Lucio Tan

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Lucio Tan
Born (1934-07-17) 17 July 1934 (age 81)
Amoy, Fukien, Republic of China
Residence Philippines
Nationality Filipino
Ethnicity Han Chinese
Alma mater Chiang Kai Shek College
Far Eastern University
Net worth $4.2 billion (January 2015)[1]

Lucio Tan (simplified Chinese: ; traditional Chinese: ; pinyin: Chén Yǒngzāi born 17 July 1934) is a Chinese Filipino businessman with interests in banking, airline, liquor, tobacco and real estate industries.

Early life[edit]

Tan was born in Amoy (now Xiamen), Fujian, China. His parents moved to the Philippines when he was a child.[citation needed]

Tan earned a BS in Chemical Engineering from the Far Eastern University of Manila.[2] Forbes asserts that Tan "worked as a janitor at a tobacco factory"[3] where he presumably also "mopped floors to pay for school"[4]

In 2013, Forbes magazine listed him once again as the second richest billionaire from the Philippines with a net worth of $7.5 billion.[5]


Tan owns Asia Brewery, the second largest brewery in the Philippines, Tanduay Holdings, one of the world's largest rum makers, and Fortune Tobacco, the largest tobacco company in the country.[citation needed]

In 1985, Tan bought Century Park Hotel.

Tan established the Tan Yan Kee Foundation in 1986 in honor of the late Tan family patriarch (see below). In 1988, the Lucio Tan Group of Companies acquired Tanduay Distillery, the oldest maker of rum, from the Elizalde Family. Tan and his group launched a plant modernization and expansion program that increased Tanduay's production by almost 50 times.

Tan later bought the University of the East in 1990, which he considers his biggest feat in promoting education in the country.

In 1993, the country's national flag carrier, Philippine Airlines, joined the list of companies that Lucio Tan controls and manages, and has now turned over the business to Lia Tan.

In 1995, he founded yet another company in the aviation industry. The Macro Asia Corporation was envisioned to be the leading provider of aviation and logistics services. This vision has become a reality as Macro Asia Corporation is now the provider of technical ground handling, engineering and maintenance services, and catering services to the majority of international airlines.

In 2000, Tan became the primary stockholder of Philippine National Bank. The merging of PNB and Allied Bank is expected to be completed before the end of this year.

In an effort to consolidate his business empire, he established the L. T. G. (Lucio Tan Group) as a vast holdings entity for all his stakes in the varied companies that the empire operates. The move should resolve the growing market perception that to date there is still no clear indication of who shall rise to succeed and secure his business empire's continuity.

Business interests[edit]

Major stakes

  • Asia Brewery, the 2nd largest brewer in the Philippines, with a 10% share of the Philippine market.
  • Tanduay Holdings, one of the world's largest rum makers.
  • PMFTC, Inc., the largest tobacco company in the country.
  • University of the East one of the most financially stable universities in the Philippines in terms of assets.
  • Philippine National Bank, the 5th largest bank in the country.
  • Allied Bank, the Philippines' 8th largest lender (Merged with Philippine National Bank).
  • Eton Properties Philippines, the global real estate brand of the Lucio Tan Group.
  • Allied Savings Bank, Subsidiary bank of Allied Banking Corporation and one of the most stable savings bank in the Philippines in terms of assets.
  • Lucky Travel Corporation – Established on June 15, 1983, Lucky Travel is Mr. Tan’s first foray into the travel and tourism industry.
  • The Charter House - is a three-star hotel located in the heart of Makati’s business and commercial district.
  • Grandspan Development Corp. – Established in 1979, Grandspan Development Corp. is an internationally recognized steel fabrication company. It produces structural steel beams, trusses, conveyors, special tanks and vessels, as well as steel trailers and asbestos-reinforced cement sheets.
  • Foremost Farms Inc. – is one of Southeast Asia’s largest and most modern hog-raising facilities.
  • Himmel Industries Inc. – a chemical trading firm, Himmel Industries is located in Barrio Santolan, Pasig City. Established in November 18, 1960.
  • Pan Asia Securities- is the stock brokerage firm of the Lucio C. Tan Group of Companies.
  • MacroAsia Corporation- Complementing the two airlines is MacroAsia Corporation. A publicly listed company, MacroAsia provides catering, ground handling and engineering and maintenance services to its sister companies and more than 20 international airlines landing in the Philippines.
  • Air Philippines/Airphil Express- is one of the fastest growing carriers in the Philippines. Currently controlled and managed by his sister company's group also taken charged by Lia Tan.


