Monday, December 19, 2011

PSE set to extend trade hours

Skeptics told to have faith in board’s decision

By: Doris C. Dumlao
Philippine Daily Inquirer
The Board of the Philippine Stock Exchange last week affirmed a plan to further extend trading hours until 3:30 p.m. starting Jan. 2 next year, as it aims to align the local bourse with regional markets.

PSE chair Jose T. Pardo told reporters Friday night that the board met last week to discuss a proposal made by some brokers who did not wish to further extend trading hours.

The PSE currently trades from 9:30 a.m. to 1 p.m. Prior to October, trading hours only lasted until 12:10 p.m.

Under the extension schedule, the trading hours will be extended further into the afternoon with a lunch break in between. On Jan. 2, trading will open at 9:30 a.m. until noon. In the afternoon, trading will resume at 1:30 p.m. and close at 3:30 p.m.

Pardo said many trading participants had signed a petition for the PSE to scrap the second phase of trading extension. Last week, they even sent representatives to meet with members of the PSE board and present their arguments.

But the PSE chairman said he advised brokers to “have faith.”

“We have to identify with the rest of the world,” Pardo said.

The PSE chairman cited his own experience as an entrepreneur when he helped set up the 7-Eleven convenience store network in the Philippines in the 1980s.

“It’s a decision we had to make. Our business model had to be 24 hours so, even without volume, we just have to be consistent with the rest of the world.”

The PSE chairman added that volume couldn’t be summoned by a “magic wand” and was instead something to work hard for.

The trading extension is intended to attract more investor interest and prepare for cross-border trading with the rest of Southeast Asia.

PSE president Hans Sicat had said that the move would align the local bourse with those in the region and should be seen as a positive signal that the local market was ready to take off.

Afternoon trading is also expected to boost liquidity as it enhances the ability of investors to react to developments in other markets in different time zones.

The stock markets of four Southeast Asian nations—the Philippines, Malaysia, Singapore and Thailand—have made plans to integrate their stock markets to turn the region into a magnet for global portfolio investments. But there’s no time-bound deadline for the integration to push through, Pardo said.

The PSE has already taken steps toward integrated regional trading with its migration to NYSE Technologies’ NSC V900 platform—an innovative trading infrastructure that boosts the product range, trading performance and volume capacity of the local bourse. The system, earlier rebranded as PSEtrade, allows PSE to handle larger trading volume and process trades 10 times faster than the previous system.

http://bit.ly/vzPFQI

Sunday, December 11, 2011

P&G head fights pressure with calmness

By: Abigail L. Ho
Philippine Daily Inquirer

SIDDIK Tetik poses with P&G
products manufactured and sold
in the Philippines.
In the fast moving consumer goods industry, pressure is a daily fare and stress in nothing out of the ordinary.

Different brands fight over the Filipino consumers’ scarce cash on a daily basis and market leadership can change hands in the blink of an eye if a brand gets too complacent.

Despite its strong 76-year presence in the country, P&G Philippines, one of the world’s biggest consumer goods companies, experiences the same daily stress every day. But looking at president and general manager Siddik Tetik, one will not be able to tell that that is the case.

With his calm demeanor and almost permanent smile, one would think he is a vacationing expat instead of the man at the helm of one of the country’s most successful companies. His secret: Calmness at all times.

I’m balanced and calm. Even in tough situations, I keep my calmness and never show panic to my team. It allows me to think (in a healthy manner),” he tells SundayBiz. “My calmness—people appreciate this. Even when I face big issues, I don’t react severely.

Sometimes people react without thinking, and that causes damage. If you’re a smart person, you will stop and think about the consequences of your actions before reacting and making decisions.”

When he finds himself in particularly nasty situations, he relates that he usually writes his thoughts down, instead of directing venomous comments at a particular person. He holds back unbecoming retorts and contents himself with blowing off steam by writing e-mails that he never sends.
THE PRESIDENT and general manager
of P&G Philippines teaches young
schoolchildren the proper way
to wash hands with soap for
Global Handwashing Day.

