First Pacific Company Limited, an investment management and holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Australasia, Singapore, and internationally. The company offers a range of telecommunications and digital services, including fiber optic backbone, fixed line, and cellular networks. It also manufactures and distributes a range of food products, including noodles, dairy, snack foods, food seasonings, nutrition and special foods, and beverages; flour and pasta; oil palm, rubber, sugar cane, cocoa, and tea plantations; and cooking oils, margarines, and shortenings. In addition, the company offers bread, dressings, condiments, mayonnaise, frozen pastry, cake mix, desserts, sauces, and vinegar; explores for, mines, and produces gold, copper, and silver; and produces sugar and ethanol. Further, it is involved in the operation of gas-fired power plant; electricity generation and distribution; provision of water distribution and sewerage services; and operation of toll roads, hospitals, and rail lines, as well as offers logistics services. First Pacific Company Limited was founded in 1981 and is headquartered in Central, Hong Kong.
04 April 2019 Presentation https://www.firstpacific.com/wp-content/uploads/2018/07/FPC-IR-handout-2019-04-04.pdf
I looked at the OTC ADR and the Hang Seng share listing and they both have First Pacific at a reasonable bargain. I guess the main thing to determine is if there is value or if it's a value trap? Thank you for posting the presentation as well for us Marvan. It seems like the highest net asset value is in Indofood which I did not know is the largest instant wheat noodles producer globally. That alone is a staple meal through SE Asia. There's also a nice defensive telecom component and as you mentioned as well, mining (which is cyclical). The Hong Kong conglomerates seem to be a nice gateway to developing Asia, with reasonable corporate governance (compared to China, imo) and a stable mix of sustainable dividends and organic revenue growth. Hong Kong based firms also have the benefit of experience in these markets considering how long Hong Kong has been a financial and economic powerhouse in that region.
I do have this conglomerate in my portfolio for the long term. For me, it's value, for someone else i do not know. I do like your resume.
OFFER BY PT INDOFOOD SUKSES MAKMUR TBK IN RESPECT OF INDOFOOD AGRI RESOURCES LTD - UPDATE On 10 April 2019, the Company announced that the financial adviser to Indofood, a subsidiary of the Company, had announced that Indofood intended to make a voluntary conditional cash offer for all the IndoAgri Shares that Indofood and its related corporations and their respective nominees did not already own, being approximately 25.66% of IndoAgri’s issued shares (excluding IndoAgri Shares held in treasury). The definitions used in the Company’s 10 April 2019 announcement (the “ 10 April Announcement ”) have the same meanings when used in this announcement. On 24 May 2019, Indofood’s financial adviser announced the following updated information in relation to the Offer: (a) The closing date of the Offer will be extended from 5:30 p.m. (Singapore time) on 24 May 2019 to 5:30 p.m. (Singapore time) on 25 June 2019 or such later date(s) as may be announced from time to time by or on behalf of the Offeror. (b) As referred to in the 10 April Announcement, the offer price per Offer Share was subject to reduction by the amount of any distribution per IndoAgri Share paid by IndoAgri in respect of the Offer Shares after 10 April 2019 and before the settlement date in respect of the Offer. On 22 May 2019, IndoAgri paid its 2018 first and final dividend of SG$0.0025 (equivalent to approximately US$0.0018 or HK$0.0141) per Offer Share by reference to a record date of 9 May 2019. Accordingly, the offer price per Offer Share has been reduced from SG$0.28 (equivalent to approximately US$0.20 or HK$1.58) to SG$0.2775 (equivalent to approximately US$0.20 or HK$1.57). (c) Based on information provided to the Offeror, as at 5:00 p.m. (Singapore time) on 23 May 2019, the Offeror had received, pursuant to the Offer, valid acceptances in respect of 102,820,633 Offer Shares, representing approximately 7.37% of the total number of IndoAgri’s issued shares. (d) Accordingly, as at 24 May 2019, the Offer remains conditional upon the Offeror meeting the acceptance condition referred to in the 10 April Announcement. Unless indicated otherwise, in this announcement, translations of amounts in SG$ into US$ and HK$ have been made at the rate of US$1= SG$1.38 = HK$7.8 for illustration purposes only. chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/https://www.firstpacific.com/media/normal/16212_LTN201905241062.pdf
