DBP receives offer for 2% stake in PAL

The Development Bank of the Philippines (DBP) said it has received an offer to sell its two percent holding in flag carrier Philippine Airlines (PAL).

In a press conference, DBP president and chief executive officer Reynaldo G. David said they received an offer to dispose the shares "at any time at a certain price."

The offer, he said, was made even before Baguio Gold Holdings Corp. publicly announced it will buy out the holdings of the six firms controlling PAL.

David, however, refused to disclose the offer price. "I’m not at liberty (to divulge) because it is very confidential," he explained.

But when asked if the bank will sell its stake, he said there is always an offer but he prefers to "ride the good wind."

"PAL is profitable. I always believe that if you’ve been at bad times why get out of it now that the good times are in? You’ve been at the bad so you ride with the good all the way," he said further.

Earlier, the Lucio Tan-controlled Baguio Gold Holdings Corp. bought out the shareholdings of Pol Holdings Inc., Cube Factor Holdings Inc., Ascot Holdings, Inc., Sierra Holdings and Equities Inc., Network Holdings and Equities Inc., and Maxell Holdings Corp.

Baguio Gold and PAL president Jaime J. Bautista said buying the six holding companies, which together control 81.57 percent of PAL, forms part of the Tan group’s corporate restructuring.

The move of Baguio Gold to purchase the holding companies constitutes a backdoor listing for the airline.

Bautista said going public remains an option for PAL in the future. The airline, which is still under a debt restructuring program, would wait until 2008 to record three years of continued profitability, a prerequisite to listing on the local bourse.