Who Is Dennis Uy, The Guy Behind The Country’s Third Telco?

buddywbuddyw Member PEx Influencer ⭐⭐⭐

Who Is Dennis Uy, The Guy Behind The Country’s Third Telco?

The reality show “Philippines’ Next Top Telco” is coming to a close and right now, there is one player ahead of the competition.

After three companies submitted their documentary requirements to the government, only one company met the requirements and was declared the provisional winner: Mislatel.

What is Mislatel?

Mislatel will be a consortium of different companies and the building blocks of the third potential telco.

It’s comprised by the following companies:

  • Mindanao Islamic Telephone Company
  • Udenna Corporation
  • Chelsea Logistics
  • China Telecom

China Telecom is a state-owned communications company in, well, China. However, little is known about Mindanao Islamic Telephone Company.

The other companies that are part of the consortium are Udenna Corporation and Chelsea Logistics Holdings—and there is one guy behind these empires.

His name is Dennis Uy and he’s on a meteoric rise to become one of the biggest and most successful businessmen in the country.

The President himself lauded Uy as a person who “exemplifies the resilience of the Filipino entrepreneurial spirit.” His interests are diversified across numerous sectors and now he’s out to get the lion’s share in the telecom industry.

Just who exactly is Dennis Uy? Let’s talk about his business activities.

The rising phoenix

The public may have just recently heard of his name, but Dennis Uy’s empire has been in the making for a while now. Like most stories, his story must start in the beginning, going all the way to his roots in Davao.

In 1998, former President Fidel Ramos signed the Republic Act No. 8479, or more commonly known as the Oil Deregulation Law to liberalize the energy sector and to address the deficit caused by the oil price stabilization fund by the government. Since then, no new oil company made it to the major playing field because according to EPUS Global Energy, “even new oil industry players get their supply from the giants.”

So that was the case until Dennis Uy came into the scene.

In 2002, a young Dennis Uy opened a petroleum company that would eventually be renamed to Phoenix Petroleum. The company went public in 2007, the first oil company to do so since the Oil Deregulation Law.

Since going public, the company has continued their expansion efforts, expanding its serviced areas beyond its home court. It even has a basketball team, the Phoenix Fuel Masters and a convenience store chain, FamilyMart.

In 2018, the company sold its petrochemical logistics and oil terminal ventures to its parent company, Udenna.

As of writing, Phoenix’s market capitalization is around P15.4 billion.

The parents pay rents

Talking about Phoenix Petroleum is just scratching the surface of Uy’s story.

Beyond Phoenix, Uy’s success is tied to the parent company, Udenna. Registered a few months before Phoenix became officially a company, Udenna serves as the holding company for all of Uy’s ventures, including Chelsea Logistics.

Under Udenna’s highly diversified portfolio are the following subsidiaries:

  • Phoenix Petroleum
  • Chelsea Logistics Holding
  • Udenna Development Corporation
  • Phoenix Petroterminals and Industries
  • Udenna Investments
  • Udenna Management and Resources
  • Enderun Colleges
  • 2GO
  • H2O Ventures

This October, Udenna is set to strike a deal with ISM Communications to make a share-swap deal. To absorb the Uy-led ventures, Udenna will issue two billion Udenna shares to ISM, making it wholly owned by the latter. In exchange, ISM will be transformed into Udenna Holdings and it will issue 24.05 billion shares to people with a stake in Udenna. This will bolster ISM’s capital stock from P2.8 billion to P75 billion easily.

If deal pushes through this December, Uy’s parent company will finally become a publicly listed company, just in time should it be declared that Mislatel will be the country’s third telco. If both of Uy’s companies are publicly traded, then it will become a big advantage to Mislatel’s big for the lion’s share.

What will the benefits that can be potentially reaped by Mislatel with this? For starters, having not one but two publicly traded companies in its conglomerate will secure its credibility with the public, which can further translate to sales and subscriptions once its network goes live.

