Overview
Aboitiz
Equity Ventures, Inc. (AEV), is the public holding and management company of
the
Aboitiz
Group, one of the largest conglomerates in the Philippines. Incorporated on
September 11, 1989, the Company was originally known as Cebu Pan Asian
Holdings, Inc. Its name was changed to Aboitiz Equity Ventures, Inc. on
December 29, 1993, and its ownership was opened to the general public through
an Initial Public Offering (IPO) of its stocks in 1994.
Business
Revenue
contribution by business group (Million Pesos)
|
2016
|
2015
|
Power
Distribution &
Generation
|
89,163
|
76%
|
85,174
|
76%
|
Food
Manufacturing
|
23,702
|
20%
|
22,768
|
20%
|
Financial
Services
|
550
|
0%
|
307
|
0%
|
Real
Estate
|
2,441
|
2%
|
2,733
|
2%
|
Parent
& Portfolio
|
1,350
|
1%
|
1,350
|
1%
|
AEV’s
core businesses can be grouped into six main categories: power generation,
distribution, and retail electricity supply; financial services; food
manufacturing; real estate; infrastructure; and portfolio investments.
AEV’s power business
unit,
Aboitiz Power Corporation (AP), was incorporated in 1998. AboitizPower is a
publicly listed holding company that, through its subsidiaries and affiliates,
is a leader in the Philippine power industry and has interests in a number of
privately-owned generation companies and distribution utilities.
AEV’s financial
services group
is composed of Union Bank of the Philippines (UNI) and its subsidiaries, and
PETNET, Inc. (PETNET, 51% by AEV), a money-transfer company. UnionBank is a
publicly listed universal bank. It was incorporated on August 16, 1968 and
was originally known as Union Savings and Mortgage Bank. UnionBank became the thirteenth and youngest
universal bank in the country after operating as a commercial bank for only
ten years.
In January 2013, the Company and its subsidiary,
Pilmico Foods Corporation (Pilmico) accepted the offer of UnionBank to
purchase all of their outstanding shares in City Savings Bank, Inc.
(CitySavings), a Cebu-based thrift bank. PETNET is the largest Western Union
agent network in the Philippines. AEV acquired 51% equity interest in PETNET
on June 1, 2015.
AEV’s food Business
Unit,
Pilmico (100%), is one of the country’s largest manufacturers of flour, and ranks
among the top three domestic flour producers in terms of sales. To diversify
the cyclical nature of its existing products, Pilmico entered the swine
production and animal feeds businesses in 1997.
In
2014, AEV completed its first international acquisition through Pilmico
International Pte. Ltd. (Pilmico International), the Company’s
Singapore-based Affiliate. Pilmico International acquired 70% of the total outstanding
shares in Vin Hoan 1 Feed JSC (VHF), one of the largest aqua feed producers
in Vietnam. This allowed the Food Group to expand its feeds business in
Vietnam and build its market base internationally. After completion of the
acquisition, VHF was thereafter renamed as Pilmico VHF. Pilmico International
has the obligation to purchase the remaining 30% of the outstanding shares of
Pilmico VHF within a period of five years. In October 2016, Pilmico
International purchased 100% ownership interest in Pilmico Viet Nam Trading
Company Limited (Pilmico Vietnam Trading). Pilmico Vietnam Trading will be
the vehicle used for the importation and distribution of Pilmico products in
the Vietnam market.
Aboitiz Land, Inc.
(AboitizLand, 100%), the real estate arm of the AEV Group, was
incorporated on June 2, 1964 under the name Central Visayan Warehousing Co.,
Inc. AboitizLand remains one of the country’s most trusted names in real
estate development, with investments in residential, commercial and
industrial developments, and property management in Cebu after two decades in
operation. The Company completed the acquisition of 100% ownership of
AboitizLand from Aboitiz & Company, Inc. (ACO), at an acquisition cost of
₱3.2 bn on November 19, 2012.
AEV’s first foray
into infrastructure involves the acquisition of the Lafarge S.A.'s
Philippine assets through AEV CRH Holdings, Inc. (AEV CRH), CRH Aboitiz
Holdings, Inc. (CRH Aboitiz) and their respective Subsidiaries. In addition
to this, Apo Agua Infrastractura, Inc. (Apo Agua), a joint venture company
with J.V. Angeles Construction Company (JVACC), is the project company for
the supply of treated bulk water to the Davao City Water District (DCWD).
Business
Development
To
meet the demands of the Company’s growing business, AEV transferred its
corporate headquarters from Cebu to Metro Manila in 2013.
In
January 2014, AboitizLand and Ayala Land Inc. (Ayala Land) entered into a
joint venture for the development of a 15-hectare property located in Mandaue
City, Cebu.
In
September 2015, the Company and CRH plc through their investment vehicles
closed the acquisition of the Lafarge S.A.'s Philippine assets which includes
four Luzon-based cement manufacturing plants, an integrated plant in Mindanao,
a cement grinding mill in Cebu and associated limestone quarries.
