PNOC to divest majority stake in real esate subsidiary

The Philippine National Oil Co. (PNOC) said yesterday it plans to divest of its controlling interest in its P1.3-billion real estate subsidiary PNOC Development Management Corp. (PDMC).

PDMC president Cayetano Paderanga said they could sell the shares to an interested strategic investor. PDMC handles all the industrial real estate development and management activities of PNOC. It currently manages a 123- hectare property in Rosario, Cavite.

Paderanga said PDMC has already formed a committee to oversee the disposal of more than half of PDMC’s equity to an investor.

"We are looking for a strategic partner. PNOC will sell more than half of its shares in PDMC. The PNOC board has already appointed a privatization committee headed by PNOC president Thelmo Cunanan," Paderanga said.

Based on the privatization blueprint, PNOC will sell 10 percent of its 98 percent stake in PDMC to the public, 53 percent to a strategic investor and maintain the remaining 35 percent in the real estate development firm.

"We are selling only the shares and not the property to the strategic investors. The investors must be aware of the strategic value of PNOC and PDMC. The rationale here is to give PDMC the best value," Paderanga said.

According to Paderanga, PNOC is now looking for financial advisors that will help them in the privatization.

"The privatization committee will look into the background of the prospective investors. They should give value to PDMC. The invitation for a financial advisor has already been published. We are confident that whoever will be our financial advisor will give PNOC the best value for the shares involved. Now is the right time to sell because PDMC is very attractive," he said.

PDMC finance and administrative manager Florendo Garcia said the firm made P3 million in 2001, P7 million in 2002 and is projected to rake in P28 million in net income at the end of 2003.