After typing away on his computer and rereading what he has written, he says he has already calmed down enough to face the people that he has to face and to make whatever decision has to be made.

This is one trick that he says he shares with his people, knowing how stressful the environment P&G is operating in.

Work-life balance

Striking a healthy balance between work and personal life is another thing that he strives to achieve, and wants to impart to his people as well. For someone who is leading a consumer goods giant operating in a fiercely competitive environment, Siddik can hardly be described as a workaholic.

He usually wakes up at between 6:30 and 7 a.m. and uses the first few hours of his day to just relax and prepare his mind for the work day.

“I try not to think too much. I have my breakfast, I take my coffee or tea, and have some time for myself. There should be no discussion of major decisions before 10 a.m. People in the office know this, and even my wife knows this. Unless something is absolutely crucial, it has to wait after 10 a.m.,” he relates.

By 6:30 p.m., he is usually out of the office and either out with friends or at home with his family.

TETIK volunteers with other P&G
employees in packing school supplies
for the company’s Handog Edukasyon
program.
He is also not one for making plans as far as his personal time is concerned. He prefers to be spontaneous and do things when he feels like doing them. The simplicity of life in the Philippines, he says, suits his calm personality well.

I don’t like programming my personal life. I like to be spontaneous. My wife likes to program our lives, like when we should take vacations, but I prefer surprises,” he says.


From rocks to razor blades

Even his being in the consumer goods industry was totally unplanned. A geology major and a son of a military man who had no idea whatsoever about business, Siddik literally had to learn his way to the top, starting from a job in sales at the time when Western brands were just making their way into Turkey.

He relates that after rendering mandatory military service in Northern Cyprus, he met some entrepreneurs in Turkey who offered him a job. Despite his lack of experience, he took the job and absorbed everything like a sponge.

Learning became a daily exercise for him back then—something that he says is still true for him today. For his work in sales, it also helped that he had a good command of the English language and he had a great personality fit for the job.
SIDDIK Tetik, wife Neslihan,
daughter Bengi, and son Birkin

But I never knew that. It’s really difficult to decide exactly what you would do in your work life while you’re still in university,” he says. “During my early days, I started working based on the trust of people and whatever skills I had that I wasn’t even aware of. I then built my capabilities on observing—I observed business models in Europe and East Asia and learned from our visitors. I did a lot of self-learning.”

There was even a point when he felt like giving up, but decided to push on anyway. The decision to stay could very well be one of the best ones he had ever made. After spending several years holding senior positions at Gillette, he became a key P&G executive when the latter acquired the former.

At P&G, his propensity to learn was put to the test once again, as it was a new culture that he had to familiarize himself and adapt with. As with all other aspects of his life, he did that a step at a time.

Even now, as head of one of P&G’s most important markets in Asia, he says he continues to learn, with his personal and career goals fixed on the short term rather than the long term.

Life is interesting. If you plan too far ahead, it will be limiting. Have short goals rather than long ones. Build your treasures as you go. Being a CEO is a good dream to have, but you have to have shorter goals so you can better enjoy life and be happy,” he relates.

Set two or three-year challenges. When you overcome those challenges, that will give you much needed confidence to move to another level and set new goals. Always assess yourself and extend your vision of your life based on that,” he further says.

The passion to grow and win should always be there, he says, as this fuels a person’s success. He also swears by his mantra of never ceasing to learn. This, on top of his calm and rational thinking, after all, is what has propelled him to where he is today.


http://bit.ly/uKl7J6

Thursday, December 01, 2011

Jollibee completes sales of coffee and gelato business

December 1, 2011 12:08pm

Jollibee Foods Corp., the country's largest owner and operator of fastfood restaurants, has completed the sale of Caffe Ti-Amo, a Korean restaurant brand to CafeFrance Corp.

In a statement to the Philippine Stock Exchange on Thursday, Jollibee Foods said subsidiary Coffeetap Corp., which held the Caffe Ti-Amo franchise, completed the sale on November 30 and also terminated its franchise agreement.

