BUSINESS Genting exiting Newport World Resorts

By Jennifer Austria

GENTING HongKong Ltd. is selling its stake in integrated entertainment and casino Newport World Resorts, formerly known as Resorts World Manila, to long-time joint venture partner Alliance Global Group Inc. of businessman Andrew Tan.

AGI said in a disclosure to the stock exchange Tuesday subsidiary Newport World Resorts Properties Inc. signed a share purchase agreement for the acquisition of the shares of Star Cruises Philippines Holdings B.V., Asian Travellers Ltd. and Premium Travellers Ltd. in Travellers International Hotel Group Inc.

In Brief

PSE incurred P189-m tax deficiency in 2019—BIR

THE Bureau of Internal Revenue assessed the Philippine Stock Exchange with P189.2-million tax deficiency incurred in 2017.

The PSE said in a stock exchange filing Tuesday the assessed unpaid taxes stemmed from the alleged deficiencies in various taxes in the calendar year 2017 including income tax, value-added tax, expanded withholding tax, among others. It also includes compromise penalty and interests up to Sept. 30, 2023.

It said it would dispute the BIR findings and would take appropriate legal action for the cancellation of the assessment. No other details were provided.

Finance Secretary Benjamin Diokno said in a briefing the BIR “is just doing their job”.

Diokno said the government was putting pressure on the collecting agencies to achieve the programmed revenue collections. Jenniffer B. Austria

Maynilad replacing 477 km of old pipes over 5 years

WEST zone concessionaire Maynilad Water Services Inc. is replacing 477.2 kilometers of old, leaky pipes over the next five years in line with its program to upgrade the distribution system and reduce water losses.

The water company is allotting over P10 billion from 2023 to 2027 to replace damaged pipes in various portions of its concession area.

“When we took over Maynilad in 2007, the pipe network we inherited included the oldest water system in Asia. We are committed to upgrading our network for the benefit of our customers,” said Maynilad chief operating officer Randolph Estrellado.

Once completed, Maynilad would have replaced up to 3,643 kilometers of leaky pipes in its service area, which is 78 percent of the distribution system that the company inherited from the government upon reprivatization in 2007.

The company said that from January to April 2023, it replaced pipes in North and South Caloocan, Quezon City, Malabon, Navotas, Valenzuela, Manila, Pasay, Paranaque, Imus and Muntinlupa.

Othel V. Campos

Producer price index posted slower growth of 2.3% in April

THE producer price index for manufacturing, which measures the average change over time in selling prices received by domestic producers of goods and services, posted a slower annual growth of 2.3 percent in April compared to 2.5 percent in March and 6.3 percent a year ago, the Philippine Statistics Authority said Tuesday.

It said the slowdown was mainly due to the slower annual increase in the manufacture of food products industry division at 4.4 percent in April than 5.5 percent in March.

“The manufacture of food products contributed 44.6 percent to the slower annual growth rate of the PPI for manufacturing in April 2023. Out of the 22 industry divisions for manufacturing, manufacture of food products industry division has the highest weight in the computation of PPI,” the PSA said.

Other main contributors to the slower annual growth of PPI in April were the faster annual decrease in the manufacture of chemical and chemical products at -1.7 percent during the period from -0.05 percent in March 2023, and manufacture of basic metals at -4.9 percent in April 2023 from -3.4 percent in the previous month. Julito G. Rada and Adams Properties Inc., AGI said.

TIHGI owns and operates Newport World Resorts in Pasay City. The ultimate parent entity of the sellers is Genting HongKong which is a holding company that operates cruise and resort businesses.

Upon completion of the transactions, Genting HongKong Ltd. will cease to hold a stake in TIHGI, Westside City Inc.

The Genting HongKong group owns a 40-percent stake in TIHGI, while AGI holds the remaining 60 percent.

No other details were provided including the acquisition cost and timetable for the closing of the transactions.

TIHGI rebranded Resorts World Manila to Newport World Resorts last year as the company aggressively expands the complex with the addition of new hotels, gaming spaces, dining and retail establishments.

Newport World Resorts is a pioneer in integrated resorts development as it started operations in 2009. The property is strategically located right across Ninoy Aquino International Airport Terminal 3. AGI, which has interests in property development, liquor manufacturing and quick service restaurant, aside from resorts and casino development, saw profit rise 20 percent in the first quarter to P4.7 billion from P3.9 billion a year ago as consolidated revenues climbed 34 percent to P50.3 billion from P37.5 billion, with all major business segments delivering creditable results.

TIHGI saw revenues soar 63 percent in the first quarter to P7.9 billion as operations normalized to pre-pandemic state.

Gross gaming revenues improved 36 percent year-on-year, while promotional allowance rose 7 percent. This resulted in net gaming revenue growth of 56 percent to P6.1 billion in the first quarter, AGI said.

Non-gaming core revenues from ho- tels, food, beverage and other operating income nearly doubled to P1.8 billion from P900 million a year earlier, following the increase in number of mall goers, hotel occupancy, corporate events and MICE activities.

Hotel occupancy rates at the five hotels in Newport ranged from 66 percent to 85 percent in the first quarter, according to AGI.

TIHGI earlier announced that it is moving its 2023 annual stockholders meeting originally scheduled on the second Friday of June to a later date within the year.

It said the postponement would afford the company sufficient time to finalize its agenda and prepare all reportorial requirements, including its annual report.

By Othel V. Campos

UNIVERSAL Robina Corp. said

Tuesday it is acquiring the idle sugar milling machinery and equipment of Central Azucarera Don Pedro Inc.

The assets will be used to expand the capacity and improve the sugar recovery process at URC’s sugar mill in Balayan, Batangas, the company said in a statement.

POWER SUPPLY DEAL. Officers of TeaM (Philippines) Energy Corp., a subsidiary of TeaM Energy Corp., and Kratos RES Inc. sign a two-year energy supply deal at the TeaM Energy corporate office in Bonifacio Global City, Taguig. Under the agreement, TPEC will provide the power requirements of several establishments under the Villar group of companies including ALLHome, VistaMall, Starmall and AllBuilders. Leading the contract signing are TPEC president Gen Takahashi (six from left) and KRI operations head Jose Rommel Orillaza (first from left). Takahashi thanked KRI for the trust and underscored TPEC’s commitment to providing reliable, cost effective energy to support the continued success of KRI and the Villar group.