Ayala gains edge over SM in Ortigas battle

MANILA, Philippines – The Ayala group’s allies in the Ortigas family’s holding firm reportedly gathered the tie-breaking support of the Catholic Church in the boardroom battle for control of the firm that owns prime land assets in Metro Manila.

On Monday, July 22, the Ortigas and Company Limited Partnership (OCLP Holdings) announced that it had chosen a new board which is now controlled by the Rafael Ortigas bloc, the allies of the Ayala Land inc. 

This means that Sy-led SM allies, led by former ambassador to Mexico Francisco “Paqui” Ortigas III, were left with a minority vote after the Roman Catholic Church which held a tied-breaking position moved to support the Ayalas.

The Church’s holdings are mainly held through the Roman Catholic Archdiocese of Manila.

The Ayalas and Sys have been eyeing to forge strategic partnerships with OCLP Holdings, the Ortigas clan’s flagship holding firm and the parent company of urban property developer Ortigas & Co, which owns over 55 hectares of Ortigas-owned land in Metro Manila.

Both groups were seeking to further cement their position as leading developers by acquiring OCLP Holdings’ land holdings, which includes parts of the Ortigas Business District and the 16-hectare Greenhills Shopping Center.

The stalemate has lasted for more than a year as neither of the two Ortigas factions owns a controlling stake in OCLP Holdings and has led to deep divisions in the Ortigas clan, one of the country’s oldest landed family.

Read about the race for Ortigas land deal here.

Status quo?

“It’s status quo as far as SM is concerned, and the proposal of Ortigas Holding stands,” Corazon P. Guidote, Senior Vice President for Investor Relations of Sy-led holding firm SM Investments Corp., told Rappler on July 22.  

Days before the announcement, Hans Sy, son of the country’s richest man, Henry Sy Sr, told The Philippine Star: “We believe that something good will still come out of this.”

In a statement on July 22, OCLP Holdings said it held its stockholders’ meeting last July 19, 2013 and announced the new members of the board, as follows: Jose Luis O. Montilla, Roberto V. San Jose, Fernando M. Ortigas, Elmer B. Serrano, Edmundo L. Tan, Rolando R. dela Cruz, Yolanda M. Eleazar, Delfin P. Angcao, Antonio Pacis.

“The board also appointed Roberto V. San Jose as the new president and chief executive officer and Arnold S. David as the new chief financial officer,” the statement said. San Jose replaces J. Rowell L. Recinto, while Mr. David replaces Emmanuel A. Rapadas.

Joselito F. Santos remains general manager of the Real Estate Division, while Cathy Casares-Ko leads the Shopping Center Division of the company, the statement added.

The company said it remains committed to pursue and continue its various projects in the pipeline, including residential and retail developments such as Circulo Verde, Viridian, Royalton, Estancia, Tiendesitas, and the re-development of Greenhills Shopping Center. – Rappler.com