JG Summit embarks on expansion binge

Fresh from a recent changing of the guard, the Gokongwei’s JG Summit Group will embark on an aggressive expansion binge this year as it plans to boost its telecommunications, property and food processing units.

In its board meeting last week, JG Summit Holdings Corp. elected James L. Go as its new chairman and CEO, together with Lance Y. Gokongwei who takes over Go’s previous position of president and COO.

The twin moves was result of the retirement and resignation of taipan John Gokongwei Jr. as chairman of the board effective Dec. 21, 2001 after turning 75 years old last September. In the same meeting, the JG Summit board created the position of chairman emeritus for the elder Gokongwei.

Thus, the JG Summit patriach handed over the direct management of the conglomerate to his younger brother James and son Lance.

This year, JG Summit said it will spend about P15 billion ($300 million) or about 50 percent more than its programmed expenditures last year as it plans to pump up the operations of its major business units such as the flagship Universal Robina Corp., property arm Robinsons Land Corp. and Digital Telecommunications Philippines Inc. (Digitel).

The investments will be funded by internally generated funds and peso and foreign currency borrowings, including the issuance of at least $100-million worth of bonds later this month.

The four-year bond issue, which will be guaranteed by JG Summit in favor of a foreign-owned subsidiary, will target investors in Hong Kong and Singapore.