MANILA, Philippines — Lucio “Han” Tan III, the grandson and namesake of the taipan, is set to take the helm of the LT Group Inc. (LTG) as president, a year after the listed conglomerate made the announcement.
His appointment marks a new chapter in the long and winding story of the sprawling business empire of taipan Lucio Tan, as it sheds light on the group’s succession story, which for decades now has long been considered complicated and ambivalent.
Appointed as vice-chairman and COO of LTG last year, Tan III is now stepping into his expanded role as president no later than April 30, an appointment expected to be sealed during the company’s annual stockholders’ meeting on May 3.
However, for Tan III, it will just be “business as usual” as he has been preparing for his new role since last year’s announcement.
“There won’t be much of a change since the announcement last year. I’ve already been meeting once every week with the LTG team,” Tan III told The STAR in an interview last week.
“It is as professional as possible. There are no surprises here,” he added.
Tan III, 30, the eldest son of the late Lucio “Bong” Tan II, will succeed his uncle Michael.
LTG’s businesses include banking through Philippine National Bank; tobacco through PMFTC; property through Eton Philippines; liquor through Tanduay Distillers Inc.; and beverage through Asia Brewery Inc. It also has a 30.9 percent stake in Victorias Milling Co.
Asked about his plans for LTG, Tan III said the focus for now is to maximize the value of existing businesses before diversifying or venturing into other areas.
“At this point, we are looking to maximize our return on assets and return on equity for the various operating companies that we have just because I personally believe there is tremendous upside...There’s tremendous upside still, so much room for optimization or so-called low-hanging fruits,” Tan III said.
He cites as an example another Tan-owned company, Philippine Airlines (PAL), which has been able to recover through operational efficiencies.
Although not under LTG, PAL is a success story, which may likewise be replicated in other Tan-owned companies, Tan III said.
“The last few years we’ve done a really good job, for example Philippine Airlines. The team turned around Philippine Airlines from losing several millions of dollars every month back in 2019 to making $206 million in 2022. That’s really one of the success stories that I feel the family and the team have done a great job. I feel similarly to a lot of various companies in LTG as well,” Tan III.
Eventually, Tan III said he is open to exploring new businesses for LTG in the future.
“In the future, there will be a lot of opportunities for us to diversify and continue to grow and we will look into that as well,” he said.
LTG expects to hit a consolidated group net income of P28 billion this year.
Last year, the company reported an attributable net income of P25.14 billion, 24 percent higher than the P20.25 billion reported for 2021.
Tan III was born and raised in Manila, but studied and worked in the US until his father passed away in late 2019, prompting his return to the Philippines.
He assumed various leadership roles within the conglomerate since he settled back in the country in 2019.
The young Tan finished electrical engineering at the Stanford University in 2015, graduating with the Frederick Terman Award, an academic accolade given to Stanford seniors who belong to the top five percent of their class, equivalent to summa cum laude. He also has a master of science degree in computer science and an MBA.