‘Killing the dead.’ Forum Pacific Inc. (FPI) is dead—or almost dead. As of December 31, 2006, it had piled up a deficit of P712.916 million, which dropped to P705.234 million on 31, 2008. Businessman William Gatchalian, who controls the company, is trying to resuscitate it, a move that may not be very easy because trading on FPI shares remains suspended after failing failed to comply with the rules on reportorial requirements implemented by the Securities and Exchange Commission (SEC). FPI shares were last traded on May 17, 2007, when it closed at P0.28. While FPI is trying to update its files, it also has to contend with the SEC, which would not let it off the hook. It was only right for the Gatchalian-controlled firm not to fight the regulators. No one wins against the SEC, which is always right as far as the P1.234-million penalty it has imposed on FPI for continued disobedience is concerned. If Gatchalian does not pay, Forum Pacific will not be able to get back its permit to sell securities that was revoked by the corporate regulator. That’s how strict the corporate watchdog is. Hopefully in dealing with their “subjects,” the SEC is not being selective in applying the law. Its officials have learned that one of the more effective ways to show they are being assertive to hit errant corporations where it will hurt them most—in their pockets. 

IPO proceeds. Splash Corp. told regulators in a filing posted July 8 on the web site of the Philippine Stock Exchange that the net proceeds of P1.558 billion from the sale of 223.848 million shares remain intact. “No disbursements from the said proceeds have been made for the quarter,” the company said. Splash reported net income of P44.655 million in the first quarter, up 13.687 percent from P39.279 million in the same period in 2007. As of March 31, it had retained earnings of P353.058 million. Its cash and cash equivalents surged to P2.044 billion from P235.566 million because of proceeds from the initial public offering. But the company said it has plans for the use of this money. “Negotiations for brand acquisitions are ongoing,” Splash said. “Disbursements for the continuing research and development on a new line of health and wellness products will also be made during this third quarter of the current year.”

Acquisition. BPI Capital Corp. bought on July 1 the entire holdings of Santiago Land Corp. totaling 253.603 million shares in Cebu Holdings Inc. (CHI) at P2.16 per share or P547.782 million. With the acquisition, BPI Capital joined sister company Ayala Land Inc., which owns 907.35 million CHI shares, or 47.26 percent, in the list of Cebu Holdings’ stockholders which include PCD Nominee Corp., which holds 258.811 million CHI shares, or 13.48 percent, for foreigners and 225.599 million shares, or 11.75 for Filipinos. Of the foreign-owned shares in the name of PCD, Hongkong and Shanghai Banking Corp. holds 163.514 million CHI shares, or 8.52 percent. First Metro Investments Corp. owns 186.659 million shares, or 9.72 percent. Aberdeen International Fund Limited of Hong Kong holds 99.646 million shares, or 5.1896 percent.

Ownership update. As of June 30 San Miguel Corp. (SMC) Retirement Plan owned 563.564 million shares in SMC. Of these, it directly owned 517.767 million shares—consisting of 405.959 million SMC A shares and 111.808 million SMC B shares.

LG takes on mobile-phone giants

Korean manufacturer LG Electronics Inc. takes on the mobile giants with the launch of its LG Black Label series.

Waterfront bags Mimosa contract

THE Gatchalian-led Waterfront Philippines Inc. (WPI) won the right to lease, develop, operate and manage the 215-hectare Mimosa Leisure Estate in Clark, Pampanga.

PSE wants mandatory dividend declaration rule

THE Philippine Stock Exchange (PSE) is studying plans to inject new provisions in the Code of Corporate Governance, specifically the inclusion of a mandatory dividend policy.

Google unveils lively virtual world

LOS ANGELES—As if Google didn’t have a strong enough hold on the planet, Tuesday it has launched its own world—a virtual world, to be exact. Lively, which Google likes to call a “virtual experience,” allows you to create an avatar, decorate your own virtual room, invite friends to your room and do things you’ve always dreamed of, like blow up oil barrels on a deserted island.

Yahoo! signs three local reseller deals

Yahoo! Philippines has inked three initial partnerships with Admax Network, Havoc Digital Media and web portal Yehey under its “authorized reseller” medallion program.

Due Diligencer: ‘Killing the dead.’