To:
May 10, 1998
From: Martin Siegel
Subject:
Asian Trip
Non Japan Asian Overview
Growth reduction from 5.1% to 3.2%
Lower trade with affected neighbors
Lower than anticipated growth in China
Factors for GDP reduction
Weaker than expected export response
After 20-60% devaluation it is still impossible to get LC for trade transaction
Lower dollar receipts from exports due to devaluation
Revised inflation upward from 5.7% to 8.3%
Adjustments to current accounts due to lower imports rather than stronger exports
Equity markets since January have had a gain in local terms of 281/6, without a sustained rally.
Currencies (ex-Indonesia) bad rallied an average of 16.3% since January.
What is required going forward
de-leveraging and recapitalization of both the banking & corporate sectors.
New rights issues and debt/equity swaps (both causing dilution)
De-leveraging will also bring tight credit, which will affect returns on equity.
Goldman Sachs does not foresee a sustained recovery in dollar terms before 1 -2 years after a banking
crisis.
VIET NAM
Time Zone
Currency
Hotel
Temperature
Population
11 hours; ahead of New York
Dong
Rate as of April 24
13,000 = S 1.00
New World - Saigon
Between 90 -114 degrees
Aprox 74 million in the country with 7 Million in Saigon
Brief History:
1994-1996
1998
Growth exceeded 9% annually, fueled by rising exports & tight financial policies.
With export growth averaging 30%
Inflation at 4%
export growth decelerates to 12.21%
Widening of official currency bands to l0% (October 97) and a 5.3%
Devaluation in February.
GDP forecast is an unrealistic 91/6
Current account deficit forecast - 7% of GDP
Level of foreign reserves at $2Bil - equivalent of 2 months of 1997 imports
Inflation remains at 4 -5 %
Medium Term Potential is significant
Country is resource rich
Highly educated (86% literacy) population
Cheap labor
Country has an "upbeat” feeling, with people who seem quite industrious.
Major problems: A communist government that is non-responsive to business needs.
Inefficient state owned enterprise sector.
A country that requires a great deal of "paper" to get something approved.
No real court system
A growing "anti-foreign” mood pervading the country
Weak banking sector w/ non-performing loans. Heavy reliance on foreign savings
There is a day to day shortfall of hard currency to meet import demands
Pressure an companies with dollar deposits to convert them to dong
El Nino has caused a drought, which has affected both the: rice and coffee crops.
Salaries:
Per capita income is $250 for the country and $1500 for Saigon
Taxi driver is highly paid receiving $100 a month.
Bellboy in hotel has left his job as teacher ($35 a month) to become a bellboy ($90 )
Transportation 5 years ago everyone used bikes. Now everyone uses motor bikes (Honda)
Probably only 3 traffic lights in all of Saigon. It has more deaths per capita on a
Daily basis than any other country in the world ( 9 - 10)
Schedule for Viet Nam
Arrived Sunday April 26
Sunday evening:
Flight time from New York (via Vancouver) 24 Y2hours
Meeting with 6:30 with from
Building Supply. at a
company rally. There are 60 distributors for the tile and they all attend
this quarterly gathering
Dinner with
Monday April 27
Tour of Ho Chi Minh City
War Museum Notre Dame Church US Embassy
Saigon Waterfront
Saigon Water Park
Open and operational.
Current attendance is 9000 per week. It needs 10,000 for b/c
Most of the volume is weekend, and park did a weekend attendance
of 17,000 on opening weekend
Staff of 300 is currently being reduced.
Government owns 30% and Beta Capital ( TJK) also a holder.
Board Meeting of Building Supply)
Manufacture ceramic floor and wall tile
Tile being manufactm-ed in single and double fired kilns
Metropolitan Building ( see photos) has the tile throughout.
Have high priced
and starting a lower end
division.
Morgan Stanley currently working with a group to build a competing
facility
Dinner with , who lives in Saigon and
is publishing a
magazine in Saigon.
Tuesday April 2e
Meeting with Board of Juice Company.
Company anticipates being operative in January.
Packaging, flavors, etc. occupy most of the discussions of a group
made up of Brits, Australians, Viets and Americans.
Meeting with Mark Kenderline-Davies of Beta Capital.
Beta is a Uk operation with a total of $500 NO invested in ventures/
Beta has 3 Brits living in Saigon, looking for opportunities
for venture capital investments.
