Business Mirror
February 6, 2012
By MIGUEL R. CAMUS
LISTED Abacus Consolidated Resources and Holdings Inc.’s remains undecided on whether to pursue an earlier-announced plan to acquire a minority interest in an Indonesian budget carrier.
A top official said last week that the investment is not one of the company’s main concerns.
Joaquin San Diego, Corporate Secretary and Vice President, said more information is being sought from the airline regarding its plans, but he admitted that the investment is no longer a “top priority.”
Abacus had until the end of January to pay $1 million for a 33-percent stake in Lite Aviation Holdings Ltd., owner of a 49-percent stake in PT Lite Airways Indonesia (Lite Airways), which expects to start operations by the middle of 2012. The holding firm has an option to further increase its interest to 67 percent, based on an agreement with Lite Aviation.
“The level of interest isn’t that high. This is our first investment abroad,” San Diego said in a phone interview, citing Abacus’ focus on domestic opportunities such as its real estate ventures and gold prospects.
He clarified that the board of Abacus has yet to meet and formally decide on the matter.
Abacus, which disclosed initial plans to invest in Lite Airways in October, said it was drawn to the industry due to the growing prospects for airliners in Indonesia, Southeast Asia’s biggest economy.
Lite Airways has a fleet of 70-seater turboprop aircraft, making it suitable to cater to underserved “secondary airports” in large and affluent population centers, Abacus said.
A check with the air carrier’s website shows a single page stating its plans to begin full operations by April 2012 and contact details listed in Jakarta, Indonesia.
Abacus said in a Philippine Stock Exchange filing in November that it had already paid an initial $50,000 to Lite Aviation.
“In this investment, we would not have gotten into it if we didn’t find it promising good returns. But the size of the investment is what we are weighing now,” San Diego said.
New investments would help diversify Abacus’ revenue stream, which is mainly dependent on dividend earnings from its minority interest in Pacific Online Systems Corp., a listed gaming company.
The company said earlier that revenues declined almost 4 percent to P44.93 million in the nine months to September last year. Net income during the period hit P27.5 million, up 24 percent, as expenses dropped.
Abacus said in December that it plans to sell its 17.88-percent stake in Pacific Online to finance new investments. Shares of Abacus added 1.25 percent to P0.81 each on Friday, giving it a market value of P2.15 billion.
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