Gov’t to speed up sale of RPN-9, three other assets

The government is fasttracking the disposition of four prime assets, three of which through negotiated sale due to their prior record of two failed auctions.

The Presidential Management Office (PMO) revealed yesterday that the four state assets – the Philippine Postal Corp., broadcast network RPN-9, the Philippine Al Amanah Islamic Investment Bank and the Makati property formerly occupied by the International School – have been put on the priority list as the government is set to tap financial advisers to prepare for the assets’ valuation and eventual sale.

PMO chairman Jose Bengson said they had already pre-qualified seven prospective financial advisors for the negotiated sale of RPN-9. In this list are BPI Capital, CLSA Exchange Capital, Ernst & Young, KPMG Laya Mananghaya, PCI Capital, PriceWaterhouseCooper, and Punongbayan, Araullo and Associates.

"Within the next two to three weeks we should be able to make a selection and RPN should be ready for negotiated sale shortly thereafter," Bengson said.

He said the government, however, has not made a decision yet on how to sell its RPN-9 holdings, whether to sell just its assets, shares of stocks or the franchise.

"I think the most valuable RPN-9 asset is the franchise," Bengson said. "But nothing is final and there is significant interest in this company."

Bengson said the Al Amanah Islamic Investment Bank has also attracted foreign investors but he declined to identify the groups interested in owning the country’s only Islamic bank.

"Whoever buys the bank will have to retain its charter as an Islamic bank," he pointed out.

On the other hand, Bengson said the Makati government has agreed to expedite the rezoning of the property formerly occupied by the International School from institutional to commercial.

He said the property is still attractive to property developers who made a bid for it when it was auctioned twice in the previous years. The interested buyers included the Ayala Group, the Gokongwei Group and even the Makati City government itself.

If zoned as a commercial area prior to the sale, the property would generate more funds for the National Government since commercial lands are more expensive than institutional lands.

The three assets would all be subject to negotiated sale since public biddings have failed twice for each of the properties, Bengson said.

On the other hand, Bengson said the first auction of the Philippine Postal Corp. was also scheduled this year but he said the valuation of the company would be based on the recommendations to be made by its financial advisers.

Bengson explained that the government plans to sell only part of its holdings in the company since its charter requires the government to retain at least 45-percent equity.

Bengson said the mode of privatization could be either through an initial public offer or build-operate-transfer. He said the government could also opt to just lease the company to interested investors.