Emperador spending P6B on Spain business

Posted on August 07, 2013 10:57:24 PM

LIQUOR MAKER Emperador International Ltd. is investing nearly P6 billion in its operations in Spain, parent Alliance Global Group, Inc. said in a statement attached to a disclosure yesterday.



“Emperador International, a member of Alliance Global Group, will invest P5.8 billion in Spain over the next 12 months,” the statement read. “The investment is part of a dynamic strategy to build Emperador as a strong global brandy brand.”

According to Jorge Domecq Bohorquez, managing director of Emperador International, “part of the P5.8 billion has already been invested through Spain-based Bodega San Bruno S.A. and Grupo Emperador Spain S.A., which are both owned by Emperador.” Officials could not say how much had actually been spent for Bodega San Bruno and Grupo Emperador.

“We have completed the first phase of our acquisition, which includes a sizable inventory of high-quality, well-matured brandy, which are now being stored and aged in sherry casks, as well as 509 hectares of prime vineyard land in Toledo, Spain,” Mr. Domecq was quoted in the statement as saying.

Emperador Distillers, Inc. purchased Bodega San Bruno last January in a deal worth “not more than P3 billion,” according to a disclosure Alliance made that month.

The next phase of Emperador’s investment in Spain “includes the acquisition of even more vineyards and other brandy production facilities, which include distilling and bottling plants,” the company said.

Due diligence is currently being conducted for the said acquisition, it noted.

“Our next steps forward will further strengthen our position as the world’s no. 1 brandy company by volume, and make us exceptionally competitive as a global brandy producer,” Mr. Domecq added.

The official said the company is also looking to expanding the distribution network of Emperador Deluxe Spanish Edition, a brandy produced and bottled in Spain.

“We launched Emperador Deluxe early this year to a very warm reception and the response of the Philippine market continues to be very good,” Mr. Domecq said.

“We are looking closely into tapping other Asian markets such as China and Vietnam, initially.”

Alliance Global, the holding firm of tycoon Andrew L. Tan, booked a net profit of P4.91 billion in the first quarter, up by 18.31% from P4.15 billion in the same period last year on the back of higher revenues.

In the same comparative periods, Emperador Distillers net profit jumped by 40% to P1.4 billion from P1 billion as revenues rose by 17% to P6.5 billion from P5.5 billion, according to a statement last May.

Shares of Alliance ended yesterday’s trading at P26 apiece, unchanged from their finish last Monday. — Cliff Harvey C. Venzon


PAL invests in Cambodia Airlines



MANILA, Philippines (UPDATE as of Apr. 4) – Legacy carrier Philipine Airlines (PAL) has struck a deal with one of Cambodia’s biggest tycoons to launch a new airline later this 2013.

Kith Meng, chairman of Royal Group — a hotel, media and telecoms empire in Cambodia — and PAL inked the deal late Tuesday, April 2, according to a statement. (Editors’ note: Earlier reports said it was PAL’s shareholder San Miguel Corp. that signed a deal with the Royal Group. In a disclosure to the Philippine Stock Exchange on April 4, the diversified conglomerate clarified that it was PAL that entered into an agreement with the Cambodian group)
The Cambodian businessman will retain a 51% share of the newly-minted carrier — Cambodia Airlines. PAL will own the remaining 49%.
Aviation portfolio
Cambodia Airlines is now the newest addition to San Miguel’s portfolio of aviation-related assets.
In April 2012, San Miguel sealed a 49% controlling stake in Asia’s oldest carrier, PAL, where it partnered with tycoon Lucio Tan.
In June 2012, San Miguel président Ramon Ang had hinted that they were considering a deal with “regional airline.”
In November 2012, San Miguel said it is in talks for a possible investment deal with flag carrier of Cayman Islands in the Carribean.
San Miguel is also beefing up its portfolio of airports. Its subsidiary, Trans Aire Development Holdings Corp., has won a 25-year contract to rehabilitate and operate the Caticlan airport, the jump off point to tourists’ favorite, Boracay island.
San Miguel has been aggressively branching out into new ventures like oil refining, aviation, toll road operations, and power generation to beef up its core businesses that includes a brewery that is now in its 123rd year.
Consolidated net profit of San Miguel surged 35% to P38.68 billion in 2012 on strong performance of core and new businesses.
Cambodia’s 2nd airline
The newly announced airline, Cambodia’s second, will “contribute to Cambodia’s economic growth by creating employment opportunities, bringing investors and building a strong aviation industry,” Kith Meng said in the statement.
Royal Group’s chief financial officer Mark Hanna told AFP that domestic flights could begin as early as June 2013 with international routes expected to begin in October.
“There is a huge growth in tourism and that has a direct impact on aviation,” Hanna said, predicting the Cambodian aviation industry will surge over coming years.
Cambodia launched its first national airline, Cambodia Angkor Air, in 2009, after a previous effort folded in 2001.
More than 20 foreign airlines, including Japan Airlines and Qatar Airways, currently operate flights to Cambodia. – with reports from Lala Rimando/Rappler.com and Agence France-Presse

Airplane image via Shutterstock