PMO named disposition entity for Islamic Bank

The Privatization and Management Office (PMO), which took over the functions of the Asset Privatization Trust (APT), has been designated as the disposition entity for the Al-Amanah Islamic Bank of the Philippines or Islamic Bank.

The Islamic Bank, which was created by law in 1990, is the only Philippine bank which is authorized to perform banking, financing and investment operations, and to establish and participate in agricultural, commercial and industrial ventures based on the Islamic concept of banking.

The PMO is offering for sale approximately 86 percent of Islamic Bank’s total authorized capital stock, comprised of 4,542,879 unissued common "A" shares, the PMO-held 50,000 common "A" shares and 4,000,000 unissued common "C" shares.

"The minimum bid price per share has been set at P100," Victor C. Bacungan of the PMO said yesterday.

He said the minimum bid price is based on the Corporation Code which requires that the minimum bid price be set no lower than the par value of the shares.

The PMO will formally offer for sale the Islamic Bank today at the Parañaque "A" and "B" function rooms, third floor of the Makati Shangri-La Hotel, Makati City.

Acceptance of tender offers will start at 2 p.m. and opening of sealed offers will be at 3 p.m.

The APT, during its time, had held two failed biddings for the bank, the last being conducted in September last year. The minimum bid price at that time was set at P120 per share.

The Islamic Bank has never been profitable for the government to operate due to the nature of Islamic-banking which prohibits profit-making. – Marianne Go