SM sets conditions for considering offer for Equitable PCI

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SM sets conditions for considering offer for Equitable PCI
Posted: 3:01 AM | Mar. 18, 2006
Elizabeth L. Sanchez
Inquirer

THE SM group of mall magnate Henry Sy, including Banco de Oro Universal Bank, is willing to consider an offer from an unnamed buyer to acquire its 34-percent stake in Equitable PCI Bank if three conditions are met, SM insiders told the Inquirer.

The sources said the offer to buy the group's the shares at P95 each, which the state-run pension fund Government Service Insurance System (GSIS) relayed Friday to regulators, would be considered only if "payment will be in cash, the offer is binding, and if there will be no due diligence review."

In a letter to Banco de Oro chairperson Teresita Sy, GSIS president Winston Garcia said the "undisclosed buyer" was interested in buying the stakes of the SM group and Banco de Oro in Equitable PCI Bank at P95 per share.

"If the price is acceptable to the SM Group, kindly inform me so the buyer can immediately discuss with you the proposed purchase of said shares," Garcia said in the letter.

The Inquirer sources said the terms of the offer were unclear on whether the buyer was interested in buying also the GSIS' 12-percent stake in Equitable PCI Bank.

The state-run pension fund Social Security System (SSS), also an Equitable PCI Bank shareholder, said it also wanted to see the terms of the offer.

The SSS owns 29 percent of Equitable PCI Bank, including treasury shares.

"This will provide us the basis for our presentation to the SSS commission and the Supreme Court in relation to a pending case involving the SSS shares in Equitable PCI," SSS president Corazon de la Paz said in a telephone interview.

Banco de Oro corporate information officer Elmer Serrano wrote the Philippine Stock Exchange that it received no formal or binding offer to buy its holdings in Equitable PCI at P95 a share. He said there were no ongoing formal discussions relating to such an offer.

Early this year, Banco de Oro offered to merge with Equitable PCI to create the second or third largest bank in the country with combined assets of P500 billion.

Banco de Oro is currently the sixth largest bank in assets, with P212.3 billion. It is the eighth strongest in capital.

Under the proposed terms of the merger, Banco de Oro will swap 1.6 common shares for one common share of Equitable PCI at the option of the Equitable PCI board of directors. With INQ7.net