Biz Buzz: The first to speak up

Makati Business Club (MBC) has sided with press freedom in a rather bold statement last week, being the first business group to speak up on an issue that could only get worse with silence.

MBC warned in a statement last week that the arrest of veteran reporter and Rappler chief

Maria Ressa could send a chilling effect to other journalists.

“This and previous actions taken against Ms. Ressa and her organization could send a message to other journalists that only favorable reporting of the government will be tolerated,” it also said.

The statement marked the first time MBC has spoken up about the issue of press freedom under the Duterte administration, a topic that other business groups have not actively touched on.

While Rappler was not the only media outfit caught in the government’s crosshairs over the past few years (this paper bleeds, too), Ressa’s arrest earlier this month is the most recent attack on press freedom yet.

The arrest links to a cyber libel case filed because of a Rappler story published in 2012, months before the cybercrime prevention law took effect.

Authorities claimed that a case against Rappler could still be pursued since the article was updated in 2014. Rappler, for its part, said it was not even substantially modified, noting the update included correcting a misspelled word.

“Especially while there are questions about whether the law is applicable, we believe the authorities should err on the side of the freedom of the press that is a bedrock of all our rights and liberty,” MBC said.

“A brave and free press is an ally in the fight against corruption that we and the government espouse in order to encourage investment badly needed to generate employment and wealth creation that is truly inclusive,” it added.

Will other business groups follow suit? We really can’t tell. Maybe they don’t feel the need to involve themselves. Maybe they’re afraid of the backlash.

One thing’s for sure though. It took guts for MBC to go out of its way and speak up. It could have just been business as usual. But not for MBC. It even almost felt personal. —ROY STEPHEN C. CANIVEL

FB’s new share sale?

Is consumer powerhouse San Miguel Food and Beverage (FB) returning to the equities market anytime soon?

This seems to be the expectation of some stock pundits, who believe that parent conglomerate San Miguel Corp. (SMC) may find it attractive to offer to the market additional shares in FB now that foreign flows have returned to emerging markets, FB’s earnings are likely to break records and it has recently been included in closely tracked FTSE indices.

Furthermore, FB is now trading at P104 a share compared to the offering price of P85 each when the company embarked on a follow-on offering to comply with minimum public float requirement.

As we recall, last year was a challenging period for the stock market as local inflation woes spooked investors alongside US Federal Reserve and trade war jitters on the external front.

FB had planned to sell 1.02 billion shares—consisting of a base size of 887 million shares and an overallotment option of 133.05 million shares—but sold only 400.94 million amid bearish market conditions. Nonetheless, SMC was able to raise P34 billion from the sale of its shares in FB.

Some dealers pointed out that SMC would have until May 6 this year to sell additional shares under the same prospectus but on an improved price now that there’s greater demand especially from the foreign market. During last year’s untimely share sale, foreigners accounted for but a small piece of the pie.

Asked by Biz Buzz whether a new FB follow-on offering is in the works, SMC president

Ramon Ang said “maybe in the future.” Asked further whether this could be possible sometime this year, Ang said it might happen in the “next few years.” —DORIS DUMLAO-ABADILLA

‘Rigodon’

Last week’s Palace announcement of the appointments of

Cecilia Borromeo and Emmanuel Herbosa to the Landbank and DBP boards, respectively, confirmed Biz Buzz’s earlier reports that these two bank executives will later on be put at the helm of the two state-run lenders.

Borromeo—who had worked her way up at Landbank before assuming the DBP president post—is said to return to her old office along Manila Bay by March 1, although Finance Secretary Car

los Dominguez III said it would be “probably at a later date.”

Herbosa, meanwhile, will have to leave Philippine Guarantee Corp. to head DBP.

What will happen to Landbank president and CEO Alex Buenaventura? The guy had said he would return to Davao (thanks to the constant egging of his wife to go back home), although rumors said Buenaventura might be appointed to the UCPB board.

But Buenaventura told Biz Buzz: “I rejected the appointment to UCPB board. Going home to Davao is more relaxing than being in the UCPB board.”

Dominguez, who chairs Landbank, said the reshuffling among the two GFIs’ heads was aimed at improving services to the public.

Asked if he was unsatisfied with the two lenders’ performance so far, Dominguez replied: “Landbank could do better.” —BEN O. DE VERA

POPI to ALL

Prime Orion Philippines Inc. (POPI), the industrial estate arm of the Ayala group, is set to rename itself Ayalaland Logistics Holdings Corp. (ALL) to reflect its business transformation from a retail hub to an industrial park developer and operator.

This will change POPI’s ticker at the local stock market to ALL once the corporate name change takes effect. This will require an amendment to its articles of incorporation and bylaws, which will be submitted for shareholders’ approval during their meeting on April 12.

Valued by the stock market at around P14.8 billion, POPI is the only industrial park play in the market to date. The Ayala group is among those advocating for the country’s manufacturing renaissance. —DORIS DUMLAO-ABADILLA INQ