UOB gives court copy of contract to help settle Farmix-Espiritu row

United Overseas Bank of the Philippines has submitted to a Manila court a copy of its settlement agreement with the group of former Finance Secretary Edgardo Espiritu as requested by the Farmix Fertilizer group.

The bank said this should help the Farmix and Espiritu groups settle their differences on how much Farmix is entitled to from the amount the Espiritu group got from UOB for selling out of the bank.

Farmix used to be part of the Espiritu group and had internal arrangements on sharings as minority partners of UOB of Singapore.

"UOB bought a specific number of shares for a specific amount and settled all other outstanding issues with the Espiritu group. The dispute is between the former partners on how much Farmix should get from what we paid," the bank said.

The Espiritu group has agreed to shoulder an excess amount in the event the courts find that the Farmix Group is entitled to more than what has been set aside for them.

Chua Teng Hui, UOB Philippines president, also said after a deposition-taking held last Tuesday that the bank is more focused on its operations now that it has bought out the Espiritu group.

He said that except for this minor legal issue, the bank is concentrating on further strengthening its local presence as part of UOB’s overall strategy to be a major regional bank.

He added that he would like to see the two groups settle their differences soon, and said the bank would continue helping them to the extent allowed by law and its agreement with the Espiritu group.