In addition to brand equity and powerful advertising, they can also have the power to raise additional funds through stock issuance, both directly and indirectly. Should they issue more shares to the public, they can further boost their market capitalization and having a bearish trading can spur its prices upward. Meanwhile, they can secure loans from financial institutions because they have the leverage to do so. All in all, this is a win-win if Mislatel secures the spot for the third telco.

The timeline of a buying spree

Since President Duterte’s ascent to the highest position in the country, Uy’s success has been on a sizzle.

The Nikkei Asian Review even described his empire’s growth as due to the Davao-based entrepreneur riding “the Philippine president’s coattails to success.

Since he unveiled his plans to acquire ISM Communications through a share-swap deal, details of his shopping spree have been made public.

Some of the spending Uy made since 2016 were the following:

  • Global Gateway Logistics City in Pampanga for P50.2 billion
  • Enderun Colleges for P2.2 billion
  • Starlite Ferries for P1.68
  • FamilyMart for an undisclosed amount
  • A 39.71 percent stake in 2GO Group through Chelsea Logistics

In a report by the Philippine Daily Inquirer, Udenna is reported to have acquired P85.8 billion in debt by the end of 2017. Currently, Udenna owed P3.74 billion in finance charges, which is almost double of its income last year at P1.88 billion.

Another deal the company bagged the $300-million deal in Cebu to construct a gaming hub in a beachfront property in Lapu-Lapu City.

Banks who supplied the holding company with the capital to do its binge shopping were BDO Unibank, Philippine National Bank, and the Bank of China, one of the foreign financial entities courted by Duterte in its overseas trips to China.

Uy’s aggressiveness doesn’t stop there, with its eyes trained on having more stakes in the infrastructure sector. According to reports, the company submitted an unsolicited offer to put up a monorail system in Davao. Meanwhile, Chelsea Logistics received tailwind as the original proponent status has been approved to pour P49 billion in the rehabilitation of the Davao International Airport.






Comments

  • buddywbuddyw Member PEx Influencer ⭐⭐⭐

    Dennis Uy admits close ties with Duterte, Cabinet members


    MANILA, Philippines — Davao-based businessman Dennis Uy admitted his close ties with President Rodrigo Duterte and some of his Cabinet members when he faced a Senate probe on Thursday.

    Uy made the admission when grilled by opposition Senator Antonio Trillanes IV during the hearing of the Senate committee on public services, which inquired into the government’s selection process of the third telecommunications player in the country.

    The businessman is the chief executive officer of Udenna Corporation, which is part of Mislatel Consortium that was named last November as the country’s new dominant player.

    Uy flip-flopped when Trillanes first asked about his closeness to Duterte.

    “Are you close to President Duterte?” the senator asked, to which the businessman answered no.

    “No, you’re not?” Trillanes asked again.

    “I’m from Davao…” Uy said but he was interrupted by the senator, who pressed for a categorical answer to his question.

    “Are you close to him or not?” Trillanes asked.

    This time, Uy answered, “Yes.”

    The senator next asked if the businessman was also close to the President’s former special aide, Bong Go. Uy also responded in the affirmative.

    Still responding to Trillanes’ queries, Uy admitted to contributing P30 million to Duterte’s campaign in 2016.

    Uy flip-flopped again when Trillanes asked if other officials of Udenna also contributed to Duterte’s campaign.

    “Hindi po,” the businessman said.

    “Hindi? Are you sure? May listahan ako dito,” said Trillanes.

    The senator then enumerated some of the company’s officers, including Uy’s wife, Cherylyn Uy, who had contributed to the President’s campaign.

    Uy confirmed all the names and contributions enumerated by the senator, including the financial assistance of his business partner, Efren Uy, board member of Chelsea Logistics Holdings Corp.

    Aside from Uy’s firm, Mislatel Consortium is also composed of Chelsea Logistics and state-run China Telecommunication.

    Uy also confirmed that Finance Secretary Carlos Dominguez III’s brother used to be a director of his Phoenix company.

    Trillanes said the Finance secretary happens to be part of the oversight committee on selection of the third telco.

