Equitable eyes P10 B from sale of 35% stake

Equitable PCI Bank said yesterday it expects to raise between P5 billion to P10 billion from the sale of its not more than 35-percent equity stake to a strategic investor.

In a disclosure to the Philippine Stock Exchange, Equitable PCI Bank also said it prefers to pursue the equity infusion alternative by way of sale of primary shares over that of a merger proposal.

The deadline in bidding for a substantial stake in Equitable PCI Bank lapsed last Monday with four groups submitting their respective offers.

The four groups are led by JG Summit Holdings of business tycoon John Gokongwei; a Malaysian consortium led by Ricardo Leong of the Hong Leong group; the Fubon group of Taiwan; and the US-based Venture Firm Newbridge Capital Inc.

Several speculations on the amount of bids offered have surfaced, with JG Summit reportedly even willing to raise its ante above P10 billion although the company has denied this, saying it is still inappropriate and premature to disclose details due to the confidential and non-binding nature of the bidding process.

The sale of 35 percent of the outstanding capital stock of Equitable PCI Bank would bring in additional cash to the bank which since late last year has struggled to get rid of the negative public perception as the conduit bank for the alleged money laundering activities of deposed President Estrada.

Equitable’s sale of a strategic holding would follow the sale last year of PCI Savings Bank – a unit absorbed when it acquired then PCI Bank in 1999 – to HSBC.

Last year, Equitable posted a net income of P1.05 billion from its operations.