Ramon Ang Buys Into Lopez Empire

Tycoon Ramon Ang, chairman and CEO of diversified conglomerate San Miguel Corp., has officially joined the Lopez empire, ending months of speculation surrounding the Lopezes’ white knight.

In his personal capacity through his wholly owned holding company, Illumina Investment Holdings Inc., Ang acquired a 25.7-percent stake in Lopez Inc., the holding company of the Lopez Group.

Illumina Investment executed a deed of assignment with the members of the family of Eugenio “Gabby” Lopez III for the purchase of the outstanding and issued shares of stock of Lopez Inc. registered in the name of Crème Investment Corp.

Ang’s entry into the Lopez empire comes amid an ongoing dispute between the Lopez cousins, with Federico “Piki” Lopez on one side and the Gabby Lopez-led majority on the other.

Crème Investment is the holding company of Gabby’s branch of the Lopez empire, owning a 25.7-percent stake in Lopez Inc.

“I came in because I believe in these businesses, and because a steady partner at the table can be good for everyone around it,” Ang said in a statement on Monday, Aug. 10.

Ang said the family branches that continue to hold the controlling majority of Lopez Inc. will continue to lead the company.

“My interest is that the group comes out of this stronger,” he added. “I have known the Lopez family for decades – not one branch of it, but all of them. I am a friend to each, and I intend to stay that way.”

Gabby, for his part, also said his family has known Ang for a long time and “I am confident he will be a good partner to Lopez Inc.”

Gabby, the son of Eugenio “Geny” Lopez Jr., said he sold for two reasons: “The first is my family. This dispute has not been good for any of us, or for the people who work in our companies. This allows us to take a step towards the restoration of family peace.”

“The second is that it allows me to channel our family’s resources into businesses aligned with our personal mission. We will announce more on this in due time,” he added.

Piki, president of Lopez Inc., welcomed Ang’s entry into the company “with deep appreciation.”

“We have been friends for a long time and so I do look forward to working together with him,” Piki said.

“We recognize the value that Ramon brings to Lopez Inc. with his proven expertise and extensive experience. The Lopez family’s entry into this partnership with him is truly a welcome development and in line with our history of partnering with recognized individuals and institutions to promote the growth of our businesses,” he added.

Piki further called Ang’s investment a great step toward resolving issues that have affected their family as well as their businesses, saying that it “can only be good for everyone.”

Lopez Inc., which is owned by the four branches of the Lopez heirs through each branch’s respective private holding companies, serves as the principal holding company of the Lopez Group of Companies.

Due to the sale by Creme Investment of its shares in Lopez Inc., First Philippine Holdings announced the resignation of Roberta Lopez Feliciano as a director of the company’s board of directors effective Aug. 9.

ABS-CBN, for its part, said the company does not foresee any impact on its business, financial condition, operations or ownership structure given that the transaction is at the Lopez Inc. level.

Share price of listed holding firm Lopez Holdings Corp. climbed by 1.17 percent to P6.07 per share on Monday, while that of First Philippine Holdings increased by 0.61 percent to P90.60 apiece.

ABS-CBN shares surged by 5.76 percent to P3.67 while First Gen Corp. saw a 1.55-percent jump to P19.60.

Property developer Rockwell Land Corp. likewise recorded a 0.69-percent increase to P2.92 per share.

Globalinks Securities and Stocks Inc. head of sales trading Toby Allan Arce said Ang’s acquisition is significant because it gives one of the country’s most prominent businessmen substantial exposure to an established portfolio spanning power, property and media without giving him control of the Lopez Group.

For the Lopez companies themselves, he said Ang’s entry could strengthen financial and strategic flexibility.

Arce said Ang’s financial resources, commercial relationships and deal-making experience could eventually help facilitate partnerships, recapitalization or strategic restructuring for ABS-CBN.

“But it would be premature to interpret his entry as a solution to ABS-CBN’s financial or franchise-related challenges. There has been no announced transaction that directly injects capital into ABS-CBN, and the company still needs to demonstrate that its evolving content and distribution model can produce sustainable profitability,” he said.

Arce, meanwhile, sees the power portfolio as arguably the most strategically interesting component, with Ang’s position at the parent-company level giving him indirect exposure to assets that would be difficult and expensive to replicate.

“Overall, Ang’s entry is important less because it represents an immediate change in control and more because it introduces a financially powerful strategic investor into the Lopez Group at the parent level,” Arce said.

“For Ang, it provides diversified exposure to valuable Philippine businesses and substantial future deal-making optionality. For the Lopez Group, it potentially brings additional capital, strategic expertise and flexibility while allowing the remaining family branches to retain control,” he said.