Aboitiz Equity Ventures, Inc.

Aboitiz holding firm to buy back shares

ABOITIZ Equity Ventures Inc. (AEV) is set to reacquire its own shares and buy additional ones in its energy and banking subsidiaries.

In a disclosure on Monday, AEV said its board of directors had “renewed the company’s authority” to reacquire shares using “internally generated excess cash” and purchase more shares in AboitizPower Corp. and Union Bank of the Philippines (UnionBank).

It is up to the company’s management to decide when “to opportunistically acquire” these shares “and when market prices dictate,” it added.

AEV is the public holding company of the Aboitiz Group. Besides energy and banking, the firm also has major investments in services, food, infrastructure and land.

Incorporated in 1998, AboitizPower is into power generation and distribution and offers retail electricity services. It has interests in both renewable and non-renewable energy plants.

First known as Union Savings and Mortgage Bank, UnionBank acquired its universal banking license in July 1992.

The disclosure comes after AEV reported that its consolidated net income increased by 9 percent to P17.3 billion in the first nine months of 2018 from P15.9 billion in the same period last year.

source: https://www.manilatimes.net/aboitiz-hold...es/474082/
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AEV subsidiary obtains P9-B loan for bulk water project

ABOITIZ EQUITY Ventures, Inc. (AEV) on Monday said it is borrowing P9 billion from several banks for its bulk water project in Davao City.

In a disclosure to the stock exchange on Monday, the listed conglomerate said subsidiary Apo Agua Infrastructura, Inc. signed an omnibus notes facility and security agreement for the P9-billion loan with a consortium of lender-banks.

The loan will be used for the Apo Agua project, a bulk water system with a capacity of treating 347 million liters of water per day, and an integrated 2.5-megawatt hydro-electric power plant.

“This is our first bulk water project. But we’re looking in quite a few,” AEV Chief Financial Officer Manuel R. Lozano said in an interview ahead of the signing of the loan agreement.

He said the Apo Agua project is now underway, with the engineering, procurement and construction (EPC) contract signed.

“Very soon, we’ll be ordering a lot of equipment,” said Mr. Lozano, who is also AEV chief information officer. “Once we signed the EPC [contract], I guess that’s the trigger.”

Aside from the bulk water project, AEV also has a stake in water distribution in San Fernando, Pampanga and in Malvar, Batangas.

“In water, [either] you’re the bulk supplier or you’re the distributor. In this particular case, we’re the source of the water. We’re delivering it to Davao City Water District, and sila ang nagdi-distribute (they distribute),” Mr. Lozano said.

“We need more bulk water projects, maybe desalination, maybe other types of ways to get clean potable water. So this is our first but we have a team that’s focused on water and they’re looking at several other projects as well. I cannot tell you for sure if it will happen in the next year or so, but definitely we’re trying. We’d like to have more,” he added.

Mr. Lozano said AEV is not focused on a specific area in the Philippines for its next water project, but the provinces and cities surrounding Davao City would be ideal.

“But the reality is we’re looking in the Visayas, we’re looking in Luzon, sa tingin ko (in my view) wherever the opportunity comes because I really think the issue is there’s demand across the Philippines,” he said.

For the Apo Agua loan facility, the consortium of lender-banks is composed of BPI Capital Corp. as mandated lead arranger and bookrunner; China Bank Capital Corp. as join lead arranger; Bank of the Philippine Island, China Banking Corp., Development Bank of the Philippines, and Bank of Commerce as initial note holders; and BPI Asset Management and Trust Corp. as trustee and notes facility agent.

AEV has partnered with JV Angeles Construction Corp. for the bulk water project as it builds expertise in the water sector.

“We’ve been doing hydro-electric projects for many years. So we have some expertise in managing the distribution of water, building the pipes. But we don’t have the construction expertise, that’s where JV Angeles comes along,” Mr. Lozano said.

source: https://www.bworldonline.com/aev-subsidi...r-project/
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OUTLIER: Aboitiz Equity Ventures

ABOITIZ EQUITY Ventures, Inc. (AEV) was one of the most actively traded stocks last week following its buyback program and the death of its chairman.

AEV was the seventh most traded stock in terms of value turnover last week. A total of P1.83 billion worth of 34.92 million shares exchanged hands on the trading floor from Dec.3 to Dec.7, data from the Philippine Stock Exchange showed.

Shares closed at P50.30 apiece on Friday, down P2.45 or 4.64% from the previous day. It was also lower by 3.64% than its closing price on Nov. 29. For the year, AEV shares shed 32.48%.

“I believe the main factor why it was among the actively traded stocks [last] week was due to the passing of Chairman Jon Ramon Aboitiz last Nov. 30, 2018,” said Unicapital Securities, Inc. (Unicap) certified securities representative Cristopher Adrian T. San Pedro.

“According to empirical studies, investors in recent years normally react sharply to unexpected deaths of its long-term company leaders therefore creating a volume spike,” he added.

For his part, Regina Capital Development Corp. Managing Director Luis A. Limlingan said: “Some crosses were made by brokers worth several hundred million pesos, which drove value turnover.”

“Also there was an announcement of a buy back which got funds interested,” he added.

