Game changers of business

The children of George Ty of GT Capital — Arthur, Alfred, Alesandra and Anjanette — succeeded their father, who built GT into a major conglomerate.

Young bloods now dominate Philippine business as a result of a confluence of events, which are the deaths of the patriarchs of investments and the rise of self-made entrepreneurs.

Five long-time members of the country’s richest passed away since Forbes last drew up its richest list in August 2018.

A new class of second-generation successors, thus, secured spots on this year’s list. “The transition comes at a challenging time, amid rising concern of a global recession,” according to Forbes.

The transformation also appears symbolic as the Philippines touts its demographic dividend in which it is among countries in the Southeast Asian region with an abundant supply of labor in contrast to its neighbors which are hobbled by an aging population.

The children of the late Henry Sy best illustrate this shift. With a combined net worth of $17.2 billion (P860 billion) emanating from the country’s biggest conglomerate, SM Group, the six siblings made the list on top, which their father Henry Sy Sr. held for 11 consecutive years.

The top 10 richest in the Philippines, according to Forbes, are the Sy family; Manuel Villar, $6.6 billion (P330 billion); John Gokongwei Jr, $5.3 billion (P265 billion); Enrique Razon Jr., $5.1 billion (P255 billion); Jaime Zobel de Ayala; $3.7 billion (P185 billion); Lucio Tan, $3.6 billion (P180 billion); Tony Tan Caktiong, $3 billion (P150 billion); Ramon Ang, $2.8 billion (P140 billion); Ty siblings, $2.6 billion (P130 billion) and Andrew Tan, $2.55 billion (P127.5 billion).

The children of George Ty of GT Capital — Arthur, Alfred, Alesandra and Anjanette — succeeded their father, who built GT into a major conglomerate, with interests in automobiles, banking, insurance, power generation and real estate.

The Campos kids — Jocelyn, Joselito and Jeffrey — replaced the late family matriarch Beatrice Campos. They debuted on the list at 23rd.

Their $650 million (P32.5 billion) fortune stems from pharmaceutical giant Unilab. Jocelyn, the eldest of the three, is now chairman of the company co-founded by their late father Jose Campos.

Heirs of Gilberto Duavit and Jon Aboitiz weren’t wealthy enough to make the $130 million cutoff individually, according to Forbes.

Among this year’s newcomers were three aggressive turks. Antonio Lee Tiu came in at 49th, with a net worth of $135 million (P6.75 billion) as shares of AgriNurture, the agri-products company he founded 22 years ago, rose steadily over the past three years.

Logistics and energy tycoon Dennis Uy debuts on the list after net assets of his Udenna group rose 28 percent in 2018. Uy is awaiting approval for the backdoor listing of Udenna at the Philippine Stock Exchange.

Among the biggest riser in the list is Davao-based diversified trader Uy whom Forbes described as “a man in a hurry.”

Uy is founder of Udenna, a conglomerate with interests spanning petroleum, oil and gas, shipping, logistics, real estate, education and gaming.

Apart from Udenna, his fortune also comes from stakes held in public companies Phoenix Petroleum Philippines and Chelsea Logistics and Infrastructure.

Udenna has proposed to list in the Philippine Stock Exchange through a share swap with ISM Communications. The plan has been submitted to the bourse and the Securities and Exchange Commission and is awaiting approval.

He also formed the Mislatel Consortium which, in partnership with China Telecom, was named the third telecommunications player and is now referred to as Dito Telecommunity.

Through Udenna, he has, in just a few years, bought stakes in more than 50 companies. He is among the youngest in the list at 46, with an estimated net worth of $660 million (P3.3 billion).

According to Forbes, Uy’s ascent began in 2002, when he founded Phoenix Petroleum, growing it into the Philippines’ largest independent fuel retailer.

“We disrupted petroleum. And maybe now telco,” he said, referring to Dito Telecommunity.

Dito Telecommunity won in July a license to offer nationwide cellular service and crack the existing duopoly of PLDT Inc. and Globe Telecom.

Udenna posted a profit of P2.6 billion last year as sales jumped 86 percent to P95 billion.

Among the list’s topnotchers is Ang, the president and chief operating officer of conglomerate San Miguel Corp. (SMC), who sees opportunity from the crisis facing the country.

Ang made a stir recently as a result of bold inroads in infrastructure, including the proposal for a New Manila International Airport in Bulacan to be built by SMC unit San Miguel Holdings Corporation (SMHC) beginning this year. It is considered the company’s “single biggest investment” in the Philippines.

The NMIA, with a contract worth P735.6 billion, he noted, is a “landmark Filipino project” with all costs shouldered by the firm.

“It will be built at no cost to government and with no subsidies or guarantees of any kind,” Ang said.

The airport is seen as a long-term solution to the country’s air and land traffic woes.

Part of the NMIA’s contract is an 8.4-kilometer tollway connecting the airport to the North Luzon Expressway (NLEX) in Marilao, Bulacan, which would link the airport to Metro Manila with ease.

Also part of the project is a 10-lane elevated freeway that will pass through the gridlocked EDSA.

The ongoing China-US trade war has left billionaire Razon’s cargo terminal business, International Container Terminal Services Inc. (ICTSI) blissfully unscathed.

Net profit in the first half climbed 42 percent to $129 million (P6.45 billion) as revenue rose 14 percent to $752 million (P37.6 million) amid increased cargo volumes for the company’s operations in Australia and Mexico and the opening of new terminals in Papua New Guinea.