Japanese trader aquires Unitrust

Japanese businessman Genta Ogami has acquired Unitrust Development Bank in a bid to expand his presence in the country.

Banking sources said Ogami’s company, G. Universal Co. Ltd., led the acquisition of Unitrust, a thrift bank owned by former housing czar Jose Yulo Jr. and other businessmen associated with deposed President Joseph Estrada.

Sources said the Ogami group acquired 100 percent of the bank, led by G. Universal which now owns 20 percent. Another 20 percent was acquired by Nuvaniti Saiken Koishu Co. Ltd. and three individuals identified as Leopoldo Valcarsel, Pedro Montanez and Francis Yuseco who acquired 20 percent each.

Before the acquisition, Unitrust was owned by Yulo together with Emigdio Tanjuatco, Jose Tanjuatco, Rufino Tan, the Group Management Corp. Insurance of the Philippine Islands, Agapito Thelmo, Benthel Development and Private Holdings Management Corp.

Unitrust’s change of ownership, will have to be approved by the Monetary Board (MB) since under the law, a 100-percent change in the ownership of any bank requires clearance from monetary officials. The Bangko Sentral ng Pilipinas (BSP) also has the authority to review and reject the new board of directors of the bank as well as the transfer of ownership itself. Sources said the BSP only receive notice from Unitrust informing it of the transfer of ownership and officials have directed the bank to disclose the details of the transaction as well as the acquiring group.

The Ogami group will have to infuse fresh capital so Unitrust can meet the P325-million minimum capital requirement for thrift banks. At present, the bank is capitalized at P200 million with a total resource base of P755 million and a network of 13 branches in Metro Manila.

Unitrust has begun expanding its manpower base, placing an ad in major newspaper outlining its thrust to "acquire businesses that do not pay the right amount of taxes" and converting them into "good businesses honestly paying taxes and serve the mission of saving the world."

Unitrust also said it plans to acquire businesses that "enslave the Philippines and its people" as well as those "polluting the air, land, rivers and oceans."

Ogami also owns G. Cosmos Phils., an advertising firm that was shut down by the SEC for illegal sale of investment contracts. He also owns G. Films, a movie company that produced one film that starred Ogami himself and starlet Joyce Jimenez.

SEC has not lifted its cease and desist order against G. Cosmos after finding it in violation of a provision under the Securities Regulation Code involving the sale of unregistered investment contracts.

Under G. Cosmos’ so-called G. System, the company collected money for advertising from the average consumer for its mail order sales business. The money collected was then used to conduct mail order sales in Japan through newspaper, television or magazine ads and the profits were paid directly to the people who have paid for the advertising cost.

After four months of making the entry, an individual who paid the advertising cost of a chosen product then received profit on a designated date every month. The company said the rate of profit offered was 30 percent of the total sales of the product.

The SEC said the sale of these advertising contracts were illegal unless they were formally registered with the SEC which defined investment contracts as any transaction or scheme wherein a person invests money in a common enterprise and was led to expect profits from the efforts of others.