J.G. Summit to spend at most $25M for capex

J.G. Summit Holdings Inc., the investment firm of the Gokongwei family, on Thursday said it would be setting aside anywhere between $20 million and $25 million for its capital expenditures this year. Lance Gokongwei, J.G. Summit president and CFO told reporters that bulk of the capex will go to its food and beverage unit Universal Robina Corp. J.G. Summit also has interests in real estate, banking, telecommunications and textiles. In 2006 the conglomerate spent some $28 million as its capital expenditures. Following the stock rights offering of units URC and Robinsons Land Corp. last year, Gokongwei said the conglomerate "at some point in the future" will also consider increasing its free float in the market but declined to elaborate. In January next year, URC will also be retiring $110 million in bond and will do so without another "refinancing". JG summit also has a $300 million bond that will be maturing in June 2008. However the company has yet to decide on how to go about in retiring the bond. "The decision will have to be made before June 2008 and we still have to weigh the availability of the funds before then," he said. Gokongwei also said the conglomerate is expecting a better financial performance this year owing to good economic prospects of the Philippines and booming property, airline and telecommunications sectors in the country. - Cheryl Arcibal, GMANews.TV