Ramon S. Ang, left, and Eugenio “Gabby” Lopez III. Ang has acquired a 25.68 percent stake in Lopez Inc. from Crème Investment Corp., representing Lopez’s family branch.
Investment made in personal capacity; remaining Lopez family branches retain control
MANILA — Businessman Ramon S. Ang has acquired a 25.68 percent stake in Lopez Inc. from an investment company representing the family branch of former ABS-CBN chairman Eugenio “Gabby” Lopez III, bringing one of the Philippines’ most prominent corporate executives into the privately held parent of the Lopez business group.
Crème Investment Corp. sold its entire stake in Lopez Inc. to Ang, according to corporate disclosures and statements released Monday.
San Miguel Corp., where Ang serves as chairman and chief executive officer, said Ang made the investment in his personal capacity through Ilumina Investment Holdings Inc., a holding company he wholly owns. The transaction was not an acquisition by San Miguel.
The purchase price and other financial terms were not disclosed.
The 25.68 percent holding gives Ang a significant minority position in Lopez Inc., but does not give him control of the company. The remaining Lopez family branches continue to hold the controlling majority.
Lopez Inc. is the ultimate parent company behind major interests associated with the Lopez Group. Through its corporate holdings, the group has interests in companies including First Philippine Holdings Corp., First Gen Corp., Rockwell Land Corp. and ABS-CBN Corp., spanning energy, property, media and other businesses.
The sale was also reflected in a regulatory filing by First Philippine Holdings. In an SEC Form 17-C filed with the Philippine Stock Exchange on Aug. 10, FPH disclosed that director Roberta L. Feliciano had resigned effective Aug. 9 because of Crème Investment Corp.’s sale of its shares in Lopez Inc.
Gabby Lopez said family considerations were among the reasons for the transaction. He said the investment could help move the family toward resolving disagreements that have affected both relatives and their companies, while allowing his branch to direct resources toward businesses consistent with its own priorities.
Lopez also expressed confidence in Ang as a partner, citing the longstanding relationship between their families.
Ang, for his part, said his relationship extends across the different branches of the Lopez family and emphasized that the family shareholders retaining the controlling majority would continue to lead Lopez Inc.
His investment comes after months of publicly aired disagreements within the Lopez family involving corporate governance and major business decisions.
The dispute became public earlier this year after a majority of the Lopez Inc. board moved to remove Federico “Piki” Lopez as president and chief executive. Federico Lopez challenged that action in court. The resolution seeking his removal was subsequently withdrawn, although disagreements over governance and transactions involving companies within the group continued publicly.
The differing sides have disputed the circumstances and motivations surrounding some of those corporate decisions.
On Monday, Federico Lopez welcomed Ang’s investment rather than opposing it. He said Ang’s business experience and expertise could bring value to Lopez Inc. and described the new partnership as consistent with the Lopez family’s history of working with outside investors and institutions.
He also said the transaction could help address issues that have affected the family and its businesses.
Ang’s entry therefore represents a major change in the ownership of the privately held Lopez parent company, but not a transfer of control. It introduces a prominent outside shareholder while leaving majority ownership with the remaining Lopez family branches.
