Tan conglomerate AGI pumps up capex in bid to carve lifestyle empire

MANILA, Philippines — Alliance Global Group, Inc. announced it would be increasing capital expenditures this year, emphasizing the need to sustain growth momentum across its international and global operations.

In a disclosure sent to the Philippine Stock Exchange on Thursday, the Andrew Tan-led conglomerate said it is allocating P70 billion for capex in 2023, representing a 23% year-on-year increase.

“A firm believer of the country’s attractive long-term growth prospects, the Group is betting on the continued improvement in consumer spending,” says AGI CEO Kevin L. Tan told investors in their annual stockholders’ meeting Thursday morning.

Disclosure broken down showed how AGI’s various businesses intend to spend to churn growth. 

Property developer Megaworld Corp. is looking to burn through P55 billion in capex this year to expand its office, mall, and hotel business segments this year while eyeing to launch 20 new developments as well.

Emperador Inc. allotted P7 billion this year to fund machinery upgrades across its facilities here and abroad. A bulk of that amount, equivalent to an estimated P6 billion, will bankroll the expansion of operations of its distilleries in Scotland.

Travellers International set asie P4 billion to fund ongoing expansion projects at Newport World Resorts Complex. 

Golden Arches Development Corp., which holds the master franchise of McDonald's in the Philippines, will use P4 billion in capex to finance store network expansion. The firm is targeting to open 50 new stores in 2023, picking up the momentum since they opened 45 new branches last year. — Ramon Royandoyan