In a disclosure to the stock exchange, AEV said that its chairman, Jon Ramon M. Aboitiz, passed away on Nov. 30 due to a “lingering illness.” Mr. Aboitiz was also the chairman of Aboitiz & Co., Inc. and chairman and chief executive officer of Ramon Aboitiz Foundation, Inc.

AEV said in a Nov. 23 disclosure that its board of directors renewed its share buyback program, which will use internally generated excess cash.

The Board also renewed the firm’s authority to purchase additional shares on Aboitiz Power Corp. (AP) and Union Bank of the Philippines (UnionBank).

AEV’s disclosure last Nov. 29 provided information on the total amount appropriated for the buy-back program.

“No specific limit has been imposed, although the amount used for any repurchase (i) must be within the delegated financial authority limits of the Chief Executive Officer and the Chief Financial Officer and (ii) has to be from the Company’s internally generated excess cash,” the disclosure read.

Also last week, Apo Agua Infrastructura, Inc., the listed company’s subsidiary, said it tapped a consortium of lender banks for a P9 billion loan to finance its bulk waterproject and 2.5-MW hydro-electric power plant.

“Expansion wise, the 2.5-MW (megawatt) [hydro-electric] plant will add to AP’s renewable energy portfolio. Financing wise, the P9 billion will be added to their almost P295.6 billion parent-level debt,” said King A. de Mesa research analyst at Unicapital Securities, Inc.

“Cash-flows wise, I think they can service their debt given their cash-generating ability (coming and will be coming from AP mostly since their major plant additions will be up and running in the next 2-3 years),” Mr. De Mesa added.

Meanwhile, the company’s consolidated net income grew 38.51% to P10.41 billion in the third quarter. Net income attributable to the equity holders of the parent company stood at P7.23 billion, up 28.36% from the P5.63 billion posted a year ago.

For the first nine months of the year, net income attributable to equity holders of the parent reached P17.318 billion, up 8.89% year on year.

For this year, Unicap’s Mr. De Mesa said AboitizPower and UnionBank would drive the company’s performance this year.

On the other hand, Mr. Limlingan said the company could take in P22.4 billion in net income.

“Since most of AEV is tied to AP, the changes in power rates or the outlook in the energy industry could affect this. The second biggest contributor, UnionBank, will also be influenced by the rate hikes, which in turn will affect the loan growth and trading,” Mr. Limlingan said.

He pegged the stock’s support and resistance at P48.50 and P53.00, respectively.

Meanwhile, Unicap’s Mr. San Pedro gave the stock support and resistance prices at P49.50 and P56.75.

source: https://www.bworldonline.com/aboitiz-equity-ventures/
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Sabin Aboitiz to take helm at AEV in 2020

ABOITIZ Equity Ventures, Inc. (AEV) President and Chief Executive Officer Erramon I. Aboitiz will step down from his post in January 2020, to be replaced by his brother and incumbent chief operating officer Sabin M. Aboitiz.

In a disclosure to the stock exchange on Wednesday, the conglomerate said the older Aboitiz will retire on Jan. 1, 2020. He has held the position since 2009, prior to which he served as the company’s chief operating officer.

Sabin Aboitiz is currently the president of AEV’s infrastructure unit, AEV Infra Capital, Inc. and president and CEO of Pilmico Foods Corp., AEV’s flour milling unit.

“A significant factor in our Group’s success over the past 100 years has been one of seamless succession and transition to the next generation of leaders, ensuring the continuity as well as the evolution of our culture, our policies, and how we do business,” Erramon Aboitiz said in a statement.

AEV also announced that Vice Chairman Enrique M. Aboitiz will now take on the role of chairman, following the death of Jon Ramon M. Aboitiz last November.

Meanwhile, AEV Director Mikel A. Aboitiz will assume the post of vice chairman, effective immediately.

The company also appointed Ana Maria A. Delgado as director to fill the remaining term of the late chairman. The 38-year-old executive is currently a senior vice-president, center head of consumer finance, and chief customer experience officer of Union Bank of the Philippines.

Ms. Delgado is part of the fifth generation of the Aboitiz family, most of whom are also being groomed to take on key leadership positions in AEV in the future.

Included in the company’s reorganization program is the appointment of Ricardo F. Lacson as the company’s data privacy officer effective on Feb. 1, 2019. Mr. Lacson is currently a vice- president for strategy at AEV, and was previously the vice-president for administration and customer services at the Visayas Electric Company.

The Aboitiz group of companies was founded in Cebu in the late 1800s as an abaca trading and general merchandise business. It has since diversified its core businesses to power generation, distribution and retail electricity supply, financial services, food manufacturing, real estate, infrastructure, and portfolio investments.

AEV’s subsidiaries include Aboitiz Power Corp., Union Bank, Pilmico, Aboitiz Land, Inc. and Aboitiz InfraCapital.

AEV saw its attributable profit rise by 28% to P7.23 billion in the third quarter of 2018, as revenues jumped by 30% to P51.88 billion.

This pushed AEV’s nine-month net income attributable to the parent to P17.32 billion, nine percent higher than the P15.90 billion it posted in the same period a year ago. This followed a 21% increase in revenues to P135.25 billion.

source: https://www.bworldonline.com/sabin-aboit...v-in-2020/
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