Connect with us

Hi, what are you looking for?

BREAKING NEWS

Tycoon close to outgoing Philippine president mulls sales of big assets — sources

A tycoon and close associate of outgoing President Rodrigo R. Duterte is considering selling businesses collectively worth several billion dollars, including a South China Sea gas field and a commercial land lease firm at the site of a former US military base, two sources familiar with the matter said on Thursday. 

Dennis A. Uy, chairman of conglomerate Udenna Corp. and listed Chelsea Logistics, has seen rapid growth and diversification of his business empire during the six-year presidency of Mr. Duterte, who leaves office next month. 

The assets he is considering selling are the Malampaya gas field, which Mr. Uy had acquired from Chevron and Shell for approximately $1 billion, and Clark Global City, which also cost $1 billion, the sources told Reuters, declining to be identified as they were not authorized to speak to media. 

They said buyers had been looking at prospects for some of Mr. Uy’s other businesses, including oil retailer Phoenix Petroleum and his new telecom firm DITO, plus schools and food businesses he operates. 

It was not immediately clear why Mr. Uy, the top campaign contributor of Mr. Duterte in his 2016 presidential run, was putting the assets up for sale. His representatives did not immediately respond to requests for comment. 

Mr. Uy, 48, is one of the Philippines’ leading entrepreneurs, whose appetite for risk and acquisitions saw him build the bulk of his empire in just a few years. 

Udenna Corp. nearly quadrupled its portfolio to more than 100 firms in the first four years of the Duterte presidency, in sectors from gaming, shipping, education and construction to fast food, ferries, tourism, telecoms and sports cars. 

The company has long insisted it received no preferential treatment under Mr. Duterte and all businesses and contracts were acquired fairly. 

Mr. Duterte will make way for Ferdinand “Bongbong” R. Marcos, Jr., the son of the notorious dictator, who won a presidential election by a landslide on Monday. 

ANNOUNCEMENT ‘IMMINENT’ 

Included in the preferred bidders for deals for Malampaya and Clark Gateway — the developer and landlord of a 177-hectare (437.4-acre) business district near Clark international airport — is billionaire Enrique K. Razon, Jr., one of the sources said. 

The transactions have been in the works for “some months already,” the source said, adding “an announcement looks imminent.” 

Mr. Razon, Philippines’ third richest man with a net worth of $5.8 billion based on a Forbes ranking, did not immediately respond to a request for comment. 

His Bloomberry Resorts announced on Wednesday it had signed a deal to invest in Mr. Uy’s integrated casino-resort projects in Clark and the central province of Cebu. 

The Malampaya gas field fuels power plants that deliver about a fifth of the Philippines’ electricity requirements. In December Mr. Uy’s Udenna said Malampaya may operate for several more years beyond its projected 2027 project life. 

The proposed assets sales come after the pandemic decimated the profitability of many of Uy’s businesses. 

Udenna’s total liabilities rose by nearly half to P254 billion ($4.85 billion) in 2020 from P171 billion in 2019, latest available data from the corporate regulator showed. — Reuters

You May Also Like

BREAKING NEWS

THE Securities and Exchange Commission (SEC) said it received on Wednesday the registration statement of SM Investments Corp. (SMIC) for a P15-billion fixed-rate bond...

BREAKING NEWS

BW FILE PHOTO THE CENTRAL BANK wants lenders to keep a close eye on environmental and social (E&S) risks in their credit exposure, in...

TOP NEWS

OCEANAGOLD.COM CANADIAN-AUSTRALIAN mining firm OceanaGold Corp. said it started mineral processing at its Didipio gold and copper mine project in Nueva Vizcaya and Quirino...

BREAKING NEWS

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: PoliticalInvestorsDaily.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 PoliticalInvestorsDaily. All Rights Reserved.