MVP vows clearer strategic direction for First Pacific

Once again calling the shots at Hong Kong-based First Pacific Co. Ltd. (FPC), newly appointed managing director (chief executive officer) Manuel V. Pangilinan has vowed to further strengthen the company’s financial position and achieve clarity in its strategic direction.

With the resignation of chief operating officer Michael Healy and general counsel Ron Brown effective end of April, many view Pangilinan’s new designation, from being executive chairman to being in effect the CEO of First Pacific, as an expression of renewed confidence by the Salim family, FPC controlling shareholders. Anthoni Salim was named chairman of the board.

"This clearly means that MVP has been tasked with leading the First Pacific team in executing the plans and strategies as approved by its chairman and the board. In other words, he is back in control alongside Anthoni Salim to lead First Pacific moving forward," company insiders noted.

Healy and Brown are believed to be instrumental for convincing the Salims that a sale of FPC’s share in PLDT to the Gokongwei group can be pulled off. But because of the anti-competitor clause in the PLDT bylaws (the Gokongweis own Digitel which is PLDT’s staunch rival in the wireline telephone business) and due to staunch opposition from PLDT management, the Gokongwei group withdrew its offer to buy.

And because Pangilinan was against the sale to the Gokongweis, he became at loggerheads with Healy and Brown who at one point were said to be working for his ouster from First Pacific.

Pangilinan, however, will remain as president and CEO of Philippine Long Distance Telephone Co. (PLDT), which is 24.4-percent owned by First Pacific and among its very few remaining gems (the other one is Indofood in Indonesia).

There remain eight directors at First Pacific – Pangilinan, Sutanto Djuhar, Anthoni Salim, Tedy Djuhar, Ibrahim Risjad, David Tang, Edward Tortoricci, and Edward Chen – who will all continue in office under the company’s by-laws.

The board has appointed two additional independent non-executive and one non-executive directors. They are Philippine Ambassador to the US Albert del Rosario, and Robin Nicholson as independent non-executive directors; and Benny Santos who is commissioner of various Salim Group companies, as non-executive director.

During FPC’s annual general meeting yesterday, Pangilinan informed the stockholders that the group has posted solid growth in 2002 and returned to profitability, recording a profit of $40 million despite the effects of disposals, regional risk concerns, and the Gokongwei failed transaction.

FPC was also able to repay its $350 million convertible bonds. It was also reported that PLDT has undertaken a successful liability management program and payment of some of its debts while Indofood secured over $600 million in competitive financing to replace existing debts and more efficiently meet ongoing working capital and capex needs.

In the meeting, Pangilinan also noted that achieving cohesion in the company’s internal relationships is among the company’s priorities. "In many respects, today represents a new beginning for First Pacific. We have successfully addressed numerous issues that surrounded the company last year and I look forward to working with my team in First Pacific as we execute the plans and strategies the board of directors has set out for us," he said.