SSS seeks best offer for Philex stake

MANILA, Philippines - The Social Security System (SSS), the state-owned pension fund for private sector employees, is willing to sell its much coveted stake in Philex Mining Corp. but is waiting for the best offer for its shares in the mining firm, its top official yesterday said.

SSS president and chief executive officer Romulo Neri said the agency is now in informal talks with “different parties” but no single entity has made a serious offer just yet. “We’re waiting for the best offer,” Neri said yesterday.

Last week, Hong Kong conglomerate First Pacific Co. increased its shareholding in Philex to 40.7 percent as it purchased an additional 9.2 percent in the mining firm from the Ongpin Group. With the acquisition, First Pacific managing director and Philippine Long Distance Telephone Co. (PLDT) chairman Manuel Pangilinan had taken over as chief executive officer in addition to being the chairman of the company.

The acquisition also resulted in the Ongpin Group’s exit from the company. The group is led by Former Trade Secretary Roberto Ongpin and businessman Walter Brown.

First Pacific currently has a 31.5-percent economic interest in Philex while state-owned pension fund SSS holds a 22-percent stake.

Neri said that if there is a tender offer from First Pacific for the other shares in Philex, SSS might consider selling its stake.

“If there is a tender offer and the price is attractive, we will consider it,” Neri said.

However, in a disclosure to the Philippine Stock Exchange last week, Philex said that First Pacific was not required to make a takeover offer for the mining firm.

“We are of the opinion that no tender offer is triggered under the rules,” Philex said in a statement.

Investors who acquire at least 35 percent of a company within a period of one year are required to make an offer for the remaining shares under the Securities Regulation Code.

A sale of SSS’ stake in Philex, if it does happen, may take place next year, the SSS chief said.

Neri said that what’s important is for SSS to be able to earn from the investments it makes so that it would be able to boost its income.

Philex stocks have risen more than three-fold since the start of the year.

From only P5.85 in January, the stock has shot up to as much as P20 on speculations it was subject of a bidding war between Pangilinan and Ramon S. Ang of San Miguel Corp.

Yesterday, however, Philex closed at P15.75 per share from P16 per share on Friday.