MANILA, Philippines - The Lucio Tan Group of Companies has distanced itself from MRC Allied Industries Inc., a publicly-listed firm now controlled by a son and namesake of the airline and tobacco tycoon.
In a newspaper advertisement, the Lucio Tan Group of Companies said it has “no corporate ties or any business dealings with MRC.”
“The advisory was issued to inform the public and to correct any misimpression the news reports may have generated,” the group said.
The younger Tan has acquired 80 percent of MRC by buying out the listed firm’s P600 million worth of debt from several financial institutions. With the buyout, MRC issued to MenloCapital Corp., a company 51 percent owned by Tan Jr., a total of 3.625 billion common shares coming from the increase in its authorized capitalization to P3 billion.
MRC was used to be controlled by businessman Bitanga, who remains as its president.
MRC told the Philippine Stock Exchange that it indeed has no business dealings or transactions with the Lucio Tan Group of Companies.
An MRC official was earlier quoted saying that the company was looking at possible synergies with Philippine Airlines, a member of the Lucio Tan Group of Companies, when it completes the acquisition of Johnny Air Cargo.
Informed sources said the taipan encourages his children to do businesses on their own as long as they don’t use his name or piggyback on his existing businesses to stimulate interest.