this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=06&dd=05&file=9
Posted: 8:40 PM | Jun. 04, 2006
Elizabeth L. Sanchez
Inquirer
Published on page B6 of the June 5, 2006 issue of the Philippine Daily Inquirer
AN OFFER FROM HONG KONG INVESTMENT management firm Value Partners Ltd. to buy shares of the Philippine Stock Exchange has elicited lukewarm response from stockbrokers, sources said.
VPL has offered to buy up to 5 percent or P155.4 million worth of PSE shares. It would help boost PSE efforts to become a fully demutualized company.
Demutualization will convert the bourse from a company controlled by stockbrokers to one widely owned by various stockholders.
So far, brokers holding a paltry 88,000 shares were willing to unload, sources said. PSE closed at P210 last Friday. Another group of brokers owning an estimated 100,000 shares was reportedly also interested to sell its shares to the Hong Kong group. PSE management will ask brokers to sign a letter of interest indicating the price at which they are willing to unload and the number of shares involved. Sources estimated the PSE's indicative price was between P200 and P300 a share. At P200 a share , the PSE is trading at 26 times earnings based on last year's net income, which is at a discount to other bourses in the Asian region. VPL, founded in 1993, manages more than $3 billion in funds from individual and institutional investors and focuses on "great-but-under appreciated" Asian businesses. It owns 8,340 PSE shares, acquired through small purchases in the open market.
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