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STI, Ayala Land in joint-venture discussions

Published on 18 February 2013 [ manilatime.net ]
Written by MADELAINE B. MIRAFLOR REPORTER
The owner of listed STI Holdings Inc. and business tycoon Eusebio Tanco is in talks with Ayala Land Inc. (ALI) and other companies for joint ventures, which mainly involve Tanco’s personal business and not those that are listed.
Tanco said in an interview with reporters that he is in “exploratory” discussions not only with Ayala but also with other listed companies, specifying that none of the listed companies he is part of are involved in the talks.
“Everything is exploratory, many things. Basically, this is non-listed so I’m exploring with the Ayala to tie up with some properties,” Tanco said.
“I’m talking to other parties too. [This is for businesses like] standard resort type, commercial, but I’m not talking only to Ayala,” he reiterated.
In terms of the plans for a joint venture, Tanco said that his discussions with other companies vary.
“The joint venture can be different, some of it I have plans, some of it they have plans. We have to work as a team than anything,” he added.
Tanco also said that he has been in talks with these companies for a relatively long time.
He indicated that he is planning to tie up with firms that can assist him in his plans to put-up mixed-use developments around STI schools where he has land holdings.
“STI is putting up a lot of schools, and we are planning to do community developments around the school,” he said.
Of all his diversified properties around the country, Tanco specified that the smallest would be one hectare, while the usual allocation for schools is 5,000 square meters.
Back to manufacturing
Tanco, meanwhile, also expressed his intentions to go back to the manufacturing business, and this is only if the electricity rates in the country will go down.
“We came from a manufacturing company. We’re no longer in manufacturing concern. But if only we can bring down power rates because our power rates is now one of the most expensive in the world,” he mentioned.
“If we can bring it [power rates] down, I think our level is pretty competitive, everything else follows. If we can bring the power rates down, we may have the chance to get back to manufacturing,” Tanco added.
He mentioned that that one of the biggest factors to consider in a production business are power rates. The country’s manufacturing sector is beset by many challenges besides high power rates, like poor infrastructure and labor mismatch.
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