MANILA -- Philippine tycoon Andrew Tan resigned Monday as chief executive of Alliance Global Group, and the family-run conglomerate named his son as the company's new CEO.
Kevin Tan, 38, was appointed CEO effective Monday, while his 68-year-old father remains as Alliance Global's chairman. The son becomes the youngest chief executive among major Philippine conglomerates.
"It is time for the younger generation to take the leadership role," the elder Tan said.
Kevin Tan leads a company built by his father from scratch. Alliance Global, which began operations in 1994 as a glass container manufacturer, has grown into a conglomerate with revenue of 141.8 billion pesos ($2.7 billion) as of the end of 2017.
Alliance Global expanded into infrastructure last year and created Infracorp Development, a company led by Kevin Tan.
The conglomerate won government approval last month for an unsolicited 3 billion peso project to build a 2km "Skytrain" monorail connecting its township Uptown Bonifacio development in the city of Taguig to one of the country's busiest train lines in the city of Makati.
Alliance Global carries interests in real estate through Megaworld, which serves as one of the country's leading property companies and provides more than half of the conglomerate's revenue.
Other areas of operation include liquor through subsidiary Emperador as well as fast food through Golden Arches Development, the master franchise holder of the McDonald's brand in the country. Alliance Global's net income in the first quarter dropped 2 percent on the year to 3.5 billion pesos.
Kevin Tan had served as the conglomerate's executive director since April 2012, handling the company's external affairs. He also sits on the board of Alliance Global's subsidiaries.
He was widely expected to succeed his father, and his ascension to CEO comes as another Philippine conglomerate led by an ethnic Chinese family hands the reins to the younger generation. Lance Gokongwei was recently named the new CEO of JG Summit Holdings, taking the helm of the company founded by his father.
One key challenge for the younger Tan involves turning around the conglomerate's gaming and leisure business, Travellers International Hotel Group, whose profit plunged 93% last year as a shooting at Resorts World Manila in June 2017 left 38 people dead, including the gunman. The Philippine gaming regulator suspended casino operations for nearly a month. Travellers' net profit declined 35% on the year to 444 million pesos in the first quarter of 2018.