The sale of Caffe Ti-Amo came just more than a year after acquiring its master franchise.

Jollibee Foods earlier said that Coffeetap would sell the assets of Caffe Ti-Amo, a coffee and gelato business, to CafeFrance for P20 million to be paid in cash.

CafeFrance is the same company that bought the assets of 'Delifrance' from JollibeeFood's subsidiary, Fresh N'Famous Foods Inc. last year.

In May 2010, JFC announced that it signed a joint venture agreement with local entrepreneurs that gave it entry into the coffee and gelato business. This joint venture became the master franchisee in the Philippines of Caffe Ti-Amo, which has two stores presently.

"JFC's divestment of its 'Caffe Ti-Amo' business is in anticipation of the commencement of new businesses, San Pin Wang in Guang Xi Province in the People's Republic of China, and the joint venture with Viet Thai International Joint Stock Company in Vietnam and other parts of Southeast Asia," the company had said.

Jollibee Foods, through its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd., signed an agreement to enter into a joint venture with Guangxi Zong Kai Food and Beverage Investment Co. Ltd. on April 30, 2010. As of that date, San Pin Wang had a chain of 34 stores in China.

Jollibee Foods through JWPL and GZK have been taking steps to restructure San Pin Wang's legal entities that will culminate in the formalization of this joint venture. The joint venture will likely be formalized in the next few months.

Also, on May 20, 2011, Jollibee Foods, through JWPL, signed a framework agreement with Viet Thai to establish a platform for owning and operating a portfolio of restaurants in various territories including Vietnam, Hong Kong, Macau and Southern China.

In April 2011, the company so discontinued the operations of its Manong Pepe business after acquiring Mang Inasal in November 2010.

As of September 30, 2011, Jollibee Foods operates 1,946 stores in the country and 437 stores abroad. - CMA/OMG, GMA News


http://bit.ly/vDj6vi

EDC to buy majority stake in four South America projects

December 1, 2011 12:40pm

Publicly listed Energy Development Corp. (EDC) has signed a deal giving it majority stake in four geothermal projects in Chile and Peru.

EDC told the Philippine Stock Exchange on Thursday that it signed a heads of terms agreement (HOTA) with Australia’s Hot Rock Ltd. to buy 70-percent equity in the South American geothermal projects.

The HOTA sets the framework and main commercial principles involving the 70-percent interest in the Calerias and Longavi geothermal projects in Chile — where EDC has a representative office — and in the Quellaapatcheta and Chocopata geothermal projects in Peru.

The transaction is subject to certain conditions, including full documentation, due diligence, and regulatory and governmental approvals.

Hot Rock has already completed most of the surface exploration in the geothermal projects. In the next six months, EDC and Hot Rock intend to finish the remaining surface exploration activities.

Based on the agreement, EDC and Hot Rock will establish joint venture companies for each of the geothermal projects, with EDC owning a 70-percent interest and Hot Rock owning the remaining 30-percent stake.

“We are excited with the prospect of developing with Hot Rock Ltd. what we consider as some of the best geothermal concessions in Chile and Peru, said Richard Tantoco, EDC president and CEO.

“The ability to grow our business with full control over our steam fuel supply is the strategic rationale for the Lopez Group's acquisition of the controlling stake in EDC,” Tantoco noted.

Dr. Mark Elliott,  Hot Rock executive chairman, said, “We are excited to have executed this HOTA, with the intention of establishing our first major partnership deal with EDC, the world’s largest integrated geothermal company with 35 years of experience in volcanic terrains and with a strong balance sheet.”

As part of its growth targets, EDC, has submitted direct applications for 13 sites and bids for five sites in Chile. The company is also looking at opportunities to develop geothermal projects in Indonesia, Kenya, and Peru.

EDC is the world’s largest integrated producer of geothermal power. It is engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of geothermal power plants with a combined capacity of 1,130 mega watts. — VS, GMA News

http://bit.ly/ubV7QX