SSS willing to sell Philex Mining shares

MANILA, Philippines - The Social Security System (SSS) is open to selling its shares in Philex Mining Corp. if it receives a good offer, its top official said.

SSS president and chief executive officer Emilio de Quiros Jr. said that the agency has been receiving offers to buy SSS’ shares in the listed mining company.

“We are studying the possibility of selling. There is always a buyer,” De Quiros said.

SSS owns 22.43 percent of Philex Mining and has not unloaded its block in the mining firm. SSS’ stake represents 1,103,565,052 common shares of Philex.

Philex Mining, controlled by Hong Kong-based conglomerate First Pacific Company Ltd., was incorporated in 1955 and is listed in the Philippine Stock Exchange (PSE). The company is primarily engaged in large-scale exploration, development and utilization of mineral resources in the Philippines.

In December 2009, First Pacific bought the 9.2-percent Philex stake of the Ongpin Group, the Development Bank of the Philippines and Walter Brown. It also bought the 5.9-percent stake of the Government Service Insurance System (GSIS) in January 2010.

De Quiros, who has extensive experience as a banker before he was appointed as SSS chief, said that while there are offers to buy the pension fund’s stake in Philex, these are carefully being studied because it is among the lucrative investments of SSS.

In 2009, the SSS under then president and chief executive officer Romulo Neri considered selling its sizable shares in Philex.

At that time, at least two camps signified interest in acquiring SSS’ stake in the mining firm. These include Ramon Ang of the San Miguel group and the group of businessman Manuel V. Pangilinan.

De Quiros said that the agency is hoping to earn some P20 billion from investments this year, higher than the projected P16 billion for 2011.

From January to May, SSS’ income from its investments in equities and the fixed-income market has reached P11 billion.

De Quiros said the agency is prepared to invest as much as P20 billion this year in the local equities market and even in the government’s public-private partnership program for infrastructure projects