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/


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/


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/


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/


...just build it guys Tongue

Aboitiz unit revises unsolicited proposal for Laguindingan airport

THE Department of Transportation (DoTr) said Aboitiz InfraCapital, Inc. (AIC) has submitted a revised unsolicited proposal for the development of the Laguindingan Airport.

Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. told BusinessWorld in a text message on Tuesday it received a revised submission of the P42.7-billion proposal from AIC to operate, maintain and expand the Laguindingan Airport. The original proposal was submitted in August.

“Revised submission (given on) Dec. 18, 2018,” he said, noting the revised proposal will be reviewed.

“They have nominated technical partners but I don’t remember. It can change though,” Mr. Reinoso added.

AIC earlier submitted a P148-billion bundled proposal to modernize four key regional airports, namely the Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and New Bohol (Panglao) International Airport.

When it announced the plans in March, AIC said it wants to “transform the facilities into world-class airports every Filipino deserves and can be proud of.”

But the bundled proposal was rejected by the DoTr in April, requiring interested private entities to submit separate proposals for airport projects.

In September, AIC received original proponent status (OPS) for the operations, maintenance and expansion of the New Bohol (Panglao) International Airport.

It was able to beat Chelsea Logistics Holdings Corp. (CLC), which also gave an unsolicited proposal for the Panglao Airport and Davao International Airport. The Dennis A. Uy-led company had been granted OPS for its Davao airport proposal last October.

Aside from proposals for Panglao and Laguindingan airports, AIC is also part of the consortium that was given OPS to rehabilitate the Ninoy Aquino International Airport (NAIA). The consortium also includes AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc. and Metro Pacific Investments Corp.

After getting OPS, airport proposals will have to go through the National Economic Development Authority (NEDA) for evaluation, and then subjected to Swiss challenge where third party companies could contest the original proponent.

source: https://www.bworldonline.com/aboitiz-uni...n-airport/

Naka abang ako dito sa 51


AEV allots up to P60-billion capex for 2019

ABOITIZ EQUITY Ventures, Inc. (AEV) is looking to allocate up to P60 billion to fund the expansion of its power, food, banking, land, and infrastructure businesses in 2019.

“We haven’t finalized yet…but (2019 capital expenditures) would probably be in the range of P50 to P60 billion,” AEV Chief Financial Officer Manuel R. Lozano said during a round table interview in Taguig City last week.

The 2019 capex is lower than the P77 billion AEV has committed to spend in 2018. Mr. Lozano noted the company has only spent about three-fourths of this budget, since some projects have spilled over to 2019.

“(The) bulk (of capex) will be for power, but now we already have Apo Agua for water, that’s gonna be big also. (AboitizLand) has several projects that we started. So I think now you’re going to see a little bit more from the other subsidiaries,” Mr. Lozano said.

Apo Agua is AEV’s bulk water project in Davao City worth about P13-14 billion. It was designed to have a capacity of 347 million liters per day, making it the largest bulk water project in the country. The facility also comes with a 2.5-megawatt hydro-electric power plant.

The bulk water project is scheduled to start operations in 2021.

For its power unit, AEV is looking at more renewable energy projects at the local front while also exploring opportunities abroad.

“We really want to look at more projects in the solar side. There’s a lot of opportunities there. We’re bringing guys who understand hydro, solar, and wind… at least get them moving in 2019,” Mr. Lozano said.

The AEV executive also said the company is upbeat on potential projects in Indonesia, Vietnam, Malaysia, and Myanmar.

“In Vietnam, they have a lot of solar, wind projects that we’re looking at. And Indonesia all kinds, from geothermal, to solar, to hydro, so we’d like to see where we can do things.”

Meanwhile, AboitizLand, Inc. also has some projects lined for its nationwide expansion in 2019. Mr. Lozano said the property developer is looking at new township developments in Cebu and Davao, alongside some land banking efforts.

