Thursday, September 25, 2008 Aboitiz unit sale ‘good for Cebu’
CEBU City Mayor Tomas Osmeña yesterday said the sale of most of the Aboitiz family’s domestic shipping business is good because it ushers in investments and exposes Cebu to foreign investors.
“They are selling the business, but the service will continue, I think. I don’t think there is any problem there. I’m sure the ships stay here because they are selling the business, not the ships,” the mayor said.
Regional Development Council 7 private sector representative Robert Go, who is also a former governor of the Philippine Chamber of Commerce and Industry, shared Osmeña’s opinion and said that the “bigger chunk” of the cargo in the country ply the Manila-Cebu routes.
“It doesn’t matter who operates the business,” Go said yesterday.
Citing opportunities in other industries, like power, conglomerate Aboitiz Equity Ventures (AEV) announced Tuesday its plan to sell Aboitiz Transport System Corp. (ATSC) and reinvest the money on other ventures that would give the company better returns.
The AEV board of directors disclosed its plan to accept the unsolicited offer of KGLI-NM Holdings Inc. to buy all of AEV’s shareholdings in ATSC, subject to an audit.
KGLI-NM, which is expected to finalize its decision in 60 days, is jointly 60 percent owned by domestic company Negros Holdings and Management Corp. and 40 percent owned by Dutch company KGL Investment BV that is beneficially owned by the Kuwaiti company KGL Investment Company.
Investments
Osmeña said that the sale will also be advantageous to Cebu in terms of luring investments.
“It’s good that we have Middle East businessmen coming in. This is a good way of introducing Cebu (to international businessmen),” the mayor said.
He said that while there is a change of management, the shipping offices remain in the same location and the same people man them so that the service is basically unaltered.
Earlier, AEV chief operating officer Erramon Aboitiz said the transaction is good for the country, the company and the employees because they could keep their jobs. (RHM/CYR)
