Ongpin group takes over PBCom

MANILA, Philippines—A group led by Marcos-era Trade Minister Roberto V. Ongpin completed on Friday the acquisition of a 97-percent stake in Philippine Bank of Communications via special block transactions at the local stock exchange worth P4.7 billion.

According to a memorandum posted by the Philippine Stock Exchange, Ongpin’s takeover was sealed through the purchase of 47.09 million common shares and 120 million preferred shares at the same price of P27.88 per share.

The block of common shares was thus worth around P1.31 billion while the  block of preferred shares was worth around P3.34 billion.  The block transactions were completed at the stock market in early Friday trading.

PBCom vice chair Eric Recto confirmed in a text message that this was the official transfer of control of  the bank to Ongpin’s group from the former major shareholders:  the Chung, Luy and Nubla families.

The Ongpin-led ISM Communications Corp. had been chosen by the shareholders to come in as the bank’s “third party” investor. This was in line with a commitment made by feuding shareholders to the state-owned Philippine Deposit Insurance Corp., which backed the bank’s rehabilitation in 2004.

The entry of Ongpin’s group had earlier been approved by the Bangko Sentral ng Pilipinas.

This transaction has been exempted by the Securities and Exchange Commission from the mandatory tender offer to minority investors.

PBCom shares are now trading at a much higher price than Ongpin’s entry price, having run up at the stock market ahead of the entry of a new strategic investor, making any tender offer a futile exercise.