SUMMARY
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MANILA, Philippines – Ramon Ang, president of diversified conglomerate San Miguel Corp., has taken over as president and chief operating officer of Philippine Airlines (PAL), following a deal giving San Miguel a minority stake in the carrier.
Ang replaces Jaime Bautista, who was earlier reported to have resigned from his post as officer and director, said PAL Holdings Inc. in a disclosure to the Philippine Stock Exchange on Friday, April 20.
Former trade minister Roberto Ongpin and businessman Inigo Zobel have been elected as directors of the airline. Other new directors include Aurora Calderon and Ferdinand Constantino.
Taipan Lucio Tan remains as chairman.
Finance and legal
The changes in both the board and management levels at PAL are reminiscent of previous acquisitions of San Miguel.
Just like when San Miguel acquired direct and indirect controlling stakes in oil giant Petron Corp in 2008, San Miguel is also taking over key management functions in PAL, especially those pertaining to finance and legal.
Aside from Ang, other newly appointed officers of PAL include:
- Harry Tan – Treasurer
- Estelito Mendoza – Corporate Secretary
- Ma. Cecilia Pesayco (previously Corporate Secretary) – Assistant Corporate Secretary
- Irene Cipriano – Assistant Corporate Secretary
- Daniel Ang Tan Chai – Chief Finance Officer
Business deal
Last April 3, San Miguel signed investment agreements with two holding companies owned by Tan for new shares in PAL and low cost carrier, AirPhil Express.
San Miguel, which has been diversifying away from its core food and drinks business into heavy industries, said it would shell out $500 million for the shares, equivalent to a 49% stake in the flag carrier.
The parties said the buy-in will help PAL in its refleeting program, and make it more viable and competitive.
PAL, Asia’s oldest airline, has been bleeding financially due to a number of factors, including labor disputes and skyrocketing fuel prices. It has also been hit by increasing competition among players in the local and global aviation industry.
San Miguel, for its part, is expected to benefit from synergies between PAL and Petron Corp. PAL accounts for 4% of Petron’s jet fuel sales. – Rappler.com
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