Templeton asked to join in block sale of PNB shares

The government will formally request Templeton Asset Management, a foreign fund manager with a 12.9-percent stake in Philippine National Bank (PNB), to join the government in selling its stake as a block, Finance Secretary Jose T. Pardo said yesterday.

"The government will formally write Templeton to ask if it is willing to join the government and sell as a block their shares in PNB," Pardo said.

Government has secured the nod of business tycoon Lucio Tan to sell his 46-percent stake in PNB together with that of the government.

At the moment, government has a total of 76 percent comprised of the government's 30 percent and Tan's 46 percent.

If the government manages to secure Templeton's agreement to sell its 12.9-percent stake in PNB together with that of the government and Tan, the total block would increase to 88.9 percent.

This does not include the remaining four to five percent of the PNB Retirement Fund Inc. (PNBRFI).

If the PNBRFI decides to sell together with the government, the total block would increase to anywhere from 93 percent to 94 percent.

Such a big block will entice more buyers who will end up with almost full control of PNB.

Government has been working hard to convince the other shareholders to sell as a block to be able to attract more buyers and get a premium for PNB shares.

However, a floor price will still have to be set. Based on the acquisition price of Tan, the PNB shares must be sold at no less than P160 each. -- Marianne Go

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