Biz Buzz: Waiver ... but not wavering

First Philippine Holdings Corp. (FPH) failed to reach the critical mass targeted for its tender offer for shares of parent conglomerate Lopez Holdings Corp. (LPZ) to proceed. Nonetheless, FPH has decided to waive the minimum tender offer requirement, which means it will still proceed with the acquisition of all tendered shares.

Based on an initial count, a total of 712.43 million common shares, or 15.68 percent, of the issued and outstanding shares of LPZ were offered for sale to FPH—less than the 20 percent minimum threshold—as the offer period ended on March 8. Validation is still ongoing and the final count will be part of the final tender offer report.

Ahead of the final count, however, FPH decided to accept all the validly tendered shares. This will make it easier for FPH to consolidate shares as intended, even if it could no longer proceed with its plan to delist LPZ for now.

To recall, LPZ earlier officially withdrew its petition for voluntary delisting from the Philippine Stock Exchange (PSE) following the amendment of FPH’s tender offer terms that removed the risk of LPZ falling below the minimum public ownership. FPH’s tender offer for LPZ shares had been amended to target a lower number of shares than previously envisioned, thereby removing the pressure that some shareholders of LPZ may have felt from the previously stated delisting plan.

The tender offer price of P3.85 per common share was deemed by advisor KPMG/R.G. Manabat & Co. as “fair and reasonable” from a financial point of view.

Earlier, the PSE informed the Lopez group that LPZ would already be covered by new rules if it were to pursue voluntary delisting. The new delisting rules require approval by at least twothirds of the entire membership of the corporate issuer’s board, including the majority, but not less than two, of all of its independent directors. Further, the number of votes cast against the delisting proposal should not be more than 10 percent of the total outstanding and listed shares of the listed company. —DORIS DUMLAO-ABADILLA

Fintech wars

The financial technology sector is heating up and PayMaya, backed by PLDT Inc. and global investors such as China’s Tencent Holdings and KKR, is readying its own war chest against equally aggressive rivals. In fact, the company is prepared to expand rapidly this year and potentially incur more losses as a result.

PLDT chair and CEO Manuel Pangilinan said the mandate given to PayMaya was to basically “push our foot on the pedal” in 2021.

These plans don’t come cheap and Pangilinan said PayMaya’s parent firm Voyager Innovations could raise another $120 to $130 million. The successful execution of these plans, of course, comes as PayMaya eyes breaking even by 2023 and posting profits the following year.

Pangilinan indicated that existing shareholders of Voyager remain supportive but it would be interesting to see if they can bring in new names to the mix. The fintech space is growing rapidly and so are the players, both established and emerging companies.

Among these, Pangilinan recognized GCash—backed by main rival Globe Telecom and China’s Jack Ma—as a formidable competitor.

We expect increased competition but also more innovative products as these companies seek to reshape transactions across the country. —MIGUEL R. CAMUS

Street dining

With increasing preference for al fresco dining across the globe amid the prolonged coronavirus pandemic, local shopping mall developers and their restaurant-tenants are increasingly making street dining options available in the metropolis, even if it’s just during the weekends or limited days.

For instance, outdoor dining under the Makati Street Meet initiative has been revived on Rada and Leviste Streets in Legaspi and Salcedo Village, respectively, closing both streets to traffic on Valentine’s Day and on Feb. 28—while complying with the city’s health and safety protocols. Circuit Makati, on the other hand, hosted the Riverside Sessions—dining by the riverside, musical performances by a violinist and a saxophonist, and on-the-spot sessions with a caricaturist.

In BGC, under the My Street High Street program, portions of 5th Avenue go car-free every Saturday and Sunday to encourage al fresco dining and other outdoor activities. Fresh vegetables and produce from displaced farmers of the Benguet Collective are also made available on weekends. This initiative not only aims to support social enterprises that were severely hit by the pandemic, but also offer affordable goods to the BGC community.

These events—an initiative of Ayala Land, Make It Makati, and Makati Central Estate Association Inc.—will now be done regularly, in response to the clamor of both restaurant owners and customers, said Christine Roa, Ayala Land head of marketing and communications.

The next runs of Makati Street Meet will happen on March 14, April 4, April 18, May 2, May 16, June 13 and June 27. Riverside Sessions at Circuit Makati will happen on March 14, April 18, May 16 and June 27.

Ayala Land has been implementing road closures in Makati and Bonifacio Global City to promote safe outdoor community events. Its other estates like Nuvali, Vermosa and Vertis North also feature big open spaces and pockets of green for such purpose.

The Makati Street Meet was held every month for three years at its original venue along Paseo de Roxas until the pandemic closed it down last year. But with the gradual easing of health and safety restrictions this year, it is being revived with a new format and purpose—to help resuscitate the ailing restaurant industry.

Aside from bringing the community together, these initiatives also provided a venue for startup businesses to market their products and services. More than 30 restaurants and food providers have so far participated in these efforts to promote outdoor activities.

At the Rockwell area, al fresco dining has been made available during weekends since late last year. For the whole of March, street dining is open every day while live performances are set every Saturday.

It’s great to know that the restaurant industry, one of the most battered during this pandemic, is fighting back, regaining ground and adapting to consumers’ changing preference. Foot traffic in malls is still less than half of prepandemic levels, but with the rollout of vaccines nationwide, consumers are seen to gradually regain confidence. —DORIS DUMLAO-ABADILLA INQ