Michael Tan: The next emperor

The recent move of taipan Lucio Tan to consolidate his businesses into one holding firm placing his son, Michael Tan as “the next emperor” sends a clear signal to everybody that “El Kapitan” has finally decided on who would be his successor. For several years, there have been a lot of guessing going on, fanned by the tycoon’s silence and when pressed to reveal his plans for succession – the tycoon would answer in jest that perhaps he would just divest all his possessions. The holding firm, to be known as the LT Group, Inc., has an estimated asset of P200 billion and will be the flagship entity holding “the emperor’s” vast interests in the liquor, cigarette manufacturing, property, airline and banking industries.

Obviously, the announcement has generated renewed interest in Michael, a good looking and personable young man who will be the “next emperor” of the LT Group of companies. Unlike his more “famous” siblings Vivienne and Lucio “Bong” Tan Jr., Michael has been relatively under the radar despite having been the COO of Asia Brewery. Those who know the young man credit him for the introduction of energy drink “Cobra” (connoting the Filipino male’s potent energy and readiness to spring into action), now a popular choice among the low and mid-income market.

Michael, the son of Lucio Tan’s second wife Letty, is just a bit older than Bong. Both went to Dunman High School in Singapore, and spent a couple of years at the University of Beijing taking up intensive courses in Mandarin, during which time they were required to write letters in Chinese every month to their father. And while other foreign students with billionaire fathers were housed in luxurious apartments, the Tan boys lived in the spartan dormitories where Chinese students were quartered. Michael eventually took up Civil Engineering at the University of British Columbia in Vancouver, Canada – where he met his wife Angeline Ng, daughter of Filipino-Chinese steel magnate John K.C. Ng.

Those who have been closely watching the Lucio Tan family saga say there was already an inkling that Michael was going to be the heir-apparent when Lucio made him temporary chief of Eton Properties while looking for the replacement of Danilo Ignacio who stepped down as president. 

A couple of years ago, Kapitan had a falling out with his brother Mariano Tanenglian – the reason for which has been relatively kept away from the public eye although there were allegations of embezzlement and rumors that Tanenglian had wanted to start his own businesses which did not sit well with his brother, “the emperor.” In any case, things took on a bitter turn when Mariano was barred by several armed bodyguards from entering the premises of Allied Bank – prompting Mariano to sue the security officer who we are told eventually got promoted to senior vice president. Tanenglian was also dropped from the Eton board, along with an announcement that he would also be stricken off the other companies like Tanduay, PAL and Macroasia. The rift was also fueled by Mariano’s offer to testify against his brother in the PCGG case of ill-gotten wealth (which was recently dismissed). 

Many however say that one of Tanenglian’s undoings – aside from the fact that he did not visit Lucio when the latter broke his leg while stepping down from his helicopter – was his supposed closeness to Lucio’s first wife Carmen and her son Bong whom Mariano was pushing to be Lucio’s heir. Like his uncle, Bong also indicated his wish to get into other businesses outside the fold.

This latest development should put to rest any speculation on who will be in charge when El Kapitan finally leaves the scene. Already, many LT executives are lining up to see Michael – a scene just like in the movie “The Godfather.”

 Economic analyst: MVP, RSA good for the country

An economic analyst who did not want to be identified said he believes the aggressive posture of both Manny V. Pangilinan and Ramon S. Ang in acquiring companies and/or going into businesses that require massive capitalization and risks is not only good for the country but the best way to drive up the economy. The savvy business rivals are taking the lead in investing into this country, giving encouraging signals to both local and foreign investors that the Philippine business climate continues to be healthy.

Both MVP and RSA are “self-made” businessmen, and their rise to the top are strong endorsements for the Filipino values of industry, persistence and hard work as major ingredients for success – plus of course a little out-of-the-box thinking. Those who inherit businesses are usually content to keep things pretty much the way they inherited them, but MVP and RSA both have far-reaching visions and are not afraid to take the risks that come with the challenges.

MVP for his part did not hesitate to “cut the fat” when he initially took over PLDT – and look at where the company is now: the biggest in the Philippines. RSA on the other hand was a maverick who, despite initial resistance, pushed for diversification which is why San Miguel has become a giant conglomerate with interests in various industries, with SMC Holdings fast approaching its target revenue of P1 trillion.

What were once companies with a single focus have become drivers of the economy, generating hundreds of thousands of jobs (direct and indirect) for Filipinos. These two visionary businessmen have also invested in capital-heavy industries such as power, energy, mining and oil as well as infrastructure and in San Miguel’s part, the airline industry. As rivals, both men are formidable but when they put their resources together, they can make a major impact in the economy, like their proposed P45 billion expressway link project that would connect NLEX and SLEX, NAIA and Clark as well as Central Luzon to Metro Manila, with over 8,000 jobs to be generated.  

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