BSP okays sale of PBCom to Ongpin group

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given its stamp of approval to the sale of 97.28 percent of Philippine Bank of Communications (PBCom) to a group led by businessman and former Trade Minister Roberto V. Ongpin.

In a letter dated Nov. 15, the Monetary Board of the BSP has allowed the group of investors led by ISM Communications to purchase a controlling stake in the bank.

“We have been informed that the parties to the memorandum of agreement (MOA) will endeavor to transact the sale shares through the facilities of the Philippine Stock Exchange (PSE) as soon as possible,” ISM said in a disclosure to the Philippine Stock Exchange.

The accord was entered into in July by the Ongpin Group and PBCom’s three major stakeholders – the Chung, Luy and Nubla clans. The Ongpin Group was selected as the strategic third-party investor, offering P4.68 billion for approximately 97.28 percent of the bank’s outstanding capital.

After almost two years in the auction block and seven years since it received a P7.6-billion financial assistance package from the Philippine Deposit Insurance Corp. (PDIC), PBCom, a medium-sized commercial bank with its strength in the middle market, particularly the Chinese-Filipino businessman community, and middle-level corporates, finally was sold to a strategic third-party investor.

ISM is a listed telecommunications holding company formed in 2002 controlled mainly by the Ongpin Group PhilWeb Corp. and UK-based fund manager Ashmore Group Plc.

This marks the first time the group has invested in a banking institution. It has acquired majority control of Eastern Telecommunications Philippines Inc. and Acentric Gmbh, a logistics company for hotel in-room entertainment systems and services.

ISM’s board directors include Eric Recto, who is also the president of Petron Corp.; Gregorio M. Araneta III, son-in-law of former president Marcos and scion of the Araneta clan; and Walter W. Brown, who has various interests in the energy sector including Philex Mining, PetroEnergy Corp., and Monte Oro Resources and Energy Inc.