In 1997, Forbes, in an article entitled "A report card on Asia" complained about the "considerable corruption still prevalent" in the Philippines, bolstering that claim by citing how Tan "single-handedly held up a tax reform intended to remove special privileges for local tobacco and beer producers."[6]

In 1998, Forbes' reported that Tan was spending his free time "[j]ousting with the government over charges of tax evasion" and with Philippine Airlines "shareholders who tried to block his bid for the airline."[7]

According to January–March 1999 edition of the Philippine Center for Investigative Journalism, Solita Monsod, an economics professor at the University of the Philippines and former Economic Planning Secretary, was quoted as saying that "Lucio Tan is a role model for the worst kind of conduct as far as our national objectives are concerned. He signals that you can evade taxes and get away with it, pay the courts and get the judges to decide in your favour, get good lawyers and delay your cases. The messages that are given by the kind of treatment that he gets from the Government are the antithesis of what we need for sustainable development: an even playing field and Government intervention of the right kind." [3]

The Presidential Commission on Good Government ("PCGG") originally filed a case against Tan in July 1987, and has since amended it twice, the last time being on 5 September 1991. According to the PCGG, the state is entitled to PHP 50 billion in damages and PHP 1 billion in legal expenses.[4] In addition, the state was seeking to recover 60% of Tan's holdings in companies that Tan held in trust for the former president Marcos – such as Fortune Tobacco, Asia Brewery, Allied Banking Corp., Foremost Farms, Himmel Industries, Grandspan Development Corp., Silangan Holdings, Dominium Realty and Construction Corp., and Shareholdings Inc. – as the PCGG alleges that they were illegally acquired by Marcos using government funds.[5]

After filing the case in July 1987, the PCGG seized control of Tan’s companies, continuing to do so until 2006 when the anti-graft court Sandiganbayan nullified the writs of sequestration on Allied Banking Corp., Fortune Tobacco, Foremost Farms and Shareholdings Inc. The court ruled the writs had no basis as there was no prima facie proof that any of Tan’s assets were obtained illegally.

The PCGG soon afterwards filed a petition to the Supreme Court. On December 7, 2007, the Supreme Court affirmed the decision of the anti-graft court. The Supreme Court found no proof that Tan, his family, or his various businesses took undue advantage of their relationship with former President Marcos. Finding no factual basis for the sequestration of the stocks, the Supreme Court denied the PCGG’s petition, according to a court statement.[6]

In an April 29, 2009, letter filed at the anti-graft court, the PCGG announced that it is "resting its case" and terminating its presentation of evidence in the PHP 51 billion lawsuit. This, the report said, came as a surprise as government lawyers had earlier insisted in court that they still have several key witnesses, including former First Lady Imelda Marcos.[7]

Nevertheless, questions remain. During the Estrada presidency, "It came to the point that I was wondering whether they were lawyering for us or for Fortune Tobacco", said former Internal Revenue Commissioner Liwayway Vinzons Chato. Chato was also cited as saying that a folder of documents containing important evidence against Fortune had mysteriously disappeared. Eventually she was able to create a case against Tan, which she lost at the Court of Tax Appeals, as one of BIR's lawyers assigned to the Solicitor General was, according to Chato, "arguing the case for Fortune and we were sold out".[3]

The same article also said that one of the three judges who ruled in favour of Fortune Tobacco was Manuel Gruba, the brother of Lily Gruba, one of Tan's lawyers in the case. It was later rumoured, the article said, that President Estrada allowed Tan to name the new BIR Commissioner to replace Chato. Beethoven Rualo, a close associate of Tan, was eventually chosen for the role. Within five months of Rualo's appointment, two tax evasion charges against Tan's firms that Chato had been pursuing – one against Allied Bank for PHP 338 million, and another against Fortune Tobacco for PHP 8 billion – were reduced to zero and PHP 5 million respectively.

Personal life[edit]

He is married and under his helm are his children of whom some may be poised to follow in his footsteps. Michael Tan currently working with Asia Brewery Inc. after being replaced by Lucio Tan Jr. who now heads the Eton Properties Inc. Timmy Tan, the self-made entrepreneur with SK Technolube Corp and La Isla Publishing Corp ranking progressively at the country's top 2013 corporations and Vivian Tan who dwells in education and low level politics.


  1. ^ "Lucio Tan". Forbes. Retrieved 17 January 2015. 
  2. ^ "Lucio Tan (Philippines); Cigarettes, Beer And Airline Tycoon". Internet Wayback Machine. Retrieved 30 March 2014. 
  3. ^ "ASIA: 50 Asian billionaires on the list, up from 44 last year; Lucio Tan". LLC. 5 July 1999. Retrieved 30 March 2014. 
  4. ^ "The Philippines' 50 Richest: #2 - Lucio Tan & Family". LLC. July 2013. Retrieved 30 March 2014. 
  5. ^ "The Philippine's 50 Richest: Lucio Tan & Family". July 2013. Retrieved 2014-03-30. 
  6. ^ "A report card on Asia". Forbes magazine. LLC. 1997-02-24. Retrieved 30 March 2014. 
  7. ^ Bruce, Katherine; Karmali, Naazneen; Mao, Philippe; Miyazawa, Kazumi; Shook, Carrie; Weinberg, Neil (1998-07-06). "ASIA; Lucio Tan". LLC. Retrieved 30 March 2014. 

Further reading[edit]

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