The Philippine National Oil Co. (PNOC) will pursue the sale of its 40 percent stake in geothermal power unit PNOC-Energy Development Corp. (PNOC-EDC) within the year, a top company official said.
PNOC president Pedro Aquino Jr. told reporters yesterday that the working target to raise additional revenues of about P36 billion from the privatization scheme would still be within the last quarter of 2007.
But he admitted that they may likely give time for new Energy Secretary Angelo Reyes to familiarize with the situation before they could proceed with the proposed sale.
“September to October is definitely too tight,” he said. “But the timetable would still be within this year.”
Aquino said there is an “appetite” for PNOC-EDC shares which should be taken advantage of given the good stock market performance.
“There are a number of investors that have already expressed interest to bid for the 40-percent stake of PNOC. Most of these are local investors,” he said.
Aquino said there was already a mandate from Finance Secretary Margarito Teves to sell the remaining 40 percent stake of PNOC in its geothermal subsidiary.
According to Aquino, as part of the preparation for the sale, PNOC will hire a financial advisor or underwriter.
“Our mandate from CLSA is for the sale of 60 percent and only up to Sept. 16 this year. But CLSA could still bid. It is open for everybody,” he said.
The PNOC executive said they hope to discuss in their next board meeting this August the selection of a financial advisor.
He said they also have to determine what privatization mode to use for the 40 percent sale.
“It depends on the recommendation of the financial advisor whether we sell this as an entire block or break this up into an additional IPO (initial public offering). It depends on what the recommendation of the financial adviser will be,” he said.
The privatization of the geothermal arm of PNOC is part of the National Government’s efforts to encourage private participation in the energy sector.
The Department of Energy (DOE) said it remains the government’s privatization model because of its efficient and timely execution and its mutually beneficial outcome for government, the company and its employees.