    “So kaibigan mo si Bong Go, si Duterte kaibigan mo, yung kapatid nung Secretary of Finance na member oversight committee, dati mong members ng board of directors, yung officers ng board of directors mo ay nag-contribute kay Mr. Duterte — so ano ito, medyo lumiliwanag yung pagkaluto dito ano?” the senator asked.

    Uy also confirmed being with members of the oversight committee like Executive Secretary Salvador Medialdea, Dominguez, and National Security Adviser Hermogenes Esperon Jr in a private jet which the businessman partly owned.

    Trillanes noted that during this time, the government was at the “peak” of choosing the third telco.

    Uy also happens to be Duterte’s adviser on sports.

    “Yes alam niyo, on its face, marami na akong nakitang ano rito e mali—whether conflict of interest, graft, or direct bribery,” the senator said

  • pollywogpollywog ...just because PEx Influencer ⭐⭐⭐
    Eliseo Rio Jr.

    During the Senate Hearing last Thursday, January 24, Senator Drilon made it appear that the Selection Process for the Third Telco done by DICT/NTC was faulty considering that the awarded New Major Player, Mislatel, has no valid franchise as required by the Terms of Reference (MC-09-09-2018), since its franchise is ipso facto revoked. That is far from the truth. NTC took much effort in doing its due diligence to make sure that all requirements of the MC are complied with. First, NTC, during the pre-qualification period, wrote Congress if the franchise of Mislatel is still valid, and got the answer that on record, their franchise has never been revoked. In other words, since there is no declaration of revocation by competent authorities, NTC has no right to consider the francise as revoked as the presumption of regularity and the validity of the franchise must be respected. This is no different from marriages which the law says are void ab initio. Parties still need to go to court and ask for a declaration of nullity of marriage, and absent such, no other person or entity, private or public, can claim that said marriage is void ab initio and just throw away the marriage certificate, and ignore all rights granted by law to the married couple. Also, the Supreme Court has already ruled that since a franchise is a property right, there must be due process for it to be revoked, notwithstanding the ipso facto provision. A direct action for a quo warranto is the proper action to take. To date, no quo warranto proceeding has been filed by the State against Mislatel. The truth is that so many telcos may have in one way or another "violated" their franchises, but without due process, none of these franchises have been actually revoked. If we now consider them revoked without due process as what Senator Drilon would want to do with Mislatel, contratry to the Supreme Court decision that revocation of franchises can only be done through a quo warranto action, then our whole Telecom industry will fold up, bringing us back to the dark ages. Surely, this would be against public interest.

    All the points brought out by Senator Drilon have been extensively deliberated in the Lower House of Congress. But after voting, Congress approved the transfer of Mislatel's franchise to the consortium and brought it up for the consideration the Senate. The Senate will still vote on it as a body, before it can be finally resolved whether Mislatel would be the third telco. All these are within the post-qualification requirements of the selection process and still within schedule as the deadline is on February 17, 2019.

    Finally, I hope Congress consider changing some of the provisions in the franchise it grants telcos. For example, it is almost impossible now to roll-out and become operational within a year as a telco. Much more if there are fortuitous events like natural and man-made calamities that can delay the roll-out. This would make franchises much easier to comply with.


  • pollywogpollywog ...just because PEx Influencer ⭐⭐⭐
    edited January 26

    PLDT and GLOBE must be very happy that there might be "no" 3rd Telco.







  • knorrknorr 8anned by Abmin PExer
    .                                              .

  • gotta lick itgotta lick it Member PEx Influencer ⭐⭐⭐
    edited January 29
    pollywog said:

    PLDT and GLOBE must be very happy that there might be "no" 3rd Telco.







    edi ..... mag-rebid.



    pero is reshuffle muna yun bid committee kasi sabi nila "...... ONLY ONE SUBMITTED the COMPLETE REQUIREMENTS."

    ang totoo pa "...... WALANG NAKAPAG-SUBMIT ng COMPLETE REQUIREMENTS."
  • buddywbuddyw Member PEx Influencer ⭐⭐⭐

    Kuneksyon lang puhunan! De Lima likens Dennis Uy, Davao Group syndicate to Marcos cronies

    Senator Leila de Lima believes businessman Dennis Uy bagged the third telco slot only because of his connections to President Rodrigo Duterte.