Currently they have $90 million invested in 14 joint ventures with
little success to date.(none profitable to date).
Dinner with
. He is a "deal maker" and
apparently had great success with the Furama, hotel, and is assming Morgan
Stanley in setting up their tile/ceramic company. He only sets up the deal and
does not get mvolved, in the management
Wednesday April 290' Meeting with
at his office.
Lunch with
of Templeton
Feels great frustration, in finding opportunities in Viet Nara.
Little near range potential
Cost of production here vs. other Asian countries is too high
Government has great shortage of hard currency.
Most joint ventures are too small to consider.
Tour of the Ceramic Factory. (see photos)
Conclusions of Viet Nam:
When everyone was looking for the "new" Korea and "new" Indonesia, they focused upon Viet
Nam and the next major investment opportunity. With the problems that have beset SouthEast
Asia there seems to be ample opportunities without having to look to Viet Nain. The country has
a long, long way to go before it warrants any investments on our part.
Thursday April 30:
9:3 0 Depart Ho Chi Minh City to Bangkok
Arrive Bangkok 2:30 PM
THAILAND
Time Zone
Currency
Hotel
Temperature
Brief Data
11 hours ahead of New York
Baht Rate as of April 2e
38 = $1.00
Sukhothai Hotel
Between 90 - 110
Balance of Payments
For 5th month trade and current account recorded a surplus
January US $800+Mil surplus vs deficit of $1517 a year earlier
45% decline YOY on imports (US $3.3 in January)
Exports contract 8% YOY to US $4.2 Bn
Limited access to export credit
Similar devaluation's by Thai neighbors
Erosion of competitiveness through high inflation
Sluggish to negative growth with main trading partners
Gross reserves $26.2 Bn end of February = 5 months of 1997 imports Manufacturing
production index declined in January by 16.4 % YOY
Banking system plagued by non-performing loans estimated to reach 301% of total
lending by the end of 1998.
GDP projected to contract by 3- 3 ½ % during 1999
Anticipated average inflation projected at 11.6% vs 4.4% in first half of 1997
Outlook
In 1999 Goldman anticipates export growth of 9.5% and import growth of 7.0%
with a current account surplus of $ 5.7Bn US
Goldman also anticipates currency to be at 35 in 6 - 12 months. They believe the
currency is 19.60/a undervalued as of March 1998.
Goldman anticipates inflation to peak at 16-17% before going to 6.5% in 1999.
Finance Co.
Currently 56 finance companies are permanently closed
FRA ( Financial Sector Restructuring Authority) to auction the loan portfolio
Bankruptcy
New bankruptcy laws being enacted but at present it is difficult to
foreclose or liquidate an insolvent debtor, and I am not sure that this
matter is addressed in the new Bankruptcy laws.
Main change in bankruptcy laws was to permit a form of Chapter 11
In the past bankrupt companies could only be liquidated not
rehabilitated.
No "due dilligence' has been done an the assets being offered.
Only 70 judges to hear 100,000 cases.
Cases come before the judges based on filing. Size of the company is immaterial.
One case has been in the courts for 31 years.
Asset Plus Securities Company Ltd arranged meetings in Thailand.
Thursday April 30
Meeting with Asset Phis
M
P
Brief discussion and overview of Thailand before we leave for meeting
with the Sun Group. As an aside, M favorite Thai stock is Tasco, which
has the asphalt monopoly in Thailand.
Meeting- Thaveesak Vaykornvichitr, President
Sun Wood Industdes Public Company Limited
Stock price 33 baht
10 Moon shares outstanding
Manufacturer of teak and danish indoor/outdoor furniture
Stock has been dormant until devaluation, but as a dollar exporter
the stock has been up.
Range of stock: hi 110 Low 5 currently 33
Debt: S 1.5 Million in foreign debt and 13 Million in baht debt
Growth 10% per year, and anticipate 15% growth in 1999.
65% family controlled
Earned 6 Baht in 1st quarter ( only declared 3)
Wants to do a 2 mil. share private placement when price is 60.
Annual report is available.
Meeting
Adisorn Thanamm-Nampool, Exec. Vice President
Land & Houses
Private home real estate.
Mortgage rate 17 % and not easy to foreclose.
Currently in Bangkok there are 10 Million people in 2.5 Million homes
700/6 of Land & Houses competitors are now out of business due to
bad debts. (They had debt/equity ratio of 2: 1, while he had a ratio of
only 1: 1).
