Vol. XXII, No. 197 [ BusinessWorld Online ]
Monday, May 11, 2009 | MANILA, PHILIPPINES
BY KRISTINE JANE R. LIU, Reporter
Sicat is elected new PSE chairman
THE PHILIPPINE STOCK Exchange (PSE) might be the one to build the unified headquarters in Taguig City under a new proposal submitted to the bourse by property developer Ayala Land, Inc. on Friday.
"We had a meeting with Ayala Land [and the plan says] that PSE has the option to build the new exchange themselves [although] the developments will be linked," PSE Director Ismael G. Cruz said.
Under the plan, the unified stock exchange will be built at a new site just across the old one in 5th Avenue in Taguig City.
The new exchange, which will be called as the Philippine Stock Exchange Square, will be phase one of the project and will cover almost half of the total 5,700 square meters. The 15-storey high tower however will be connected by a bridge to phase two which will be the Ayala offices.
"The advantage of the new site is that there is going to be [two phases]. The exchange plans to continue the joint venture with Ayala Land and then proceed with the PSE building first and then phase two will follow later when market condition improves," Mr. Cruz said.
Unlike the old proposal where there is only one building, which will be built by the property company under a memorandum of agreement signed last year, Mr. Cruz said the new proposal allows PSE to proceed with the plan without waiting for "market conditions" to improve.
"If we go with this, [we can finish it and] it can be ready for occupancy in three and a half years or before 2014. There is no decision yet and the plan is still under evaluation by the building committee [but] we hope to finalize the decision in three months," he said.
Mr. Cruz said the exchange is very liquid with a cash position of P2.4 billion.
The PSE currently operates two trading floors in Metro Manila — one along Ayala Avenue, Makati City and another at the Ortigas Center in Pasig City. Mr. Cruz said they plan to sell these and use the proceeds to finance the new exchange.
Both stock exchanges have a combined value of P600 million to P800 million, he added.
As early as 2001, PSE has already announced its plan to transfer its base to Fort Bonifacio and was supposed to move in next year. A source said the plan has been delayed because of high construction costs which prompted Ayala Land to temporarily put on hold the project.
Meanwhile, the exchange has elected former investment banker Hans B. Sicat as its new chairman.
The 48-year-old Mr. Sicat replaced former Supreme Court justice Jose C. Vitug who had served chairman of the exchange since 2005.
Mr. Sicat currently sits as the president and chief executive officer of LegisPro Corp., a knowledge process outsourcing firm which he co-founded last year. Prior to this, he worked as an international investment banker for various predecessor companies of Citigroup and had served as the chief representative of Citigroup Global Markets Asia Pacific Ltd.
Joining him to the 15-member board is Mr. Lim who is serving his fifth term as PSE president since first elected in 2004.
Reelected to the board were Eddie T. Gobing, Ma. Vivian Yuchengco, and David O. Chua who will occupy the seats of broker director.
Newcomer Wilfred D. Son Keng Po, along with current board members Omelita J. Tiangco, Amor Illiscupidez and Anabelle L. Chua, will take the non-broker director positions. Husband of presidential daughter Luli Arroyo, John Aloysius S. Bernas, and Vicente L. Panlilo were elected independent directors.
Also reelected to occupy the four open-seat broker position are Ismael G. Cruz, Eusebio H. Tanco and Alejandro T. Yu while new entrant Eduardo L. David will occupy the open-seat, non-broker position. The Securities Regulation Code mandates that seven out of the 15 members should be brokers while the remaining is reserved for non-brokers.
"[We plan] to build up what the previous management has built up. We also want to be a world-class exchange. [The group] also wants to improve liquidity which is clear and dear to anyone’s heart. We are looking at it from a pragmatic point of view but also relative to the global situation that we have right now," Mr. Sicat said when asked about his plans for the bourse.
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