Gokongwei holding firm undergoes intergenerational shift

JG Summit (JGS), the diversified holding company of the Gokongwei family, is undergoing some significant intergenerational ownership changes, according to latest disclosures of the listed firm to the Philippine Stock Exchange.

The family patriarch, John L. Gokongwei, Jr.,  Chairman Emeritus and Founder of JGS, transferred 475,378,992 JGS shares at P68.4 per share. The equity securities transfers were done last October 28.

President & CEO Lance Gokongwei acquired 165.29 million JGS shares while JGS Director Robina Gokongwei-Pe  bought 105.31 million JGS shares.

Lance Gokongwei now owns 7.56 percent of JGS (541,838,575 shares) while Robina Gokongwei-Pe now has 2.5 percent (179,460,000 shares).

Their father's holdings in JGS is down to 2.8 percent (200,507,718 shares) from the 675,886,710 shares he owned a month before on September 30.

The John Gokongwei Brothers Foundation, Inc. owns 27.88 percent of JGS (1.997 billion shares). JGS has 7,162,841,657 issued and outstanding common shares.

Some major JGS stockholders own shares jointly with others and among the top shareholders are nominee corporations.

Coffee, biscuits, malls, and planes

JG Summit reported net income of P13.43 billion in the first half of 2015.

Cebu Air, operator of the Cebu Pacific airline, and Universal Robina Corporation (URC) each contributed 26 percent of that net income (P3.5 billion each).

Income from Meralco of P3.1 billion contributed 22 percent (P3.1 billion) and Robinsons Land gave 13 percent (P1.8 billion).

The latest venture into petrochemicals added 4 percent to the JGS net income.

JGS said in a recent disclosure that Cebu Pacific has 59.7 market share, a fleet of 55 aircrafts and seat load factor of 81.8 percent. Revenues were up 10 percent on 8 percent rise in passenger volume, while jet fuel cost fell 22 percent.

On the road ahead, JG Summit said URC seeks to protect its market share in coffee and enter the Indonesia biscuits markets, while Robinsons Land plans to open four new malls and expand one mall.

Up until 2017, Cebu Pacific has an order book for 59 aircraft consisting of 7 units of A320s, 30  of the A321 Neo, and 16 ATR 72-6002 (with option to buy 10 additional units).  — Earl Victor Rosero, GMA News