SSS to pursue sale of equity in Equitable PCI Bank

The Social Security System (SSS) said yesterday it would push through with the sale of its shares in Equitable PCI Bank, pending the decision of the Department of Justice (DOJ) on whether its transaction with the Henry Sy group was allowable.

SSS president Corazon de la Paz told reporters that the pension fund was set on selling its holdings with Equitable PCI Bank.

According to De la Paz, SSS has only earned "minimal profits" from the Equitable PCI shares, mostly in the form of dividend payments.

"It’s certainly smaller than what we would have earned if the funds were invested elsewhere," she said.

Equitable PCI Bank expects a 20- percent growth in net profit this year from P1.23 billion in 2003, bank president and chief executive officer Rene Buenaventura said.

"Given what we see in terms of strategies we set and how we expect the economic environment to turn out, we are looking at least 20 percent growth this year," he said during yesterday’s annual stockholders’ meeting.

"From what we had seen in the first quarter, it makes us even more confident that we can meet our target," he said.

De la Paz said the SSS was only waiting for the DOJ to make its decision before it would proceed exploring its options whether with Sy or the other interested parties.

At least two other major investment groups have expressed interest in buying the shares from SSS.

Documents obtained by reporters showed that the Singapore-based Asian Opportunities Fund and CLSA Equity Capital Markets Ltd. of Hongkong have expressed serious interest in SSS’ 187.84 million shares in Equitable PCI Bank.

Meanwhile, 15 names were elected to Equitable PCI Banks’ 2004 board of directors during its annual stockholders’ meeting yesterday.

The government pension fund controls more than 25 percent of the outstanding shares equivalent to five board seats.

Aside from De la Paz, Ma. Luz Generoso and Ramon Jabar were renamed in the bank’s board representing the SSS holdings. Still to be renamed is Miguel Roca who reportedly was only accommodated as a member of the advisory board along with former Trade Secretary Cesar Bautista and Juan Santos.

Jabar and Roca were rejected by the Equitable Bank nominating committee due to a technicality. Their shares were still in the name of the securities firm that acquired their holdings otherwise known as "street name" before Jan. 15 2004, the cut-off date.

That was the same case of Rafael Alunan, Josefina Tan, and Violeta Luym, all said to be nominees of the SM Group.

Another rejected nominee was Teresita Sy Coson who was classified as "adversarial" being the chairman of the Banco de Oro Universal Bank, which has been trying to get a majority control of Equitable.

Also reelected to the board were Antonio Go, Ferdinand Martin Romualdez, John Go, Anthony Comway, Fulgencio Factoran, Genevieve Go, Peter Go, Teodoro Regino, and Roberto Romulo. Lawyer Nilo Divina was retained as corporate secretary. Cezar Bautista and Reynaldo Palmiery were also elected.

The term of Teresita Alegre (SSS) and Juan C. Tan (independent) had expired. – With Ted Torres