Lance Gokongwei’s game plan is to list family-owned businesses once they reach maturity

Gokongwei-led conglomerate JG Summit Holdings Inc. plans to take its other businesses and subsidiaries public once they reach a certain level of maturity.

JG Summit president and CEO Lance Gokongwei said the goal is for these mature subsidiaries to have their own independent listings, noting the importance of determining the role of the holding company right from the start.

“For us, its (referring to JG Summit) main job is to allocate limited resources and that’s what we consider capital and talent to determine strategy, build centers of excellence, and create synergies and ecosystems among our businesses,” Gokongwei said.

“We believe, though, that the holding company should have a light touch on their operating subsidiaries. Once they reach a certain level of maturity, they should have the independence of balance sheets and boards to pursue their own destiny,” he added.

Robinsons Land Corp. was the first of the Gokongwei Group of Companies to list on the stock exchange back in 1989. Parent holding company JG Summit listed a few years later in 1993.

Other JG Summit subsidiaries listed on the local bourse include Universal Robina Corp., Cebu Pacific and RL Commercial REIT.

Gokongwei said the holding company is primarily a “capital allocation device” where investors or shareholders can benefit from “the entrepreneurial spirit of the management and the ecosystems for new businesses that we may develop, but shareholders who prefer more focused plays either in consumer goods, property, or the airline business can make investments in those specific companies.”