Oscar Lopez steps down as Benpres CEO; Manolo takes over

MANILA, Philippines - Oscar Lopez, the patriarch of the Lopez clan, will relinquish his post as chairman and chief executive officer (CEO) of the family-run conglomerate Benpres Holdings Corp. (now Lopez Holdings Corp.) effective tomorrow, June 12, paving the way for his brother, Manolo, to assume the position.

Oscar, who turned 80 last April, said it was time to pass on the mantle of leadership to Manolo, who is giving up his post as CEO of the Manila Electric Co. (Meralco) beginning June 30. The elder Lopez, who has served as chairman of Benpres since 1999 and as a director for 17 years will take on the role of chairman emeritus.

Oscar is also retiring as chairman of First Philippine Holdings Corp. in line with the leadership succession process within the Lopez Group. 

He said Manolo is fit for the job, citing the latter’s success in transforming the country’s largest power distribution into a more responsive, efficient and professional organization. During Manolo’s stint as Meralco CEO from 1986 to June 2010, the power retailing giant reduced systems loss from 21 percent to 8.15 percent, and power interruptions from a high of 37 times a year in the 1990s to an average of only six times today.

“I have nothing but praises for the way Manolo has led Meralco. His work ethic – leading by example – and genuine concern for all levels of the workforce – the fair treatment of rank-and-file and officers alike – are something all leaders should emulate. I am certain he will lead Benpres and the Lopez Group investments toward new directions aligned with the values handed down to us by our forebears, and contributing to national development at the same time,” Oscar said.

Benpres chief finance officer Salvador G. Tirona is also taking over the position of president and chief operating officer of Benpres, replacing Angel S. Ong who retired after 16 years of service. Prior to Benpres, Tirona was CFO of Bayan Telecommunications Inc. and Maynilad Water Services Inc. He played a critical and strategic role in implementing Maynilad’s rehabilitation plan in 2003.

Manolo’s assumption of the chairmanship of Benpres comes at an auspicious time as the flagship holding company is pursuing the completion of its financial restructuring of outstanding debts amounting to around P2.9 billion.

“We are blessed, and thankful, that we are now able to usher in a new decade relatively free of heavy debt problems, free of grave threats to any of our major businesses, profitable across our portfolio and able to look forward to resuming our entrepreneurial and pioneering ways. This has come at considerable cost to us, but that is, perhaps, a fair price to pay in order to extricate ourselves from the war for survival, and to place ourselves in a position from which we can grow our businesses again,” Oscar said.

While he acknowledged the group’s dominance in the power generation and media businesses, Oscar said they cannot afford to be complacent, pointing out that many powerful business groups are looking for large-scale investment opportunities where the group is – power, infrastructure and media.

“We cannot stop these groups from deploying large amounts of capital in the pursuit of their own business aspirations. But we need to show them, however, is that you cannot wrest market leadership in any business simply by throwing large amounts of money at it,” Oscar said.

Tirona said the company is putting off divestments for the meantime as it remains in discussions with its creditors for restructuring of its debt. “The remaining debt of P2.9 billion, while manageable, must be formally restructured. It is a work in progress. The basic template of the offer to creditors is that Benpres either buy back the debt at a discount when cash is available or agree to a 12.5-year bullet repayment,” Tirona said.

The holding firm has significantly trimmed its debt from a high of $560 million in 2002 when it declared a debt standstill to the current $65 million.

He said Benpres is confident it would sustain its positive operating performance for the rest of the year given higher contributions from its main assets – First Philippine Holdings Corp. and ABS-CBN Broadcasting Corp.