BIZ BUZZ: ALABANG COUNTRY CLUB STANDOFF
Alabang Country Club Inc. (ACCI) is caught between the proverbial devil and the deep blue sea due to a controversial tournament that resulted in the temporary closure of the golf course and created tension among members. The punishment meted out by the board is either too little or too much, depending on who’s talking.
Alabang Club 515 Golfers Association Inc. (Club 515)—a group of golfers whose tournament at end-august caught the ire of the Department of the Interior and Local Government (DILG) and the Inter-agency Task Force for the Management of Emerging Infectious Diseases (IATF)—IS protesting the 45day suspension meted out on eight of its members, including two directors who are also ACCI members.
In a letter sent to the ACCI board, Club 515 general counsel Felisberto Verano Jr. rejected the suspension orders, saying these were “contrary to the accepted legal actions as provided by law and fair play.”
“While we do not wish to go into an inevitable legal confrontation with your board, we will not hesitate to protect our rights and to inform the ACCI Club Members of the oppressive and high-handed acts against our beloved 515 Club,” he added.
On the other hand, a petition is also circulating among other displaced members who lamented that the penalty was “too mild” considering the “unprecedented” inconvenience heaped upon them and the caddies.
They said it’s only “fair and just” to suspend the organizers of the Club 515 tournament not just for 45 days, but for one year. They also sought the 60day suspension of all participants in the tournament.
They said the economic cost of the temporary closure of the golf course should be between P170,000 and P237,050 per day, including about P45,000 income lost by the caddies.
“This can be a proxy for the inconvenience and dissatisfaction this lockout of sorts is causing us members of the club who are marginalized from the golf course because of the actions of Club 515,” their petition read.
Club 515 already sent a letter to Muntinlupa Mayor Jaime Fresnedi apologizing for the “hosting of the tournament last Aug. 28 to Aug. 29, 2020” and declaring willingness to cooperate in expediting the investigation.
The club said it was never its intention to violate the mandates of the IATF and the City of Muntinlupa on COVID-19 social distancing requirements.
The reopening of the golf course is now in the hands of the DILG and the IATF. —DORIS DUMLAO-ABADILLA
Converge joins big leagues
Broadband company Converge ICT Solutions Inc. is wrapping up the local leg of an initial public offering (IPO) that could raise as much as P29 billion.
So far, anecdotal evidence indicates that domestic demand is lukewarm relative to its international offer, which was about two times oversubscribed.
The reservation here is linked to value, in particular how Converge was priced relative to its regional peers. This is not to mention prevailing market conditions, with other big names in the Philippines now at an attractive discount due to COVID-19.
These are valid points and something investors should consider before diving in with their hard-earned money.
Of course, Converge founders Dennis Anthony H. Uy and spouse Maria Grace Uy probably have their own views about its value, considering the vast opportunity they see in the growing fiber internet sector. It’s a business they built from the ground up and where Converge eventually became a pioneer in its own right.
There is a lot of pride attached to the company, which started as a small cable TV operator in Pampanga province and now a major broadband player attracting the likes of global investors thousands of miles away.
Many wonder about the timing of the IPO.
There was that huge bump in demand and profits during the pandemic but there’s another reason. The public offering was inevitable since its legislative franchise requires a listing by 2022.
For many reasons, Converge does things differently from its competitors. It keeps activities such as repairs and laying of cables “in-house” where rivals tend to outsource.
One of its subsidiaries is called Metroworks and the company’s secret sauce is in laying down its network using less disruptive technologies such as microtrenching.
Because it’s focused on this single business, it allows the company to control quality and cost.
Lately, Converge was prompted to outsource in terms of customer service. This was necessary as demand (and complaints) rose as growth surged during the pandemic.
Unlike the incumbent telcos, Converge is purely focused on fixed internet—the kind you would get for a home, office or even a building.
It’s a smaller market than the immense wireless business, but customers here have more money to spend. In this small slice, Converge has managed to capture a controlling share and its owners feel things are just getting started.
After all, unserved demand for fixed broadband in 2019 was at $4.2 billion and it should reach $6.9 billion in revenues by 2025. There is a lot of catching up to do, evenfor other players. Whomight prevail in that race is a judgment call investors must make.
Despite its huge growth, it’s clear Converge’s story is still unfolding. And no matter what happens, a major IPO in the middle of a historic health crisis is not a tale everyone can tell.