Ayala Corp.’s independent directors are former execs
Credit to Author: EMETERIO SD. PEREZ| Date: Thu, 28 Mar 2019 16:48:07 +0000
As principal stockholder of Manila Water Corp. (MWC), Ayala Corp. (AC) directly holds 844.537 million common WMC common shares. It also indirectly owns 22.409 million WMC common shares for total holdings of 866.946 million MWC common shares, or 41.99 percent.
Despite AC’s ownership of a little less than 42 percent of 2.065 billion outstanding MWC common shares, the Zobels not only control the board but also managed to appoint four independent directors (IDs).
As the water company’s IDs, are Jose L. Cuisia Jr., Jaime C. Laya, Sherisa P. Nuesa and Oscar S. Reyes able to exercise their independence inside MWC’s boardroom?
Being independent, they face during board meeting Fernando Zobel de Ayala, chairman of the board; and Jaime Augusto Zobel de Ayala, vice chairman. Jaime Augusto is the older of the two brothers.
Add to this the four IDs’ predicament of speaking their minds when faced by the Zobel brothers and MWC’s other regular directors like Gerardo C. Ablaza Jr., Antonino T. Aquino, Delfin L. Lazaro, John Eric T. Francia and Fernando M. Dela Cruz.
Like Ayala’s IDs, aren’t they AC’s also former top executives of the Ayala group of companies, which should also be known as the Zobel conglomerate?
Dividends
No amount of dividends, either in cash or in stock, will solve the recurring water crisis.
Still posted on the Philippine Stock Exchange (PSE) website is Manila Water’s declaration of cash dividend of P0.4551, P0.4283, and P0.4302 per MWC common share which the company will pay on March 28, 2019. The other two dividends were paid on Oct. 31, 2018 and March 28, 2018.
All these dividends and other items in the agenda including the election of directors will be ratified when Manila Water’s stockholders meet at 9 am on April 22, 2019 for their annual meeting at Fairmont Makati.
With its ownership of 844.537 million MWC common shares, or 41.99 percent, Ayala was entitled last year to cash dividend of more than P1.115 billion.
The board of Manila Water “approved the declaration of 2019 first semester cash dividend of P0.4551 per share on the outstanding common shares and P0.455 on the outstanding participating preferred shares.” The two dividends were paid on March 28, 2019 to AC’s stockholders as of March 14, 2019.
At P0.4551 per MWC common share, AC will receive P394.547 million for its ownership of 866.946 million AC common shares.
As “majority stockholders, the public received P521.763 million for holdings on to 1.146 billion MWC common shares, or 55.52 percent.
Insiders’ trades
Jerome Su Tan, global financial officer of Integrated Microelectronics Inc. (IMI), sold 146,300 IMI common shares at P13.54 each. The sale reduced the number of IMI common shares he owned to 2,884,733 IMI common shares from 3,031,033 IMI common shares. In his filing, his sale reduced the number of IMI common shares he lodged with PCD Nominee Corp. to 616,010 IMI common shares. The number of IMI common shares issued to him under employees’ stockholders’ ownership plan remains intact at 1,268,723 IMI common shares.
On March 25, 2019, IMI common shares opened as its high of P13.16, fell to a low of P12.70 and closed the session at P12.80. The stock recorded a 30-day high of P14 and dropped to a month’s low of P12.22.
On the other hand,, as the controlling stockholder of Grand Property Corp., Alfred Vy Ty, a director of the 13-person board of Metropolitan Bank and Trust Co. (MBT), sold 3,010 shares at different prices in seven transactions on March 19, 2019. He sold 67,110 MBT common shares at P82.05 each; 42,000 MBT common shares at P82.10 each; 2,600 MBT common shares at P82.15 each; 2,000 MBT common shares at P82.25 each; 2,000 MBT common shares at P82.30 each; and 790 MBT common shares at P82.35 each. Before the sale, Ty owned 15.122 million MBT common shares as of Feb. 26, 2019.
On March 25, 2019, MBT common shares opened trading at P80.90, which was the day’s high, fell to a low of P78.90 and closed the session at P79.45. The stock hit a 30-day high of P83.80 and dropped to a month’s low of P75.05.
Meanwhile, Willy Ng Ocier, vice chairman of Belle Corp. (BEL), bought additional 388,000 BEL common shares at different prices in two transactions. On Jan. 14, 2019, he bought 168,000 BEL common shares at P2.38 each and 220,000 BEL common shares at P2.37 each. The acquisitions increased his participation in the Belle’s ownership to 48.542 million BEL common shares, or 0.497 percent.
On March 25, 2019, Belle common shares opened trading at P2.40, the stock’s session high, dropped to a low of P2.37 and closed at P2.38. The stock recorded a 30-day high of P2.64 and fell to a 30-day low of P2.31.
By the way, will Laguna Water, a wholly owned subsidiary of Manila Water, send us our bill at least two weeks before, and not after, due date? Just asking.
esdperez@gmail.com
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