Starting
2017, AEV segregated its infrastructure investments into a separate entity.
Aboitiz Infracapital, Inc. (Aboitiz InfraCapital) (formerly AEV Infracapital,
Inc.) was incorporated on January 13, 2015 as the investment vehicle for all
future infrastructure related investments of the Aboitiz Group.
Subsidiaries /
Associates / Affiliates / Joint Ventures
Aboitiz Power Corporation (AP, 76.88%)
Incorporated
in 1998, AboitizPower is a publicly listed holding company that, through its subsidiaries
and affiliates, is a leader in the Philippine power industry and has
interests in a number of privately-owned generation companies and
distribution utilities. AEV owns 76.83% of the outstanding capital stock of AboitizPower
as of March 31, 2017. There are a lot of companies under AP.
UnionBank (UBP,
48.83%)
AEV’s
financial services group is composed of UnionBank, a leading universal bank
in the country;
UnionBank’s
Subsidiary, CitySavings, a thrift bank based in Cebu City; and PETNET, a
money transfer services company.
Pilmico Foods Corporation (100%)
Pilmico,
the food arm of the Aboitiz Group, is one of the largest flour manufacturers
in the country, and is ranked among the top three domestic flour producers. Pilmico
is primarily engaged in the manufacture and sale of flour, feeds, and their
by-products. It has a wide network of distributors and dealers located in
major cities of Manila, Cebu, Davao, Iloilo, Bacolod and Cagayan. Pilmico’s
key raw materials are imported from the U.S.A., Canada and Australia. Pilmico
is operating Feed Mill 1, 2 and 3 to produce high quality animal feeds. This allowed
Pilmico to meet the growing demand for animal feeds in the Visayas and
Mindanao regions, to achieve operating cost efficiencies and yield
improvements. Anchoring on its core strength as a flour miller, Pilmico has
taken the opportunity to grow the flour business internationally. In June
2014, the Company established its first Southeast Asian representative office
in Jakarta Selatan, Indonesia, followed by the creation of another
representative office in Ho Chi Minh City, Vietnam in March 2015. Some
related companies are Pilmico Animal
Nutrition Corporation (PANC), Pilmico International Pte. Ltd. (Pilmico
International), Pilmico VHF Joint Stock Company (Pilmico VHF), Located in
Vietnam.
Cebu Praedia Development Corporation (CPDC, 100%)
Incorporated
on October 13, 1997, CPDC is engaged in leasing of properties located in the
cities of Makati and Cebu.
Aboitiz Land, Inc. (AboitizLand, 100%)
Incorporated
on June 2, 1964, AboitizLand (formerly Central Visayan Warehousing Co., Inc.)
is the real estate arm of the Aboitiz Group. It is engaged in the design and
development of distinct communities for residential, industrial, and
commercial use. AboitizLand acquired a
LimaLand, the owner and operator of the Lima Technology Center (LTC), a
590-hectare PEZA registered industrial park located in Lipa, Batangas. In 2016, AboitizLand launched The Outlets
at Lipa. It is a 9.3 hectare commercial development located inside the LTC. Lima Water Corporation (LWC) is a
wholly owned Subsidiary of LimaLand.
Aboitiz InfraCapital, Inc. (Aboitiz InfraCapital, 100%)
Inc.
Aboitiz InfraCapital is a wholly owned Subsidiary of AEV and starting 2017,
was positioned as the investment vehicle for all future infrastructure
related investments of the Aboitiz Group.
Cebu Industrial Park Developers, Inc. (CIPDI, 60% by AboitizLand)
CIPDI
is a joint venture company between AboitizLand (60%) and the Kambara Group
from Japan. It operate 282-hectare industrial zone in Cebu.
CRH Aboitiz Holdings, Inc. (CRH Aboitiz, 45%)
CRH
Aboitiz acquired equity 100% interests in Republic Cement Services, Inc.
(formerly
Lafarge
Cement Services Philippines, Inc.)
AEV CRH Holdings, Inc. (AEV CRH, 60%) owns 99.09% of Republic Cement & Building Materials, Inc. which
owns Republic Cement Mindanao, Inc. and Republic Cement Iligan, Inc.
Republic Cement and Buildings Materials, Inc. (RCBM)
RCBM
(formerly Lafarge Republic, Inc.) is primarily engaged in the manufacture, development,
exploitation and sale of cement, marble and all other kinds and classes of building
materials, and the processing or manufacture of materials for any industrial
or commercial purposes. On January 14,
2016, RCBM filed a Petition for Voluntary Delisting with the PSE, which was
approved by the PSE Board of Directors, effective on April 25, 2016.
AEV Aviation, Inc. (AEV Av, 93.82%)
AEV
Av holds AEV’s aviation assets, including the corporate aircraft and
accompanying support facilities.
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