MANILA, Philippines – The millennial grandson of billionaire Lucio Tan was appointed to his biggest role yet: president of LT Group (LTG), one of the Philippines’ largest conglomerates with interests in tobacco, liquor, and real estate. 

Lucio “Hun Hun” Tan III takes over the role from his uncle, Michael Tan, who has been the president of LTG since 2010. The conglomerate announced the appointment during its annual stockholders’ meeting on Wednesday, May 3.

LTG had been expected to name the 30-year-old Hun Hun as president after he was named chief operating officer of the conglomerate in 2022.

Hun Hun, an electrical engineering and computer science graduate of Stanford University, joined the conglomerate in 2019 shortly after the death of his father, Lucio “Bong” Tan Jr. He was named chief operating officer of Tanduay Distillers in 2019, and vice president of PAL Holdings in 2021.

He told stockholders of LTG, which has a market capitalization of P110 billion, that he will focus on optimizing business processes.

“As in the past years that we were able to overcome the challenges of the pandemic, my commitment remains in delivering consistent results and prioritizing the profitability of every company in our portfolio,” he said.

“Additionally, we will continue to strive in creating value for our stakeholders. By staying true to our core values and embracing innovation, we are confident that we can build a resilient and thriving business that will endure for the long term.”

The young Tan assuming the top post comes as LTG recorded its highest net income in a decade at P25.1 billion for the entire 2022, a 24% increase from 2021. The tobacco business contributed 61% of the total attributable net income, followed by Philippine National Bank (P6.6 billion) and Tanduay Distillers (P1.5 billion).

In Lucio Tan’s prepared remarks, read by his grandson during the stockholders’ meeting, he pledged to “draw from experience and the wisdom of years to advance the best interests” of shareholders and the public, while also “keeping an eye on new opportunities.”

The 88-year-old taipan remains as LTG chairman and chief executive officer.

Also during the stockholders’ meeting, Michael Tan, Lucio’s eldest son with his second wife, recalled LTG’s ups and downs since going public in 2013.

He said they were able to hurdle challenges “through hard work, cooperation, and a strong financial position built through the years.”

Michael remains in the company as one of its directors. Other directors named during the meeting were Lucio Tan, Carmen Tan, Lucio Tan III, Karlu Tan-Say, Vivienne Tan, and Juanita Tan Lee. The four independent directors are Johnip Cua, Mary Ng, Wilfrido Sanchez, and Florencia Tarriela. – Rappler.com