BSP asked to bare UOBP buyout deal

A group of minority stockholders in United Overseas Bank of the Philippines (UOBP) has asked the Bangko Sentral ng Pilipinas (BSP) to compel the bank officers to disclose the reported buyout settlement entered into by the Singaporean United Overseas Bank Ltd. (UOBL) with the group of former Finance Secretary Edgardo Espiritu.

Farmix group lawyer Roan Libarios said the BSP should investigate the UOBP officers in their effort to hide the deal which involves 33 percent of local shareholders in UOBP’s voting equity. He said that the deal was done in "mysterious secrecy and amounts to conducting business in an unsound manner."

"We do not want to start another scandal that might affect UOBP and the banking industry which is just recovering from a series of scandals but we also have to make sure that the Farmix group’s interest as minority stockholders is protected," he said.

The Farmix group, which was part of the former controlling shareholders of Westmont Bank which was taken over by the UOBP, complained to the BSP that it has been excluded from the final buyout settlement when UOBL took over Westmont Bank. Westmont Bank is now UOBP.

In the administrative complaint filed with the BSP, the Farmix group said its "exclusion from the buyout deal affects transparency, legitimacy and the validity of the entire buyout deal and the moral fitness of the bank officers and directors."

"The officers and directors of UOBP, including the four nominees of the Espiritu group in the 10-man board, deserves to be faulted and held liable for unjustly excluding the stockholders belonging to the Farmix group in the buyout settlement over the 33-percent stake in UOBP and for refusing to disclose details thereof despite repeated demands," the complaint said.

"The Farmix group may have disassociated itself from the Espiritu group (because of the Wincorp scandal) but they have not surrendered their rights as part of the former controlling shareholders of Westmont Bank," the complaint said.

The Farmix group is also asking the BSP through the Monetary Board to "withhold the approval of the purported transaction involving the acquisition by UOBL of 100 percent equity share in UOBP, particularly the shares registered in the name of Tony Tan Caktiong and William Tan Untiong representing 33 percent of UOBP’s voting equity."

The Farmix group said that the UOBP "in a conduct that reflects lack of prudence" went ahead and "forged a preemptive settlement deal with the Espiritu Group, without the benefit of due process to the members of the Farmix Group, who have legitimate claims over portions of the 33-percent equity stake subject."

The Farmix group said that its stake in UOBP is not limited to its 258 nominal shares but should include portions of the shares in UOBP subscribed in the name of Jollibee Corp. chairman Tony Tan Caktiong and his brother William Tan Untiong.