No fear of Japan, but a great fear of Chinese devaluation.
Stuck us as a red "wheeler-dealer" and added very little value added.
Thursday Dinner The Executive Dining Room at the Siam Commercial Bank
Jada Wattansiritham, Senior Executive Vice President The Siam
Commercial Bank Pcl.
also attending from the bank:
Somchai Sairyalaksiri -, Sr. Vp and Mgr. Treasury Dept
Uthayophas Vp & mgr. Capital Markets
others attending:
Pimpaka Nichgaroon - analyst for Asset Plus
Sheik and Marty
Friday May 1st
Meeting: Pacific Group
A major land developer and real estate packager in Bangkok
Anthony James - Chairman and James With
Banks still have a large insolvency hole to fill.
Both Banks of Bangkok and TFB will have to return to the market
for an equal amount of money next year.
They have put most of the money that they have raised with the
Central bank where they receive 171/9, rather than lend those funds
to customers.
Country has to look to do privatization's, such as Thai Air.
Meeting. Donaldson Hartman, Salomon Brothers
Most knowledgeable person we met. Has spent 4 years
here. Speaks fluent Thai.
TFB has 30% Non performing loans and using a theoretical 60%
recovery rate, but things are eroding too quickly.
Property loans, manufacturing loans and mortgage loans
are all going delinquent.
All banks will underperform the Thai stock index (SEI)
Currency at 38 Baht is an uarealistic level. It was brought about
by the purchase of Balit to purchase TFB and BB sold stock
Would anticipate a rate of +1- 45 B.
Two thirds of all foreign currency debt is held by Japan. The
Japanese banks came to Thailand to get a license, but instead of
Just lending to Japanese Joint ventures in Thailand, they expanded to
Thai companies:
currently:
40% loans to Japanese Joint Ventures
60% to locals.
The Japanese banks would love to cut their exposure in half but they
cannot.
Weakness in the bankruptcy code. It has taken Siam City Insurance
thirty years to resolve its bankruptcy.
FRA (similar to Fobaproa in Mexico), as you are buying the loans of
the company rather than control and administration of the company.
Big problem: Special law that the company is not allowed
to buy back their open loans.
IFTC (?) coming with a 100/a, 10 year convertible note - Salomon
Note is for project financing.
70% of the loan - export related
currently selling at 20, which is 1 ½ times book.
they have 22 ~6% non-performing loans and 501/6 recovery
they are much more conservative than Bank of Bangkok
Donaldson Hartman, Salomon Brothers continued
Would look at Patra, which is a sub of TFB (49% owner) 6%
real estate exposure vs 12 % normal trading at 3x book
Merrill looking to buy stake m Patra brokerage.
Although he sees a large Japanese influence on the results in
Thailand, his greatest fear is a Chinese devaluation.
Meeting - Lunch IMS Cable Commumications Co. Ltd
Burin Borriboon - Chairman
(Burin's other role is that of advisor to the King on his investments)
He particularly watches dollars of exports and capital inflows.
Expects another severe downturn.
Expects Baht to get to 50 but not reach the old high of 57
Would not invest in, the country until December
He would look to buy a diversified company rather than just an export
company.
The Asian games are m December and that is a big plus for Thailand
His favorite stock is an auto parts exporter (?)
Meeting
Asset Plus Securities Co. Ltd
Dr. Kongkiat Opaswongkam - President & CEO
Meeting set up by George Teo
Asset Plus has two minority shareholders
5% Singapore government
5% Soros
Expects the baht to range from 42-45. Any higher level
would be dangerous for the country.
Feels generally upbeat about the country, but anticipates
more problems before the market tuna
Stock choices would be GSS (?) and Safari Park
Dinner Meeting Asset Plus - Paul Napolitano - Equity department
His favorite stock selections
Bardm: TFB, BB and Bank of Asia
Finance Companies
National Finance and Patra
Exporters
GSS
Leisure
Safari Park
Saturday May 2nd Depart Bangkok at 10:30 to Phuket
Saturday May 2nd
Meeting
FANTA SEA a part of SAFARI WORID (a public company)
Pitipong Limrat Director of Administration (Educated Cal State)
Pin Kewpaisal - Chairman and 52% owner
Visitors to Phuket
1997 2.8 million
1998 3.5
19.99 4.0 (est)
In February there were 1,997 Ilights into Phuket
Anticipate park opening in October
95% of visitors come in groups and have worked out a deal with
all group owners to bring their people to park
Asians spend 3.75 nights and Europeans spend 6 nights.