Metro Pacific Investments Corp., the Philippine venture of billionaire Anthoni Salim’s First Pacific Co., is preparing to kick off the sale of a stake in its hospital unit that could value the business at more than $2 billion, people with knowledge of the matter said. The Manila-listed conglomerate plans to formally start a sale process next month, according to the people, who asked not to be identified because the information is private. It is working with Bank of America Corp. to gauge interest from potential investors, which could include buyout firms and regional health-care companies, the people said. Metro Pacific is separately working with UBS Group AG on preparations for a possible IPO of the business as part of a so-called dual track process, one of the people said. The unit runs about 15 hospitals and clinics in the Philippines, according to its website. “The selldown process will start soon,” Metro Pacific Chairman Manuel Pangilinan said in a mobile-phone message. The company hasn’t yet set an asking price, he said. Representatives for Bank of America and UBS declined to comment. Metro Pacific Chief Financial Officer David Nicol said in March the conglomerate may raise 15 billion pesos ($288 million) to 20 billion pesos from selling a stake in the hospital business. The company was still evaluating if the fundraising would come from a private placement or IPO, and a deal could come late this year or early 2020, Nicol said at the time. Besides hospitals, Metro Pacific has interests in power, toll roads and water with holdings in Manila Electric Co., Metro Pacific Tollways Corp., Maynilad Water Services Inc. and Philippine Hydro Inc., according to its website. https://uk.finance.yahoo.com/news/metro-pacific-preparing-start-2-075725232.html
Duterte threatens Ayalas, Pangilinan after Manila Water arbitration win Manila Water's win against the government refuels President Rodrigo Duterte's determination to scrap the concession agreement of the Ayala-led company as well as that of Manny Pangilinan' MANILA, Philippines – Outraged that the government is being made to pay billions of pesos to water concessionaire Manila Water, President Rodrigo Duterte threatened the Ayala family and businessman Manny Pangilinan. Manila Water is a subsidiary of Ayala Corporation. Pangilinan's Metro Pacific Investments Corporation owns a controlling stake in the other water concessionaire, Maynilad Water Services. "If Ayala and Pangilinan are your friends, kindly tell them, hindi naman ako lumabas, kung may magyaya sa akin...'pag mag-abutan tayo maski ilang bodyguard, 'yung mukha mo, putang ina, kaya ko gawin 'yan," said Duterte on Tuesday, December 3, in Malacañang. (I don't go out but if someone invites me out...if we see each other, no matter how many bodyguards you have, I can ruin your face, son of a bitch.) "Hanapin mo nga si Ayala, puntahan ko (Look for Ayala, I'll go to him). They do not pay corporate income tax," said Duterte. He claimed that Manila Water passes on the burden of paying corporate income tax to water consumers, by imposing a fee for water treatment. In his newly sparked anger, Duterte revived his threat to scrap the concession agreements entered into by Manila Water and Maynilad with the Metropolitan Waterworks and Sewerage System, a government corporation. He wants a new agreement crafted. "I told [Finance Secretary Carlos Dominguez III] and [Solicitor General Jose Calida], craft a new contract that is really favorable to public, to government. Give it to them. 'This is the amended contract, accept it or nothing doing,'" said Duterte. Why is Duterte angry? The President is seething over the recent victory of Manila Water in its case against the government for preventing it from raising water rates in violation of the concession agreement. The Permanent Court of Arbitration (PCA) in Singapore ruled that the government has to pay Manila Water P7.39 billion for the company's losses from June 1, 2015 to November 22, 2019, and the amounts paid to the PCA and 85% of other claimed costs. Manila Water sought arbitration in 2015 after the government failed to honor its claim amounting to P79 billion from 2015 to 2017, as the latter did not allow the company to raise tariffs. https://www.rappler.com/nation/2463...yalas-pangilinan-manila-water-arbitration-win
Indonesian tycoon Salim wins close shareholder vote on controversial $3 billion deal HONG KONG (Reuters) - Indonesian tycoon Anthoni Salim narrowly won shareholder backing on Friday for a $3 billion takeover transaction between companies he controls, overcoming criticism about the deal's valuation and questions about corporate governance. First Pacific Co Ltd, Salim's holding company, said in a filing to the Hong Kong stock exchange that a takeover by its subsidiary Indofood CBP (ICBP) of Pinehill Company Ltd was approved by its independent shareholders at a special meeting where 52% of votes were cast in favour. ICBP is best known for the Indomie noodle brand and Pinehill is one of Indomie's distributors and manufacturers, in the Middle East and Africa. Salim, Indonesia's sixth-richest man with a net worth of $5.5 billion according to Forbes, owns 51% of Pinehill and also holds 44.3% of First Pacific's shares, according to corporate filings. ICBP's 2019 annual report says Salim controls First Pacific. The transaction, which needed a simple majority on Friday to pass, also needs approval of ICBP shareholders to proceed. Some First Pacific shareholders had earlier raised concerns about the $3 billion price ICBP was paying for Pinehill, saying it was too high. While Salim and his associates were not eligible to vote at Friday's meeting under Hong Kong's related-party rules as they are not considered independent shareholders, they can vote under Indonesian rules in ICBP's extraordinary general meeting (EGM). Some shareholders have said that raised governance questions. Those in favour of the transaction have said the takeover could boost ICBP's financial performance significantly. ICBP's EGM, which had been scheduled for July 15, was postponed because Indonesia's financial regulator said it needed to give shareholders additional information, according to announcements in local newspapers. https://finance.yahoo.com/news/indonesian-tycoon-salim-wins-close-072912966.html