BCDA to sell half of its 45% stake in FBDC

The Bases Conversion Development Authority (BCDA) is set to sell at least half of its 45-percent stake in the Fort Bonifacio Development Corp. (FBDC).

The FBDC is the joint venture corporation of the BCDA and the Bonifacio Land Corp. (BLC).

BLC was organized for the purpose of developing phase I of the 214 hectares of Fort Bonifacio.

BLC, which used to be controlled by the Metro Pacific Group has now been taken over by the Ayala-Greenfields consortium although the MetroPac groups still retains a minority share of about 20 percent.

BCDA president and chief executive officer Rufo Colayco said the BCDA is now inviting interested financial institutions to bid to become the financial advisor for the planned privatization.

Colayco explained that because of the entry of the Ayala-Greenfield consortium into FBDC vice the Metro-Pacific Group, "the future of the FBDC looks brighter and the BCDA would want to benefit from that rosier outlook."

"However, the BCDA’s mandate is to generate cash especially to fund the government’s military modernization program," he added.

Thus, the BCDA, Colayco acknowledged cannot act like a financial holding firm and just wait for its assets to grow.

"BCDA plans to initially sell only a 25 percent stake in FBDC, while retaining about 20 percent," Colayco said.

Colayco estimates that the BCDA could raise up to P7 million from the sale of its 25 percent stake in FBDC.

Part of the proceeds that would go directly to the BCDA, Colayco said, could be used to fund the extension of the Subic-Clark highway up to the Rosario junction in Pangasinan.

The financial advisor for the privatization is expected to help the BCDA in the valuation of the shares, determine the number of shares to be disposed of as well as determine the timing of the disposition of the shares considering the present market conditions.