GSIS to remain shareholder of Metro Pacific even after delisting-Veloso
MANILA -State pension fund Government Service Insurance System (GSIS) said moves to aggressively raise its stake in Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC) were not hostile and it plans to remain an investor even after the company completes its delisting from the Philippine Stock Exchange.
GSIS, led by veteran banker Jose Arnulfo “Wick” Veloso, issued the clarification in a letter to the bourse on Sept. 6 amid speculation it increased its stake from 3 percent to nearly 12 percent over the past two weeks to hinder the delisting process or seek a higher buy out price than the P5.20 per share tender offer.
GSIS said it will remain a major investor in Metro Pacific, one of the country’s biggest infrastructure companies.
“The GSIS is aware that a petition for voluntary delisting of MPIC has been filed with the PSE,” it said in the letter.
“The GSIS intends to remain a shareholder of MPIC after the completion of the voluntary delisting,” it added.
Moreover, GSIS clarified its stake shall be considered non-public since it exceeds 10 percent, although stockbrokers said this was subject to interpretation.
Metro Pacific’s portfolio includes Manila Electric Co., Maynilad Water Services, Metro Pacific Tollways, the Light Rail Transit Line 1 and a chain of private hospitals, including Makati Medical Center and Asian Hospital and Medical Center. It also announced its foray into agriculture to meet the country’s food security concerns.
Last August, Metro Pacific chief financial officer June Cheryl Cabal-Revilla said they would likely exceed core profits of P16.1 billion this year—beating the past record in 2019 of P15.6 billion.
Pangilinan, the chair and CEO of Metro Pacific, earlier said their main reason for taking Metro Pacific private was the undervalued share price even when accounting for the typical discount given to conglomerates and holding companies.
Meanwhile, the tender offer deadline is scheduled to lapse on Sept. 7, 2023 while the target date of delisting is on Oct. 9.
The tender offer was launched by Japanese industrial giant Mitsui along with the company’s major shareholders such as Indonesian billionaire Anthoni Salim’s First Pacific Group, the Ty family conglomerate GT Capital Holdings, Mitsui and a private company owned by Pangilinan.