    “Duterte’s Davao Group, through Dennis Uy, is on a roll in cornering lucrative government contracts,” said de Lima.

    She cited Uy and his close allies’ donations to Duterte’s campaign aswell his generosity in lending his private jet to top Cabinet officials.

    De Lima zeroed in on National Security Adviser Hermogenes Esperon for turning a blind eye on Uy’s glaring conflict of interest.

    She said Esperon was part of the oversight committee on the third telco player contract yet he did not see anything wrong in taking free rides on Uy’s private jets.

    By some “magic trick”, de Lima said Uy’s Mislatel was adjudged the lone qualified bidder for the third telco slot despite being a paper corporation with no track record whatsoever.

    De Lima said this wheeling-and-dealing of government contracts was nothing short of “graft and corruption, if not plunder.”

    De Lima said Uy’s wealth building was similar to the “cronyism practised by Marcos that made his family and friends the richest people in the Philippines, and some of the richest in the world.”

    “What is more worrisome is that under Duterte, there is even no longer any pretense to conceal the use of public authority to serve private interest. This is corruption at a new level, one that is characterized by impunity, shamelessness, and disregard for legal niceties and public opinion,” said de Lima.

    “Masyado nang lantaran at garapal ang paggamit sa gobyerno ng sindikatong Davao Group sa kanilang pagpapayaman. Hindi natin pwedeng hayaang mamayagpag muli ang kawalanghiyaan ng iilan gamit ang

  • gotta lick itgotta lick it Member PEx Influencer ⭐⭐⭐

    here is the catch why MISLATEL should be cancelled .... 

    .... Dennis Uy has no intention to fulfill the GOVERNMENT parameters of the Telecom Franchise.




    kumpeto yun documentation pero hindi nila susundin yun batas tulad ng pag-IPO ng public stocks.

  • knorrknorr 8anned by Abmin PExer
    .                                      .

  • PorferioKabisigPorferioKabisig Member PEx Influencer ⭐⭐⭐
    knorr said:
    .                                              .

    Padrino pala ito. Kakabwisit talaga sa bansang ito.
  • knorrknorr 8anned by Abmin PExer
    .                                                   .

  • BeerhandBopBeerhandBop I Am WHIP PEx Influencer ⭐⭐⭐
    even the blind man saw it coming. LoL. 
  • EgozumEgozum Member PEx Influencer ⭐⭐⭐

    UP after 10 YEARS

    AFP may still withdraw from Dito Tel towers deal, says spokesman






    The Armed Forces of the Philippines may still withdraw from the agreement it recently signed with Dito Telecommunity Corp., formerly known as Mislatel Co. Inc., on the installation of telecommunications facilities inside military bases, a spokesman said on Monday.

    "Oo siyempre naman... anything that will compromise national security, kailangan nating aksyunan," AFP public affairs chief Colonel Noel Detoyato said, noting that the said pact is open for investigation.

    Detoyato, however, insisted that the military at present did not see installing telecommunications facilities inside military camps as a risk to national security.

    "Wala kasi those are just ano nga, relay stations nga 'yan... makiki-locate 'yan sila doon kung nasan ang mga antenna, makita niyo kung bumibyahe kayo, may mga tuktok ng bundok na mga tower," Detoyato said.

    "Oo, sa amin lahat 'yun... sa Tagaytay meron tayo doon, 'yung relay station and reflectors," he added.

    Senator Francis Pangilinan last week expressed concern over the agreement, saying it raised “fears of electronic espionage and interference given the record of some Chinese firms for engaging in this illegal activity.”

    "Why build these telco towers inside camps in the first place? Are there no other available sites for their towers? How much are they paying the government for these? How can we be assured that there will be no breach of national security and respect for privacy of communications and correspondence?" Pangilinan said.

