Institutional investors bought Sumitomo stake in BPI

Several institutional investors bought the Bank of the Philippine Islands shares unloaded by Japan’s Sumitomo Mitsui Banking Corp. but the Japanese bank is retaining its board seat.

Bangko Sentral ng Pilipinas Governor Rafael Buenaventura told reporters that BPI has informally advised the BSP that the shares were not bought by any single investor.

According to Buenaventura, the shares were sold at the Philippine Stock Exchange (PSE) and were bought by several institutional investors. "I was told and made to understand that they (Sumitomo) sold whatever was in excess of one board seat," Buenaventura said.

Sumitomo Mitsui, Japan’s second largest bank, held an 8.4 percent stake in BPI.

On Monday, 21.6 million BPI shares were sold at P67 per share in a negotiated cross sale handled by JP Morgan at the PSE.

Buenaventura said Sumitomo kept enough shares to remain one board seat in the country’s biggest bank.

BPI was directed to disclose the details of the sale although it was not required to seek prior consent from the BSP since the shares were not substantial enough to acquire a board seat.

"When it is a substantial transaction, even if its not equal to one seat, we would like to know who bought these shares," he said. – Des Ferriols