Month: December 2012

Ayala Corporation announced today that it entered into a sale and purchase agreement to acquire 100% of the interests held by an affiliate of a fund advised by Denham Capital in GNPower Mariveles Coal Plant Ltd. Co. (GMCP). GMCP is the owner of the 2 x 300-MW coal-fired power generating plant in Mariveles, Bataan province.

Pursuant to such agreement and subject to lenders’ consent and other customary closing conditions, Ayala has agreed to acquire ownership interests of approximately 17.1% in GMCP and its Mariveles Power Plant for a total purchase price of approximately US$155.0 million. The Mariveles Power Plant is currently undergoing commissioning. The other sponsors of the Mariveles Power Plant are power project developer Power Partners, Ltd. Co. and Sithe Global Power LLC, a company owned by investors of The Blackstone Group. Ayala intends to hold its investment in GMCP through its wholly owned energy subsidiary, AC Energy Holdings, Inc.

According to John Eric T. Francia, Ayala managing director and AC Energy president, “The Mariveles Power Plant is a major capacity addition that is critical to alleviating potential power shortages in the Luzon grid. It is utilizing pulverized coal technology designed to meet global standards and contributes to Ayala’s goal of providing low-cost electricity to the country.”

Ayala president and COO Fernando Zobel de Ayala, for his part, said, “We are pleased with the addition of the Mariveles Power Plant to Ayala’s growing portfolio of energy projects. We are delighted to be working with Sithe Global Power and Power Partners in this endeavor. Our investment reflects the Ayala group’s support for the energy and infrastructure needs of our country and our confidence in its bright growth prospects.”

J. P. Morgan served as financial advisor to Ayala on this transaction.

At a meeting held today, December 12, 2012, the Board of Directors of Bank of the Philippine Islands (BPI) approved a succession plan recommended by its Nomination Committee and Personnel and Compensation Committee. Cezar P. Consing will be nominated to succeed Aurelio R. Montinola III as President and CEO at the next organizational meeting of the Board immediately following the stockholders’ meeting scheduled on April 18, 2013. This movement is in line with the traditional retirement practices in BPI and forms part of the normal succession process.

Consing has over 25 years of experience in international finance, particularly in investment banking, commercial banking, and private equity. He has led large groups of highly qualified finance professionals and has managed and grown complex businesses in highly competitive environments. He has also been directly involved in several significant financial transactions in Asia and in the Philippines.

Consing’s involvement with Bank of the Philippine Islands started in 1981 when he became the youngest management trainee in the corporate planning department and later moved to corporate banking, where he eventually headed the Conglomerate and Multinational Coverage team. He was appointed Assistant Vice President in corporate banking in 1985. He then joined J.P. Morgan & Co. as a transferee from BPI and built a 20-year career in investment banking while based in Hong Kong and Singapore, the last seven years of which as head or co-head of investment banking for Asia Pacific between 1997 and 2004. From 2001, he was president of J.P. Morgan Securities (Asia Pacific) Ltd. and had overall responsibility for the combined Asian investment banking businesses of J.P. Morgan, Chase Manhattan, and Jardine Fleming.

At the board level, Consing represented J.P. Morgan on the Boards of Directors of BPI and BPI Capital in 1995 to 2000. He rejoined the BPI Board as an independent director from 2004 to 2007, and then again, in 2010, where he currently serves as an independent director and a member of its personnel and risk management committee.

Since 2004, Consing has been a partner of The Rohatyn Group, a US$3 billion international hedge fund and private equity firm focused exclusively on the emerging markets. He runs the firm’s Hong Kong office and is responsible for its private equity business in Asia, including oversight of the firm’s two joint ventures in the region, Arch Capital in Hong Kong, and CapAsia in Singapore. He has also served as independent board director of CIMB Group Holdings, CIMB Group Sdn Berhad in Malaysia, and CIMB Securities International in Singapore, as well as of First Gen Corporation (since 2005) and Jollibee Foods Corporation (since 2010). He previously served as member of the advisory board and executive committee of Asian Youth Orchestra.

