SSS not planning to sell stake in Equitable PCI

The Social Security System (SSS) has no plans as of now of unloading its shares in the merged Equitable PCI Bank, a ranking SSS official said yesterday.

In an interview with The STAR , SSS chief actuary and investment head Horace Templo said they consider their investment in the second biggest bank in the country as a long-term investment. He said that as of the moment there is no need for them to sell their stake in the bank. The SSS management has not discussed any plan to sell the system's exposure in the bank, he added.

However, Templo said they will study the offer to buy their share in Equitable PCI if the price is right.

Along with Government Service Insurance System (GSIS), SSS joined the consortium of Equitable Bank to buy the majority stake held by Gokongwei-Lopez Group in PCIBank.

It was revealed that there are various foreign strategic partners that have shown interest in investing Equitable PCIBank.

The merged bank's management has indicated a keen interest in selling 20 to 30 percent of the bank's shares to foreign strategic partner.

Equitable PCIBank is looking for a strategic partner to go hand-in-hand with its objective of becoming a regional player by early 2001.

Aside from Equitable PCI, SSS also has a stake in Union Bank, Urbank Bank and Security Bank.

According to Templo, there is no official stance on what the agency will do with its shares in these three banks.

"Anyway, these are publicly-listed institutions. Everything should be announced to the public," he said.

Templo explained that their exposures in these banks have been acquired through the stock market and if they decide to sell it will have to be disclosed according to the rules.

It was earlier disclosed that SSS has plans of putting up its own bank to service its members. Its charter does not prohibit it from setting up its own banking arm.

It was not certain though if SSS would also take advantage of the merging, consolidating, and/or buying and selling spree in the local banking industry.