+ running a bus (11 hours) from Bangkok to park.
Building a 3-4000 seat theater and 3-4000 seat restaurant and
shopping plaza.
Anticipate 3 shows nightly
Minimum time you can stay is 3 1/2 hours:
1: 15 min for a "Sigftied & Roy" type show
:45 min for a buffet dinner
balance of time to shop and walk about
Only other entertainment in Phuket is a transvestite show.
Tickets will be 1200 Babt ($30) of which 300 will go to tour operators
Anticipate spending 700 B ($18) at gift shops.
Shares outstanding: 160 million after a 47.5 million private sale
at 20 Baht.
Current price is 26 Bahl Range: Hi 188 Lo 10
Pays out 60% in dividends, which is a 10% yield
Tax: have set up an arrangement with government
first 8 years no tax
nexi 5 years 15% tax
Staff of 700: Salary range: monthly
10% - highest
40,000 Baht
30% -middle
10 - 20,000 baht
60% - low
under 10,000 Baht
minimum wage is 160 baht a day ($4.50)
Investment cost 2.850 Bil Bahl ( $75 nail)
Depart Phuket Sunday morning to Jakarta
JAKARTA
Arrive: Sunday May 3rd 4:00 PM
Hotel
Regent
Population
24 million
Rupiah when arrive
7500 = $1.00
Temperature
98 degrees
Time zone
12 hours ahead of New York
Background Information:
GDP
After 8% real GCP growth in early 97, economy now headed for a 10% contraction
Anticipate only a 2% expansion in 1999 due to Lack of credit coupled with prohibitive
cost of imported inputs. ( Only 2 months supply in the pipeline)
Inflation:
1998 Estimate (Goldman) 501/6.
February CP1 was 13% for the month ( 4WY6 annualized)
Goldman estimates inflation peaking at 60% in 98 and 20% in 1999.
Current Account Trade balances movmg towards surplus as no pick up in exports ( -2%) and imports
down by 3 5 0/6.
There is $74Bil US private debt not being serviced
International reserves have declined from 20.2Bil to 12.2 Bil.
Key factor
Unlike Korea and Thailand where many of the problems are in the banking
sector, Indonesia has a predominantly corporate crisis.
Of the 212 banks that are in existence, 54 have been taken over and it is
estimated that there will only be 20 - 30 banks at the end of the year.
Subarto and his family are entrenched in many businesses.,
Bankruptcy
Indonesia’s private sector debt estimated at US $74b. There remains a big question as to
what legal recourse creditors have in the case of debtor default or bankruptcy.
The bankruptcy laws are similar to Dutch laws but area considered antiquated, with
slow and inefficient courts which are usually not impartial.
Meetings and schedules were set up by Edward Lee, Managing Director of Institutional Sales of
Dakareksi Securities and Daniel Offit of Goldman Sachs.
Sunday May 3rd
Dinner
Tom Lembong;
Makindo Brokers (Brokers to the Kingo
He believes Subarto is quite sick and only has 18-24 months to live.
His two favorite stocks are:
Semen Gresik (the partially government owned cement company)
PT Daya Guna, Samudera (the fishery company)
Monday May 4h
Meeting
Breakfast - Edward Lee
Danareska, Securities - an overview of Indonesia
Ms. Mari Pangestu - Director
Centre for Strategic and International Studies
Also: Dean of the Graduate Business School in Jakarta.
The two major problems facing Indonesia currently are the
students and the private debt, which is really a private sector
generated problem.
Currently 13-15 million open unemployment out of 70-90 million
It will be the elite of the Army who will determine the outcome of events
No one even talks about domestic debt. The rupiah would have to be
fixed at 5-6000 for that to work and that is not feasible.
There is no export growth recovery and there are no dollars coming in.
There is much more concern with a China devaluation or a Chinese banking
crisis than with the Japanese problem. Normally Japan would be one of the
biggest donors of long term foreign aid, but she does not see that this time./
She anticipates more (larp) shock waves from Korea.
The problems in Indonesia bave not yet cycled through the middle class.
(pre the big riots) the stores are crowded but people are slowly beginning to
downscale, but not the same yet as Thailand.
Anticipates 50% infation for the calendar year ( weak demand).
