After about 20 years of steering the Aboitiz Group towards becoming one of the biggest power industry players in the country, Erramon “Montxu” I. Aboitiz is stepping down as president and CEO effective January 1, 2020.
He will be replaced by his younger brother, Sabin M. Aboitiz, at the Aboitiz Equity Ventures, Inc. (AEV) and by Emmanuel V. Rubio at the Aboitiz Power Corporation (AboitizPower).
AEV is the Aboitiz Group’s listed holding company while AboitizPower, also a publicly held company, serves as its power business unit.
Sabin is currently the president of AEV Infra Capital Inc., AEV’s infrastructure unit, and president and CEO of Pilmico Foods Corporation, the group’s flour milling unit.
His appointment as president and CEO of AEV upon Erramon’s retirement was approved by the Board in a special meeting held on December 11, 2018.
Rubio’s appointment was approved by the AboitizPower Board during its regular meeting on April 22, 2019, the company said in a disclosure to the Philippine Stock Exchange on April 23, 2019.
Erramon has served as AboitizPower president and CEO since the company was incorporated on February 13, 2008.
At the time, he was also the executive vice president and chief operating officer of parent firm AEV, a post he held since 1994.
In September of that year (2008), the Aboitiz Group announced that it was divesting its shipping and logistics business to focus on power and financial services.
The conglomerate had been in the transportation business for over 100 years, having started with one ship to transport hemp from one island to another in 1907.
At the time of the divestment, Aboitiz was operating the brands Superferry, Supercat and 2GO.
Less than a year later, Erramon also took the helm at AEV, having been appointed as president and CEO.
Divestment of the conglomerate’s shipping and transportation business was completed in 2014. The proceeds from the sale of these businesses were invested into the Aboitiz Group’s power and financial services units.
The group entered the power industry with the acquisition of a 20% stake in the Visayan Electric Company, Inc. (VECO) in the early 1900s. It went into power generation in 1978 through HEDCOR.
AboitizPower got listed on the Philippine Stock Exchange in July 2007, less than a year after it was incorporated. It is now engaged in power generation, distribution and retail electricity services.
As of end-2018, it has total installed capacity of over 3,000 megawatts and is seen to exceed its target of 4,000 MW by 2020. The company is among the largest power producers in the Philippines.
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AboitizPower also owns distribution utilities in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.
Erramon was supposed to retire in 2016, based on company policy to retire executives when they turn 60. The Board, however, extended his term for another three years until December 31, 2019. (Ventures Cebu)