News reports had it that the buyout negotiations were already a done deal, with the Singaporeans virtually giving in to all demands by their Filipino partners, including the P1.4 billion being claimed by the Espiritu group in exchange for yielding majority control of the bank.
Lawyer Francis Lim, legal counsel for the Espiritu Group, said that no definitive agreement has been signed, although there has been agreement on some points.
Lim asserted that negotiations are still going on, adding that it could not be said as yet that the disputes have been settled.
"It’s not over until it’s over," Lim stressed.
He assured UOBP’s depositors and other clients that there are earnest efforts by both parties to iron out their differences and restore viability of the bank as soon as possible.
The Singaporeans, backed by their mother company, the United Overseas Bank Ltd. of Singapore, has offered to buy out the Filipino investors as part of the overall settlement.
The offer was meant to ultimately put to rest the cases lodged by the local shareholders, mainly composed of a group led by Tony Tan Caktiong of the Jollibee fastfood chain, and the Espiritu group led by John Espiritu, son of former Finance Secretary Edgardo Espiritu.
The Tan-Espiritu holdings totaling 171 million shares represented 33 percent of the UOBP assets.
The agreement also provided for the release of Tan from a previous commitment to pump in P1.6 billion to UOB. In addition, the Singaporeans will drop its petition for compulsory arbitration filed against Tan in Australia for not fulfilling his obligation under the investor agreement.
For their part, the local shareholders, along with other former officials of Westmont Bank, the progenitor of UOBP, will drop all cases they lodged against the Singaporeans.
The pact, expected to be signed soon, is designed to enhance the stability of the bank.