SEC probe says Ongpin could be guilty of insider trading
MANILA, Philippines—An investigation by the Securities and Exchange Commission (SEC) showed that businessman Roberto V. Ongpin “may have committed insider trading” when he bought Philex Mining shares from the market after concluding a deal with Manny Panglinan.
ROBERTO ONGPIN. RUDY ESPERAS/INQUIRER
This information was contained in a letter of SEC chairperson Teresita Herbosa to Senate Juan Ponce-Enrile, said Senator Serge Osmena on Tuesday.
“Based on the surveillance report of our Market Regulation Department, Mr. Roberto V. Ongpin may have committed insider trading relative to his acquisition of Philex shares through Goldenmedia Corporation on December 2, 2009, in violation of Section 27 of the Securities Regulation Code,” Herbosa said.
Osmena said Ongpin bought the shares just five days after the former finance chief and Pangilinan’s Two Rivers signed a Share Purchase Agreement (SPA) for the block sale of 452,088,160 Philex shares at a price of P21 per share, or a total cost of P9,493,851,360.
“Ongpin bought millions of Philex shares a few hours before the SPA was signed, and he bought these shares at a price much lower than the price that he knew that Pangilinan was buying Philex shares,” the senator said in a statement on Tuesday.
“The higher Pangilinan acquisition cost was known only to Ongpin. This is material information that the public does not know. This is clearly insider trading!” Osmeña stressed.
“How can he say that he did not engage in insider trading when he traded Philex shares based on information that only he was privy to? Pangilinan never announced to the public that he was buying Philex shares at P21 per share,” he added.
Five days after he bought the Philex shares, Ongpin also resigned as director and vice chairman of Philex, the SE noted.
“Mr. Roberto V. Ongpin’s affiliation with Philex as director and vice chairman allegedly classify him as an insider as defined under Section 3.8 of the Securities Regulation Code, notwithstanding his resignation on December 7. If considered as such, he may have been in possession of material information not available to the general public when he purchased Philex shares on December 2, 2009,” SEC probers said.
Insider trading happens when someone makes an investment decision to make a profit or avoid a loss based on information that is not available to the general public
Earlier reports said Ongpin obtained two loans from DBP in 2009—an initial loan of P150 million and a second loan of P510 million. He used the second loan to acquire 50 million Philex shares from the Development Bank of the Philippines.
Ongpin was being questioned at how he managed to obtain the Philex shares from DBP for P12.50 each and later sold these to Pangilinan at P21.
Pangilinan was able to gain control of Philex Mining because of the shares he bought from Ongpin. With a report from Daxim L. Lucas, Philippine Daily Inquirer
Originally posted at 2:56 p.m.
