Piki welcomes olive branch extended by Lopez majority

MANILA, Philippines — Tycoon Federico “Piki” Lopez has welcomed what appeared to be an olive branch extended by the Lopez family majority following the withdrawal by the board of holding company Lopez Inc. of a Feb. 27 resolution removing him as president.

Piki said he views the gesture as a possible first step toward all parties finally resolving the issues dividing the family.

He hopes the other side will back up the gesture “with genuine, positive and concrete efforts leading to an amicable, fair and lasting resolution of the rift within Lopez Inc.”

He is also hoping that the “misinformation harming the Lopez Group” will stop.

The board of Lopez Inc. withdrew on Thursday its Feb. 27 resolution removing Piki as president and CEO of the company, a move seen by the 71 percent Lopez majority as opening a window for family discussions.

The majority said the withdrawal presents an opportunity for the whole family to step back, reconsider their adversarial positions, and look for options that are least injurious to the family, the Lopez Group, and the investing public.

Piki said he remains fully prepared for any outcome following this gesture, given that the formal processes in the Mandaluyong Regional Trial Court and Securities and Exchange Commission (SEC) are proceeding in due course.

Piki has filed a complaint before the Mandaluyong City Regional Trial Court against his cousins in their capacities as directors of Lopez Inc., and has obtained a court order blocking his ouster indefinitely.

He has also filed a complaint to the SEC against ABS-CBN Corp. executives, seeking an urgent investigation for the alleged “systemic fraud, misrepresentation and unabated dissipation” of assets by the company’s top management.

Piki earlier claimed that his removal as president of Lopez Inc. was allegedly due to his refusal to infuse P2 billion in reserve funds from Lopez Inc. as fresh capital for the ailing ABS-CBN.

The Lopez family majority voted to remove Piki as president and CEO of Lopez Inc. in February in a five-to-two board vote, for cause and loss of trust after he allegedly entered into P125-billion deals without any authority from the majority.

They also discovered so-called “poison pills” in the said deals that would penalize the Lopez group and First Gen shareholders up to P24 billion, and cross-default loan provisions should Piki be removed from his job.

In discussing solutions, Piki said he would continue to fulfill his fiduciary duties to all shareholders in the companies of the Lopez Group and will remain steadfast in acting as a responsible steward of these various businesses — particularly First Philippine Holdings Inc. (FPH) and First Gen Corp. — which have institutional minority shareholders with significant economic interests.

Piki said that, in fulfillment of these duties, he supported the agreements with the Prime Infra Group.

First Gen previously said the Prime Infra Group requested changes to the management control provisions in its agreements as a vote of confidence in Piki.

BDO Unibank similarly demonstrated its vote of confidence by issuing standby letters of credit, subject to the continued and active involvement of Piki in the FPH group.

“First Gen’s board of directors – which has its own governance and fiduciary obligations separate from Lopez Inc. and which includes Manuel “Beaver” Lopez Jr., the KKR representative and all independent directors – unanimously approved these transactions,” Piki said.

“It is also anticipated that the other side will address unresolved questions about ABS-CBN so the media firm can finally chart a path to recovery, to protect not only the family legacy, but equally or even more importantly, the welfare of investors and employees,” he said.