Anscor sells 18.34% stake in Phelps Dodge

A.Soriano Corp. (Anscor), the investment holding company of the Soriano family, has sold an 18.34 percent stake in Phelps Dodge Philippines Inc. (PDPI), the largest wire and cable manufacturer  in the Philippines,  to Canada-based General Cable Corp. for P641.49 million.

In a disclosure to the Philippine Stock Exchange, Anscor said the sale of its 1.081 million shares in PDPI  raises General Cable’s stake in the cable manufacturing firm to 60 percent, with the balance still owned by Anscor.

Anscor said it will continue to manage PDPI  even if it has relinquished control of the cable manufacturing firm to General Cable, a New York-listed global supplier of wire and cable products catering to the energy, industrial and communications sectors.

PDPI is a joint venture established in 1995 by Anscor and Phelps Dodge International Corp., a company that General Cable acquired in the fourth quarter of 2007.

The acquisition is in line with General Cable’s planned expansion in Southeast Asia and other markets.  It likewise supports ongoing operations in Australia, the Middle East and South Africa. 

With the sharing of new products and technology from General Cable around the world, PDPI expects to penetrate other sectors of the Philippine wire and cable market, Anscor said.

“We have worked very closely with PDPI as our partner for more than half a century.  Our mutual respect and willingness to share ideas have resulted in PDPI establishing a leadership position in the Philippines. We are pleased that General Cable will make PDPI a key part of its platform to further its strategic expansion in the region,” said Andres Soriano III, chairman of Anscor. 

PDPI registered revenues of around $100 million last year.

Anscor has been selling some of its investments in the past two years.  In 2006,  it  disposed of its 23-percent stake in port operator International Container Terminal Services Inc. to shipping and port operations magnate Enrique Razon Jr. for P5.91 billion, and shares in SPI Technologies for P359.3 million.

Early this year, Anscor announced that its American company, Medtivia Inc., bought two placement firms, Cirrus Holdings USA LLC and affiliate Cirrus Medical Staffing LLC, for $13.95 million.

Aside from PDPI, Anscor has interests in contact center operator eTelecare Global Solutions Inc., International Quality Manpower Services Inc. and Seven Seas Resort which operates the exclusive Amanpulo Resort in Palawan. 

To sustain its profitability this year, Anscor is planning to continue to  focus on the services, tourism and business knowledge process outsourcing sectors.

Last year, Anscor reported a 77 percent jump in consolidated recurring net earnings to P578.8 million from P327.9 million in 2006.  The company posted a net income of P619.8 million in 2007, down from P3.04 billion in 2006 which then included a one-time gain from the divestment of shares in ICTSI and SPI Technologies.