During the company’s stockholders’ meeting, Pascua said their strategy for the remaining non-property investments – shipping firm Negros Navigation Co. Inc. and 1st E-Bank – would be anchored on "building value, strengthening operational teams, and developing and implementing new business plans."
In a span of just two years, MPC had disposed of several strategic but non-property assets in line with its shift to a property development company, with the Bonifacio Global City as its flagship project.
Among those were wholly-owned subsidiaries Metro Bottled Water Corp., Metrolab Industries Inc. and Metrovet Inc., packaging firm Steniel Manufacturing Corp.; and a sizable eight percent stake worth P12.1 billion in telecoms giant PLDT.
The proceeds from these divestments were primarily used to reduce the company’s debts, which in 2000 was pared down 27 percent to P16.4 billion, from P21.8 billion in 1999.
MPC chief financial officer Grant Ferguson said at this stage, their priority is finding new partners for both Nenaco and 1st E-Bank, as both have managed some improvements in their operations over the past year.
"We will continue to seek strategic partners with the experience and track record to further enhance these companies’ productivity and profitability," he said.
Ferguson added they are in talks with a number of interested parties although "some are serious, some are not."
Last year, Nenaco reduced its net losses from P778 million to P693 million as the company continued to suffer from high financing charges, stiff competition from both shipping lines and airlines, which caused a drop in cargo and passenger load, and the series of increases in fuel prices.
1st E-Bank also remained in the red the past year but likewise managed to trim its losses from P1.2 billion to P705 million. The losses were mainly caused by the delayed infusion of equity as potential investors and partners decided to wait as the country was faced by a political crisis.
The two non-core subsidiaries make up only about 10 percent of the group’s consolidated asset base of P94.45 billion. Their losses, however, partially offset the gains from the sale of other MPC assets, leading to a slight decline in MPC’s profit, from P2.4 billion in 1999 to P2.23 billion last year.
This year, Ferguson said the MPC group will spend another P2.5 billion, more than half of which will go into the development of Fort Bonifacio as well as for the fleet modernization of Nenaco vessels. – Conrado Diaz