Six groups vie for stake in Equitable

Equitable PCI Bank is reviewing six offers from local and foreign financial institutions interested in acquiring or merging with the bank, a highly placed source from the Bangko Sentral ng Pilipinas (BSP) said yesterday.

The source, who requested anonymity, said the Rizal Commercial Banking Corp. (RCBC), Metropolitan Bank and Trust Co. (Metrobank) and two unidentified local banks have tendered firm proposals while two foreign firms, US-based Newbridge Capital and a Taiwanese group, the Fubon Group, have also firmed up their proposals to merge or acquire Equitable PCI Bank.

The source said the Equitable PCI Bank board has created a five-man committee to review the recommendations presented by its foreign consultants regarding mergers and acquisition proposals by local and foreign banks.

Winston Garcia, chairman of the Government Service Insurance System (GSIS), said there is no decision yet on whether to merge or take in a strategic investor. "They will assess all the details and information presented by the consultants," he said.

The consultants hired by Equitable PCI Bank are JP Morgan and ING Barings Inc. JP Morgan was tasked to review the bids of local banks while ING Barings will review the proposals of the foreign financial institutions.

Garcia said the GSIS is willing to sell its 12-percent stake in the bank "if the price is right, or at a premium over cost."

The Social Security System (SSS) is also willing to unload its 23-percent stake in the bank for the same reason.

However, SSS president and chief executive officer Vitaliano Nañagas did not reveal at what cost or price they are willing to sell.

"As long as it will be beneficial to the government, we are willing sell," he said.

Equitable PCI Bank, the country’s third largest bank, has a book value of close to $1 billion.

George Go owns a 34-percent direct stake and another five to 10 percent indirect stake in Equitable PCI Bank while his strategic partners, GSIS and SSS, own 12 percent and 23 percent, respectively.