A boardroom fight in the making

Did you know 1: Aside from developing and operating two malls in Xiamen, the SM Group of Henry Sy is also now the owner of an empty lot in the Chinese province which is large enough to build a third mall in.

Land acquisition here and abroad is the job of son, Henry Sy Jr.

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Did you know 2: There’s a plan to sell the individuals rooms in the Fraser Place (Makati) Bldg. at a discounted price of P40,000 to P50,000 per square meter. The going price along Valerio St. near the Citibank NA head office is about P80,000/sqm.

The building is managed by a Singapore-based serviced apartment management company.

The building itself, however, is owned by United Coconut Planters Bank, whose president and chief executive officer Jose Querubin wants to liquefy non-bank assets such as the White Cove Resort in Batangas.

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The way National Broadcasting Network general manager Joey Isabelo tells it, Filipinos almost didn’t get to view the 2004 Olympic games in Athens. It all came down to money.

You see, NBN-Channel 4 was in arrears for $1.2 million for the TV coverage of the 2000 Sydney Olympics. On top of that, the coverage for Athens was pegged at $1.6 million.

For lack of funds, NBN decided to skip Athens (and just save up for the 2008 Games in Beijing) until it was informed by the IOC that the Philippines would be the only member-country without any form of TV coverage at all.

In the end, NBN raised $1.2 million to close the books on Sydney. The balance $1.6-million coverage for Athens was given on credit, payable within 24 months and upon the guarantee of the Asian Broadcasters Union.

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Next week promises to be an interesting one for the Philippine Stock Exchange.

For one, former PSE director Francis Lim will be reporting for work as PSE president. For another, the issue on whether or not resigned president Cayetano Paderanga Jr. can stay on the board will be resolved.

Right now, there are seven broker directors in the board. Of the remaining eight, three are independent directors (including Mr. Lim before he accepted the presidency); three represent the issuers and investors; and one is held by the president (who is classified as a non-broker, non-independent).

That empty seat in the 15-man board – the so-called 8th man/woman – is said to be crucial to the continued chairmanship of Alicia Morales-Arroyo.

Last Aug. 25, Aleli Morales-Arroyo asked the Securities and Exchange Commission to confirm that Dondon Paderanga remains qualified as PSE director and to grant PSE exemptive relief from the requirement of having three independent directors when Mr. Lim assumes the PSE presidency on Sept. 6.

Six days later, SEC director for market regulation Jose Aquino made the following recommendation on behalf of the commission chaired by Lilia Bautista (who was on her last day of work):

• "PSE’s request for exemptive relief from the requirement of having three independent directors should be denied. No later than 15 days after Atty. Lim’s assumption of the PSE presidency, the Board should fill up the vacant independent director seat by electing a qualified outsider, in accordance with the PSE by-laws; and

• "PSE may wish to consider having Dr. Paderanga serve as the sectoral director for other market participants, provided it is in accordance with their by-laws and rules and procedures."

Pepe Aquino’s letter was received by PSE general counsel Zayber Protacio.

They very next day or on Sept. 1, Mr. Aquino received a letter from PSE directors Francisco Villaroman and Vivian Yuchengco asking for clarification: "Dr. Paderanga is disqualified to remain in the Exchange Board, on the grounds that he is not, now or ever, been a market sector representative (having been included in the board in his role as president). Thus, his membership (should) be vacated and the Board can…elect a new independent director."

A copy of the letter was given to new SEC chairman Fe Barin.