Sun Microsystems in RP quiet on parent's buyout

MANILA, Philippines - The Philippine unit of Sun Microsystems has yet to make an announcement regarding its current ownership structure after its parent was acquired by Oracle Corp. on Monday. Currently, Sun Microsystems Philippines’ ownership structure is a joint venture agreement, reportedly the only such arrangement in the world. Without giving any specifics, Sun Microsystems Philippines merely said that the Oracle-Sun arrangement “is a great partnership between two technology titans," Cynthia R. Mamon, the Sun Philippines’ first and only managing director in the unit’s entire history. “Sun Microsystems should still be the trusted information technology partner/provider to our clients and partners in the Philippines," said Mamon, whose family used to own the local unit. Sun’s local unit is owned by British technology company BT, which acquired shares of Singapore-based Frontline Technologies in March 2008. In July 2001, Frontline bought 49 percent held by the Mamon family through IT Holdings Inc. for $2.82 million. IT Holdings was the partner of Sun Microsystems USA. Shortly after, Frontline gained complete control of Sun Philippines but nevertheless allowed Mamon to head Sun Philippines even though BT Philippine head Nio Cruz already moved in at its local office in Makati. As the ownership continued to change hands, Sun Philippines continued to operate profitably even as the parent and its other subsidiaries struggled financially. This was mainly due to the telecommunications accounts and government contracts that Mamon was able to close. With Oracle’s purchase of Sun Microsystems, it is not known if Oracle would maintain the joint venture arrangement (BT-Sun) or if it will buy out the shares of BT in SunPhil so it can create a full-fledged subsidiary. Oracle currently has a fully owned Philippine subsidiary headed by its managing director, Ryan C. Guadalquiver. Similarly, the company’s Singapore-based regional public relations group was also unable to issue a categorical response when asked for a comment. Kelly Long, Sun Microsystem Singapore’s PR head, said in a text message that media queries are being handled by the company’s US headquarters. In an April 20 announcement that surprised many, Oracle and Sun Microsystems said they have entered into a definitive agreement under which Oracle will acquire Sun for approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt. Two substantial Sun assets that Oracle will be acquiring as part of the deal include Java and Solaris. Java is one of the computer industry’s best-known brands and most widely deployed technologies, and it is the most important software Oracle has ever acquired. The Sun Solaris operating system, on the other hand, is a platform for the Oracle database, Oracle’s largest business. “The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems," Oracle CEO Larry Ellison said in the statement. Sun chairman Scott McNealy said in the same statement that Oracle and Sun have been industry pioneers and close partners for more than 20 years and their combination is a natural evolution of this relationship. “This is a fantastic day for Sun’s customers, developers, partners and employees across the globe, joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace," Jonathan Schwartz, Sun’s CEO, also said in the statement. - GMANews.TV