    The said agreement was inked by the Deputy Chief of Staff for Communications, Electronics, and Information Systems (CEIS) and Dito Tel chief administrative officer Adel Tamano at Camp Aguinaldo, Quezon City last September 11.

    AFP spokesman Marine Brigadier General Edgard Arevalo has said that the presence of the structures inside military camps would not harm the country's national security, adding that it has more gains than risks.

    Senator Francis Pangilinan last week expressed concern over the agreement, saying it raised “fears of electronic espionage and interference given the record of some Chinese firms for engaging in this illegal activity.”

    "Why build these telco towers inside camps in the first place? Are there no other available sites for their towers? How much are they paying the government for these? How can we be assured that there will be no breach of national security and respect for privacy of communications and correspondence?" Pangilinan said.

    Dito Tel consists of Udenna Corp., its subsidiary Chelsea Logistics and Infrastructure Holdings Corp., and state-owned China Telecom Corp. Ltd.

    Defense Secretary Delfin Lorenzana said he would study first the agreement between the military and the China-backed telecommunications firm before approving it.

    In a text message, Lorenzana explained that he was travelling when the news about the agreement between the AFP and Dito Telecommunity Corp. broke.

    "When I inquired, the CSAFP (Chief of Staff of the AFP) said the MOA (memorandum of agreement) is going to my office for my approval. So, now I will scrutinize it carefully before giving my approval," Lorenzana said.

    It was Presidential Spokesman Salvador Panelo who bared in a press conference that the Defense chief was supposedly not aware of the controversial agreement.

    Under the deal, the telecommunications firm will pay rent through the AFP CEIS in the form of equipment, upgrades, services, and training equivalent to the monetary value of the lease and subject to inflation.

    To cover the issue of electronic espionage, Dito Tel has ensured that the facilities would not be used to obtain classified information.



  • EgozumEgozum Member PEx Influencer ⭐⭐⭐
    Palace says Lorenzana unaware of Armed Forces deal with China-backed Mislatel



    MANILA, Philippines — Defense Secretary Delfin Lorenzana is not aware of the agreement that would allow a China-backed telecommunications firm to build its communication facilities inside Philippine military camps, Malacañang said Monday.

    Presidential spokesperson Salvador Panelo said Lorenzana would look into the agreement, which was signed last Wednesday by the Armed Forces of the Philippines and Dito Telecommunity, formerly known as Mislatel.

    Dito Telecommunity is a consortium led by Dennis Uy, a Davao-based businessman and a campaign contributor of President Rodrigo Duterte, and is composed of China Telecom, Chelsea Logistics and Infrastructure Holdings Corp.

    "The DND (Department of National Defense) Secretary texted me about it and said he doesn’t know anything about it and he is going to investigate and ask the concerned people involved in the deal. So, we will wait for his findings," Panelo said in a press briefing.

    Asked if the military can drop the deal given concerns about its possible impact on national security, Panelo replied: "Certainly, if it involves national security then this government can do something about it."


    Under the deal, the military will identify areas where Dito can put up its facilities “without undermining the operations of affected units.”

    Maj. Gen. Adrian Sanchez, Armed Forces deputy chief for communications, electronics and information systems, and Dito Chief Administrative Officer Adel Tamano signed the deal in behalf of their respective entities.  

    The agreement drew flak from senators who are worried that the putting up of communications infrastructure inside military camps could lead to interference and electronic espionage.


    Panelo said Lorenzana and National Security Adviser Hermogenes Esperon, Jr. would be undertaking measures to respond to the senators' concerns.

    The Philippines and China are embroiled in a longstanding dispute over the resource-rich West Philippine Sea.

    An international tribunal has voided China's expansive maritime claim in the area and has affirmed the Philippines' sovereign rights over its exclusive economic zone but Beijing refused to recognize the ruling.


Leave a Comment

BoldItalicStrikethroughOrdered listUnordered list
Emoji
Image
Align leftAlign centerAlign rightToggle HTML viewToggle full pageToggle lights
Drop image/file