CLSA is an investment bank based in Hong Kong and has existing tie-ups with 65 equity firms all over the world. It is a partner of Credit Lyonnais, a well-known research firm.
PNOC-EC privatization committee chairman Nelson B. Bayot, said CLSA had the highest score in a bidding and selection process involving the technical aspect of the bids that were submitted.
"The next step is to evaluate their financial proposal," Bayot said, noting that if CLSA fails to meet the financial criterion, the privatization committee will consider the offers of the other bidders.
He said the privatization committee’s review of the technical proposal of CLSA will still be subject to approval by the PNOC board.
"There is no assurance at this time that CLSA will be chosen as financial adviser. If negotiation on CLSA’s financial proposal fails, there is a possibility to choose the next ranking firm in the technical proposal," he said although he declined to identify the firm.
Earlier, the PNOC-EC announced that they have pre-qualified six firms, namely ING Bank, CLSA, SEA Consultant, Lazzard, ATR Kim-Eng and SGV. According to Bayot, the financial proposal of the contending firms have not been opened pending the results of the negotiations with CLSA.
"Once the privatization committee is satisfied with the negotiations (with CLSA), it will present its recommendation to the PNOC-EC and PNOC boards for their respective approvals," Bayot said.
There are at least three options being eyed for the privatization of PNOC-EC which is expected to commence early next year. The first option is to re-list the shares of EC in the local stock market. Less than two percent of the company’s shares is listed in the stock exchange in 1976 but is not actively being traded. The second option is for EC to list its 10-percent stake in the $4.5-billion Malampaya Deep-Water-to-Gas power project. The third option is a combination of the two options.