Bacnotan eyes investments in housing, education and energy

Loaded with a cash pile of P2 billion, Bacnotan Consolidated Industries Inc. (BCII) is looking at further expanding its investments in the housing, education and energy sectors to further boost its cashflow.

In a briefing with reporters following the company’s special stockholders meeting Friday, BCII chairman Oscar J. Hilado said the firm, awash with cash from the sale of its cement business, is considering acquiring another university next year.

He said the group is looking at three prospects, all of which are outside Metro Manila.

The group earlier said it was considering investing in a school located in the central province of Iloilo.

It now owns two schools – Araullo University in Nueva Ecija and Cagayan De Oro College.

The group’s objective is to build a network of three to five universities and colleges all over the Philippines with a total student population of some 50,0000 to 75,000.

For its housing business, BCII, through Phinma Property Holdings Corp. (PPHC), will build five-storey medium-rise buildings in Fairview, Quezon City, comprising a total of 750 units.

BCII president Ramon Del Rosario Jr. said the units, with a floor area of 30 square meters, will be sold at prices ranging from P600,000 to P800,000 each.

PPHC is able to offer attractive homes in wholesome communities at highly affordable prices, supported by Pag-IBIG financing.

Hilado said PPHC is also set to build its third housing project in the South, possibly in Sucat, Paranaque.

Apart from this, BCII is eyeing the geothermal plants to be auctioned off by the National Power Corp.

Among these plants include the 330-megawatt Tiwi plant, 410-megawatt Makban plant and 112.5-megawatt Palinpinon. The group seeks opportunities in the energy sector through subsidiaries Trans-Asia Oil and TA Power, which currently operate a 53-megawatt dedicated power plant for Holcim Philippines, Inc.

Trans-Asia intends to form a consortium with both local and foreign firms in preparation for privatization of the government-owned power assets.

For the first half this year, BCII posted a net income of P112 million, up 67.54 percent from the previous level’s P66.85 million.

BCII’s expansion binge follows the recent divestment of its 21.31-percent stake in Union Cement Holdings to Cemco Holdings for $89.4 million.

This divestment has allowed BCII to distribute significant cash dividends, pay off its outstanding loans, fully redeem all of its outstanding preferred shares and explore opportunities in various sectors.

BCII is a member of the Phinma Group of Companies.