Sinophil eyes P1 billion from sale of assets

MANILA, Philippines - Sinophil Corp., an investment holding firm 45 percent owned by Belle Corp., expects to generate P1 billion from the sale of some assets as it moves to streamline its operating structure and get into businesses with high-growth potential.

At the sidelines of the company’s stockholders’ meeting last week, Sinophil chairman Willy N. Ocier said the firm has formed a committee to scout for prospective businesses it can invest in over the next few months.

“We formed a committee to find out what business would be best for Sinophil. We’ve been divesting some assets to allow us to take advantage of the many opportunities that will emerge as conditions improve,” Ocier said.

Ocier didn’t say which areas the group is particularly looking at but finds the power and other energy-related businesses interesting.

The company is disposing of a property near Tagaytay. Last year, Belle and Sinophil sold their combined 45-percent equity interest in Metro Manila Turf Club to a group of horse owners and aficionados for P18 million.   

Manuel Gana, chief financial officer of Sinophil, said the company is expected to post positive operating results next year.

Sinophil incurred a net loss of P581.8 million last year or more than 21 times the P27.5-million loss recorded the previous year on higher expenses and charges.

From only P125 million in 2007, Sinophil’s total expenses ballooned to P587.2 million, comprising mainly of a P574.6-million extraordinary loss provision pertaining to its investment in common shares of Belle which were acquired in 1997 at an average cost of P7.20 per share.

In view of the significant decline in value of these shares and the current global financial situation, Sinophil booked this extraordinary loss provision to mark down its net book value for these shares.

As of end-December 2008, Sinophil had total assets of P3.11 billion or 34 percent lower than the previous level of P4.67 billion.

Sinophil has invested in various companies involved in gaming, property development, pay-per-view entertainment and information systems. It holds 40-percent equity in Legend International Resorts (HK) Limited, 16-percent equity in Metro Manila Turf Club Inc., 3.9-percent equity in Belle Bay City Corp., 100 percent of Foundation Capital Resources Inc. (FCRI), and 100 percent of Sinophil Leisure and Resorts Corp.