Tycoon offers US$10b for Philippine casino

MANILA: Philippine President Benigno Aquino said yesterday his government would study a US$10 billion (US$1 = RM3.14) offer from a local tycoon to take over the government's monopoly casino franchise with Malaysian help.

Ramon Ang (right), vice-chairman of food and beverage giant San Miguel, made the stunning offer unofficially in an interview with the mass circulation Philippine Daily Inquirer, which carried his comments on its front page.

"It is a proposal, it is a very interesting proposal. But at the same time we have to study the matter first," Aquino told reporters. "(We) have to ensure that if we intend to sell something, it is at the best price we can get."

Aquino, who began his six-year term as president on June 30, has said he is looking at privatising state assets to help deal with a growing budget deficit, and the Philippine Amusement and Gaming Corp (Pagcor) could be sold off.

"The sale of Pagcor fits in well with the president's agenda. Why wait for six years to have US$10 billion when you can have US$10 billion in just six months," Ang said, according to the Inquirer. "Isn't this a spectacular deal?"

Ang said he intended to make a formal bid to acquire Pagcor once it was formally put on the auction block for privatisation, the Inquirer reported.

He said he intended to go into partnership with Malaysian magnates Tan Sri Robert Kuok, Tan Sri Ananda Krishnan and Tan Sri Francis Yeoh, according to the report.

"They are all my friends and they are interested in Pagcor," the Inquirer quoted him as saying.

Ang emphasised that he intended to go after Pagcor independently of San Miguel, one of Southeast Asia's leading conglomerates.

A spokesman for Pagcor, Jay Santiago, said privatisation would not occur anytime soon. "It is not as simple as it sounds. Eventually, there will be privatisation, but that is too far off."

"(But) we agree that US$10 billion is a good benchmark. If and when we do go through that process, at least we know we will not be getting anything below US$10 billion."

Pagcor, which operates 41 casinos, reported a net income of 29.62 billion pesos (100 pesos = RM6.99) in 2008. - AFP