Consing, 53, earned a degree in Economics (accelerated program, magna cum laude) from De La Salle University in 1979, and a master’s degree in Applied Economics from the University of Michigan in 1980.

Says BPI Chairman Jaime Augusto Zobel de Ayala, “After an extensive search process, we are very pleased to announce the selection of Cezar (Bong) Consing as the ideal candidate to lead the Bank of the Philippines Islands in this increasingly complex financial market environment. His extensive experience in international banking and financial services, combined with his knowledge of BPI over a large span of years, will be an exciting addition to our exceptional management team.”

From now until April 2013, Consing and Montinola will be working together to ensure a smooth transition in the management of the bank. Montinola will continue to serve as a member of the board of BPI upon the transition in April.

The above statement pertains to the disclosure made today, December 12, 2012, to the Securities and Exchange Commission and Philippine Stock Exchange, by BPI corporate secretary Carlos Aquino.

Two of the country’s largest business groups, Ayala Corporation (Ayala) and Aboitiz Equity Ventures, Inc. (AEV) through its subsidiary AboitizLand, have together signed a Memorandum of Understanding with ADC & HAS Airports Corporation (ADC&HAS) to form a consortium that will participate in the planned public bidding of the Mactan-Cebu International Airport (MCIA) Passenger Terminal under the Philippine government’s Public Private Partnership (PPP) Program.

ADC&HAS is a global airport operator with a proven track record of successful investment, development and operation of airports around the world. It currently operates airports serving the capital cities of Quito, Ecuador and San Jose, Costa Rica with an annual capacity of over 5 million passengers and over 3.6 million passengers, respectively. It also operates airports in the growing tourist destinations of Liberia, Costa Rica and the Chungcheong Northern Province in SouthKorea.

ADC&HAS combines the operational strength and technical resources of the Houston Airport System (HAS) and the airport privatization and development experience of Airport Development Corporation (ADC). HAS operates three airports in the United States that handle an aggregate capacity of nearly 50 million passengers annually, making it North America’s fourth largest airport operator.

AEV President & CEO Erramon Aboitiz said, “By partnering with ADC&HAS, we are bringing on board one of the most dynamic developers and operators of airports in the world today. ADC&HAS has been at the forefront of airport and commercial development for over 40 years, spearheading landmark airport privatizations in Canada, Hungary, Ecuador, Costa Rica, and just recently in Korea. Coupled with the technical resources from HAS, the world’s 6th largest airport system, we’re confident that our alliance with ADC&HAS will allow us to develop a world-class airport facility in Mactan that all Filipinos will be proud of.”

Ayala President & Chief Operating Officer Fernando Zobel de Ayala, for his part, said, “We are very excited to partner with ADC&HAS in the bid for the Mactan Airport. Their experience and success in building and operating world-class airports in multiple emerging markets under a PPP concession framework make them a highly suitable partner for a project like this. We believe their expertise in airport operations together with the combined strengths of the Aboitiz and Ayala groups can offer the opportunity to significantly increase the standards of airport operations in the country. We believe that Mactan can become an even more important international gateway to southern Philippines.”

ADC&HAS President & CEO Jeffrey Schefferman noted, “We are extremely pleased to partner with Ayala and Aboitiz and are delighted at the prospect of becoming part of a very exciting future in the continued development of Cebu and the Central Visayas region. As we recognize the importance of this project for the Philippines, we were very focused and deliberate in our initial due diligence process as we wanted to ensure that our consortium brought to bear the full range and depth of experiences and the financial wherewithal required to achieve success over the long-term. We are certainly excited to move forward in this PPP process.”

The Mactan-Cebu International Airport New Passenger Terminal project is one of the PPP projects recently approved by the National Economic Development Board (NEDA). The project involves the construction of a new passenger terminal and renovation of the existing terminal. It is reportedly scheduled for bidding in the coming months.