AboitizLand has recently opened The Outlets at Lipa, a 9.3-hectare commercial, lifestyle, and leisure development in Batangas. The property opened with 25% of its total gross leasable area of about 27,000 square meters leased out, with more to tenants to expected to locate there in the first quarter of 2019.

To finance its 2019 capex, Mr. Lozano said they are planning to file a shelf registration for about P30 billion worth of retail bonds at the Securities and Exchange Commission.

“Our plan is to do a shelf, get it already started next year, and then depending on our investments we can either do a bigger offering later in the year or in 2020… The shelf lasts for three years, so I think P10 billion a year on average is not unreasonable especially since we’re still growing a lot of our business,” Mr. Lozano said.

AEV is also expected to close a $579-million (around P30.6 billion) loan from several banks by the first quarter of 2019. This will finance its acquisition of GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co. from the Ayala group.

“But we’re going to hedge some of it. We’re trying to match it with the cash flows from the company as well. It’s a dollar borrowing, the only question is how much do we hedge to peso,” Mr. Lozano said.

AEV booked a net income of P17.3 billion in the first nine months of 2018, nine percent higher year-on-year, on the back of a 21% uptick in gross revenues to P135.25 billion.

source: https://www.bworldonline.com/aev-allots-...-for-2019/
Naka abang pa din ako dito sa 51

Aboitiz property unit plans to launch projects in Pampanga, Davao

ABOITIZLAND, Inc. is expanding its mid-market residential brand Ajoya in Pampanga and Davao City next year.

John A. Amon, AboitizLand vice-president for customer acquisition and innovation, said the company is launching new Ajoya communities in Acacia, Buhangin in Davao City and in Suclaban, Pampanga by the second quarter of 2019. The company is planning to launch a total of 400 units.

Mr. Amon told BusinessWorld via e-mail that the company is allocating a capital expenditure of P1.4 billion for the Davao project, and P2.7 billion for the Pampanga project.

This is part of the P7.5-billion capex the company has allotted for four Ajoya projects, including existing ones in Nueva Ecija and Tarlac.

AboitizLand expects P550 million in sales from the Davao development, and P450 million in sales from the Pampanga development.

Mr. Amon said the Ajoya brand generally targets professionals with families.

“The advancing professionals and their families live in the same house their parents gave them. With a growing family, they are beginning to feel the need for some improvements. They dream of a home that offers more than the usual — a home with a fresh and unique living experience, one that allows lasting connections and a truly enjoyable environment,” he said.

Mr. Amon said the Ajoya projects also cater the employees of business process outsourcing (BPO) companies, overseas Filipino workers (OFW) families, and the local residents.

The Ajoya brand is currently present in Cabanatuan, Nueva Ecija, and Capas, Tarlac. Both projects were launched in September 2018.

Ajoya Cabanatuan is a 19-hectare development in Barangay Valle Cruz with units ranging from 60 square meters (sq.m.) to 75 sq.m., and are priced between P3 million to P4.7 million.

On the other hand, the 13-hectare Ajoya Capas in Barangays Talaga and Estrada offers units ranging from 45 sq.m. to 60 sq.m., and are priced from P1.8 million to P2.5 million.

The Cebu-based property firm launched Seafront Residences in San Juan, Batangas in 2017.

source: https://www.bworldonline.com/aboitiz-pro...nga-davao/


Aboitiz bullish on Southeast Asia market

ABOITIZ Equity Ventures, Inc. (AEV) sees the Southeast Asian market contributing to a significant part of its earnings in the following years, as it pursues more investments that will help sustain its growth momentum.

AEV Chief Executive Officer Erramon I. Aboitiz said the group would have to look for more growth opportunities abroad since they are growing faster than the Philippine economy and the industries where they are present.

“Projecting ourselves moving forward, we think that it’s important that we start establishing a foothold in some of these countries. Because there will come a time that for us to sustain our growth we cannot rely on just the local market, and that’s really what we’re preparing ourselves for,” Mr. Aboitiz told BusinessWorld in a recent interview.

