The Government Service Insurance System (GSIS), the state pension fund, said it is no longer interested in acquiring Philamlife because the insurance company refuses to allow prospective buyers to conduct due diligence unless it makes an indicative offer.
“They’re asking for the moon,” GSIS president and general manager Winston Garcia said yesterday.
Garcia said Philamlife is asking all of its interested buyers including GSIS to make an indicative offer without opening its books to them.
“But how can we make an offer without a due diligence?” Garcia noted.
Last year, shortly after the American International Group (AIG) announced that it is selling its Philippine assets, GSIS said it could acquire as much as 49 percent in Philamlife. AIG said that putting Philamlife on the sale block would help it repay $85 billion in debt to the US government.
Garcia had said that acquiring AIG’s assets would complement the pension fund’s insurance business. He noted that Philamlife is very strong in the life insurance market. Acquiring it, he added, would make GSIS a stronger insurance agency.
Philamlife, for its part, has said that nearly 10 local and foreign groups including the Yuchengco family have expressed interest in acquiring the company.
The Ayala Group, the country’s biggest conglomerate has also signified interest in acquiring Philamlife.
Philamlife is the country’s largest insurance company, offering healthcare insurance, preneed plans, asset management and other services.
Last year, Philamlife’s parent firm AIG declared bankruptcy while US investment banks Lehman Brothers and Merrill Lynch have gone bankrupt. These developments reverberated beyond American shores and have sent jitters to investors across the globe.
AIG has yet to make an official announcement on the interested buyers of its Philippine assets and when it would be able to make a decision on the matter.