Indonesia has to move from a real estate led economy to an export
driven economy . Thailand has, but Indonesia has not yet. (?)
Meeting
PT Bintuni Minaraya Tbk.
Johnson Sihombing - Director
Anwar Pulukadang - President Director
The largest fishery in the world.
11,000 people employed - 100% exportexcept fish meal which is
sold in Indonesia)
620 fishing boats - 3 vessels to Umsport the second largest fishery only
has 30 fishing boats).
Currently at 80% of capacity.
They are needed by Indonesia. 95% net foreign currency and they do
not have to import anything and spend dollars. ( a textile firm would have
to import 30% of their product).
They employ an entire family; The husband fishes; the wife works in the
factory., the children go to the company school = happy employees.
They plan to hire an additional 5,000 people for tuna canning.
Who they sell to:
China 40%; lb~ 25% ( ~ buy the tuna and currently can it)
25% Japan ( shrimp & fish fillet). The balance to Singapore & Taiwan.
With the new cannery they will be able to sell directly to the US (private brands)
When the rupiah was 2500 their gross margin was 50% When the rupiah was
10,000 their net margin was "/o,
Numbers which may or not be correct
360 mil. market cap
4.9x ebita
6x cash flow
lox 1997 earnings
4 x 99(e) earnings.
Believe that they can, through 1999 quadruple
gs.
They control 5 1% of PT Daya Guna Samudera (422.5 mil sham out)
along with 3 other subs which do Tuna, Seafood processing and ?.
Daya as $60 mil per year cash flow and $225mil total debt
They are planning in June (??) to raise 5100 mil (25% of equity) to
expand and build the Tuna cannery for the US bu~.
The parent has no maturing debt, only a 10 year 10% yankee bond for
5225 million.
Lunch
Judith Fergin
Economic Counselor - US Embassy
Meeting
PT Pasiflk Satelit Nusanttara AceS (ASIA Cellular Sattelite )
Mr. Adi Adiwoso - President Director
Meeting
BPPN
Badan Penyehatan Perbankan Vasional
The Indonesian Bank Reconstructuring Agency ((IBRA)
Illham Ihksan - Coordinator Bank Rehabilitation
Iwan R. Prawiran - Chairman
Iwan is a member of the Central Bank and also heads IBRA, which is the
equivalent of the RTC. The purpose is to divest the banks of their bad loans:
It is under the MOF and not the Central E
There are currently 54 banks in trouble and have already been taken over
IBRA will move the asset s to the AMC (Asset management co) , who will
dispose of the assets. They do not know what they are selling yet.
IMF has set minimum requirements which must be implemented by December
and they would therefore expect a lot of mergers because of this ( they can force
a bank merger)/
The major problem Indonesia faces is getting import inventory with only
2 months of inventory left and no letters of credit
Japanese banks are the largest holders of Indonesian Debt.
Meeting
PT Gudang Garain
HeruBudiman
Clove Cigarettes
130 tons of cloves a day
The nation is getting younger
It is a Muslim country - no drinking so smoking is their only vice.
Foreign brands only have 12% of the total market
They control 45% of the market - 1.5% of sales for advertising.
10% of the cost of goods sold is imported
45,000 employees - average salary is 5500 Rupiah a day.
Capacity is 110 billion cigarettes - they currently make 94 billion and
export 2 bilfion.
There are no limits or restrictions on advertising of cigarettes in Indonesia.
Meeting
Semen QlAnong
Nick Petroff - Executive Senior Advisor
An American, with the company for 24 years.
The company raised $1.1 billion in the US last year to build an $800 mil,
cement factory.
The company has a net worth currently of $50 miHion
Dinner
Margot Cohen - Wartawati (Journalist)
Ridha Wirakusumah - President & Country manager - GE Capital
Michael Chambers - IT Rashid Hussain Securities
Dinner
Tuesday May 7th
Meeting
Daniel Budman - Pegasus Consulting
Mr Iwan Porajowinoto
Managing Direcot & CEO of PT Danareska Fund Management
Danareska
The Lippo, Group
Eddy Handoko - Deputy President Lippobank
James T Riady - Deputy Chairman Lippo, Group
80% of bank depositors will be looking for a new bank by year end.
They anticipate getting 9-10% market share ( a lot of money has fled country)
They believe that the government should quickly do an equity for debt swap
to get the economy started again
When they do their recapitalization (up to $200 mil) they would also put
in more money to maintain their share.