AEV’s international business currently accounts for about two to three percent of its net profit, mostly from the food group. Mr. Aboitiz said they have yet to plot an actual target on how much they want this segment to contribute in the coming years.

“If we can get contributions from the ASEAN (Association of Southeast Asian Nations) market to 15-20% of our income (in the next 10 years), I think we will have done one hell of a job,” Mr. Aboitiz said.

AEV’s power unit, Aboitiz Power Corp., announced back in 2015 that it will be spending $500 million in a span of five years to finance its expansion in the Southeast Asian region. This also supports the company’s goal of having 4,000 megawatts under its portfolio by 2020.

While AboitizPower has identified Myanmar, Indonesia, and Vietnam as its areas for expansion, Mr. Aboitiz noted that their efforts are actually focused on Vietnam because of its similarity with the Philippine market.

The company is looking for deals with local partners who have either started the project already and are looking for partners to come in, or firms that need help in executing projects they already have.

“(We have) some solar projects, wind projects, a lot in the renewable space, because Vietnam has implemented something similar to FIT or the feed-in tariff. So these are going to be opportunities for us,” Mr. Aboitiz said.

Meanwhile, Mr. Aboitiz noted that AEV’s food business through Pilmico Foods Corp. has been the “more successful” unit abroad, having managed to acquire several businesses in previous years.

Pilmico’s latest and largest acquisition to date is Asia-Pacific animal feeds manufacturer Gold Coin Management Holdings, Ltd. The company is present in 11 countries in Asia with 20 production facilities, and has an employee base of more than 3,000 people.

“We’re very happy with that. We think this acquisition and the fact that we have a presence now in so many different countries will not only help the food group but the Aboitiz group,” Mr. Aboitiz said, explaining that this will help them better understand the markets and the opportunities they offer.

The group is investing up to $200 million to further expand Gold Coin’s business. This will be funded by borrowings or internally generated cash.

AEV booked a net income attributable to the parent of P17.32 billion in the first nine months of 2018, nine percent higher year-on-year, driven by a 21% growth in gross revenues to P135.25 billion.

source: https://www.bworldonline.com/aboitiz-bul...ia-market/


Aboitiz set to sign MoU with DICT for common towers

ABOITIZ InfraCapital, Inc. is joining the government’s initiative to welcome providers of telecommunications infrastructure as it scheduled to sign a memorandum of understanding (MoU) with the Department of Information and Communications Technology (DICT) today.

Jose Emmanuel “Jimbo” F. Reverente of Aboitiz InfraCapital confirmed the company’s plans in a mobile message on Wednesday.

“Yes we’re signing,” he said, noting the details of the plan would largely rely on the telcos it would get to request for a common tower.

This makes Aboitiz InfraCapital the seventh common tower provider to sign an MoU with the DICT, the others being ISOC Infrastructures, Inc.; ISON ECP Tower Pte. Ltd.; IHS Holding Ltd. (IHS Towers); edotco Group Sdn Bhd; China Energy Equipment Co. Ltd. and RT Telecom Sdn Bhd.

With the MoU, the common tower providers are guaranteed the DICT’s assistance in securing permits to install telco infrastructure once they get orders from the companies.

DICT Acting Secretary Eliseo M. Rio, Jr. had earlier said bureaucratic hurdles are common problems experienced in rolling out towers, particularly the number of permits required.

The government is keen on encouraging tower providers to take over the installation of cell sites that may be used by more than one telco, contrary to the current practice of PLDT, Inc. and Globe Telecom, Inc. where they build their own solo-use towers.

The DICT says there is a need for at least 50,000 towers on top of the less than 20,000 towers currently in place. which Mr. Rio says is “the smallest number of towers considering its land area and population compared to other countries in the region.”

Both PLDT and Globe are open to signing deals with tower companies.

source: https://www.bworldonline.com/aboitiz-set...on-towers/


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