Cirtek open to allow SSS to buy more shares

MANILA, Philippines — Cirtek Holdings Philippines Corp. is open to allowing the Social Security System (SSS) to acquire more of its shares.

In an interview last week, Cirtek vice chairman and president Roberto Juanchito Dispo said that several strategic investors are interested in Cirtek and have been investing.

 “It’s a demonstration that they believe in the business model of Cirtek, that this Filipino company is world class and can bring in a lot of value not only to the local economy but also to the global economy,” Dispo said. 

SSS commissioner Jose Gabriel La Viña has said the company wants to acquire more shares in Cirtek to take advantage of the potential growth of the listed company. 

SSS currently has about P400 million worth of Cirtek shares, which it acquired from the open market.

The pension fund is already in talks for a possible acquisition of additional shares which will enable it to have one board seat in the company. 

Cirtek chief finance officer Anthony Buyawe said that if this pushes through, it would be done through a combination of private placement and acquisition of more shares in the open market.

“It may be a combination – private placement and open market,” he said.

Dispo said Cirtek would continue to chart the direction of the company’s expansion and increase its presence in the global technology space. 

On the side, Dispo said Cirtek is also helping SSS improve its connectivity among its regional and field offices. 

SSS has more than P100 billion invested in the equities market, equivalent to about 23 percent of its investible portfolio.

It also wants to take part in the Philippine Stock Exchange’s rights offering next month.

PSE is looking to raise as much P3.16 billion through a rights offer. It plans to sell 11.5 million common shares to eligible shareholders.  

Last year, Cirtek raised $67 million in fresh capital through the sale of dollar-denominated preferred shares, which will be used to pay debt and fund strategic acquisitions. 

The tech company is currently on expansion mode with a goal to become a $1-billion company.