significant acquisitions, including one in Metro Manila,” he said.

Phinma owns six universities and colleges, namely Araullo University, Inc.; Cagayan de Oro College, Inc.; University of Iloilo, Inc.; University of Pangasinan and subsidiary Southwestern University; and St. Jude College Manila, Inc.

“We have organic growth, the schools have been growing quite well, which is not the experience of everybody because of the free tuition but we managed to continue growing mainly because of the strength of our board results. And that’s where the bulk of significant investments will be,” Mr. Del Rosario said.

He said funding for the acquisitions will be supported by a mix of cash flow from its operating schools and the proceeds from the recent sale of a 51.48% stake in Phinma Energy Corp. to AC Energy Inc.

Mr. Del Rosario said part of the fresh funds will go to Phinma’s construction businesses. The company has a 96.82% interest in Union Galvasteel Corp. (UGC) , a manufacturer and distributor of iron and steel products. It also has an 85.7% stake in PhilCement Corp.

The company expects its cement terminal in Mariveles, Bataan to be completed and operational by the third quarter of 2019.

“(Bringing down cost) is a serious effort. It will be supported by a terminal that will allow large shipments to come in which will hopefully give us advantage to unit cost because large shipments are more efficient,” Mr. Del Rosario said.

The terminal is seen to help PhilCement Corp. achieve profitability this year, despite the Trade Department’s imposition of a provisional duty of P210 per metric ton of imported cement.

Despite this, Phinma is still determined to proceed with the expansion plans for its cement business.

“We feel we can find ways to cope. Of course, it will affect the profitability of our business but I think more importantly it will affect the ability of smaller importers to compete in the market. And I don’t know if that’s a good thing at this point especially if it results in a disruption of supply, “ Mr. Del Rosario said.

“We will proceed with our business plans. We don’t think there is a basis for keeping the tariffs there anyway on a long term basis. Even if they do, we will have to find ways of packing our product in our distribution cost as efficient as possible,” he added.

Asked if there are plans to expand capacity after the Mariveles terminal begins operations, Phinma Business Development Manager Armand Joseph N. Morales replied in the positive but declined to provide specifics.

“There are plans. But we’ll grow with the market,” he said in an interview in Quezon City on Monday.

In the January to September period last year, Phinma’s net income attributable to the parent surged 270% to P136 million, from P36.7 million.

source: https://www.bworldonline.com/phinma-fina...this-year/


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