The remimbi - Peoples Republic of China state enterprises are broke and
badly need foreign capital. They are holding of waiting for the depreciation.
They need foreigners to private state sectors. The PRC foreign secretary
thinks they have to do a 20-30% adjustment, but that would hurt the region
so they plan on doing a 10-15% readjustment
The HK peg will follow the remimbi but they don't want to do it at a weak
time. Perhaps 3 - 6 months.
He thinks, looking to the future, that Indonesia is ahead of Japan and he
is very negative on Korea.
Most private debt here is not to Indonesian banks but to the offshore banks and
the government can ball out the banks without having to bail out the private
sector ( different problem than Korea and 11~).
There is no hunger in Indonesia. The government could sell off 15% of the
oilfields and bail out the country.
There was a big real estate speculation by the middle class in Thailand but
not in Indonesia.
There are 212 banks currently and that will drop to 30 by year end and
Lippo will be in the topo 5.
His favorite stock pick: Semen Gresik
Wednesday May 6th
Depart Jakarta at 9:30
Arrive Manila, (through Singapore) at 5:00 PM
Background
Peso
Growth & Inflation
38.19 ( Goldman as of March think it is 141/o undervalued)
4Q 97 real GDP slows to +4.7%
All 97 growth was 5.15 vs 5.71/o for 96
Export growth 28% YOY in a4th Q of 97
Manufacturing sector contributed more than 20% of GDP growth
Inflation slows from 8.4% in 96 to 5. 1% in 97.
External
Export growth highest in area ( semi conductors 33% of total in Jam
Imports slowed to 0.2% YOY Jan vs 10.9% in 1997
Trade deficit shrinks to 0.7B Jan98 vs LlBil Oct 97.
Presidential elections
High interest rates
Slower regional growth
Weak agriculture sector due to El Nino
Anticipate 2.2% growth vs. original forecast of 5 - 5.5%
1998 inflation anticipated between 8-9%
Current account deficit of 3.4% of GDP
Outlook
Dinner
Thursday May 7th
Meeting
SocGen Crosby Securities (Philippines)
Me. Anton Romulo
Lito Vicencio
SM Prime Holdings
Jeffley Lim - VP Finance & Administration
Builders of shopping malls. They have built the Yd largest in the world
( after the one in Minnesota & Canada).
Anticipate a peso rate of 35-36
There are 5 million OCW (overseas Philippine workers) who do well in
peso devaluations and are also taxed.
1st Q YOY - revenue growth of 13-14$ (same stores) and 26% when you
add in the new stores.
They have SM City Malls + retail stores + 55% of shoe mart
They are the largest operators of cinemas in the country and also own
Banco de Oro + 60% of fortune cement, but all these group holdings are not
part of the stock you would be purchasing
Mall is 2.5 million sq2 feet
SM Prime has 7 malls and are very conservative. They fund through
internally generated cash ( 98 generated 3.2 billion pesos- cash)
Currently retail trade closed to foreigners, but that is in the process of possibly
being changed. WalMart has been looking
Building 2 malls 180,000 sq. meters
Unemployment at 10% with 40% at the poverty level $1130 US is per capita
annual income.
Trading at 24x earnings stock price 760
Stock market is down 60% m peso terms and this stock only down 3(r/o
Meeting
PLDT Philippine Long Distance Tel)
Mr. Edgardo del Fonso - Chief Financial Officer
Earnings & cash flow gain on devaluations
Line charges $1200-1400 on an incremental basis
Backlog of 500-600,000 lines ( 15% of the population).
Cutting employees from 20,000 to 12,000 over 3 years.
Lunch
Rizal Commercial Banking Corporation
Mr Cesar Virata Chairman + others
MrVirata is a friend of George Teo. He was a former Prime Minister of
the Philippines & his grandfather was the first President ( 100 years ago).
Meeting
Metro Pacific Corp
Napoleon Nazareno - President & CEO
Salim owns 30% of First Pacific & First Pacific owns 62% of Metro
They are into drinking water, corregated containers; astringents, 3 real estate
development companies; a bank and ( I think they are trying to buy a stake
in San Miguel).
The phone Company as a subscriber base of 700,000
They are planning a rights offering
Discount to NAV is 380
share price is 190
Dinner
Next Century Partners
Vincent Perez - Senior Managing Director
Benedict Perez (brother) from So-Gen Crosby Securities.
Friday May 8th
depart for New York.