GSIS eyes board seat in MPIC

MANILA, Philippines — The Government Service Insurance System is seeking a seat on the board of directors of Pangilinan-led Metro Pacific Investments Corp. (MPIC) even as the infrastructure conglomerate transitions to private ownership.

MPIC’s tender offer, which commenced on Aug. 9, closed yesterday with the transactions expected to be settled on Sept. 19. If MPIC’s majority shareholders are able to buy back enough shares, it will soon be delisted from the Philippine Stock Exchange (PSE).

GSIS increased its stake in MPIC to 12 percent, reflecting its confidence in the holding firm’s  growth plan. The additional investment was also in line with its thrust to invest in businesses that have high impact on the economy, sources privy to the matter told The STAR yesterday.

The majority shareholders that want to take MPIC private are First Pacific Company Ltd. (First Pacific) through its affiliate, Metro Pacific Holdings Inc., GT Capital Holdings Inc., and a consortium including Mitsui & Co., Ltd. and MIG Holdings Inc.

GSIS  acquired 2.5 billion MPIC shares from Aug. 23 to Sept. 4, raising its stake in the company to 3.4 billion common shares, equivalent to approximately 11.98 percent.  This is likely to result in the pension fund  securing one board seat in the company.

In a letter to MPIC, GSIS said that it intends to remain a shareholder of MPIC even after the completion of the voluntary delisting of the tollways and infrastructure conglomerate.

It also understands that “based on the PSE rule on minimum public ownership, any shareholder with a holding of 10 percent or greater of total issued and outstanding shares shall be considered non-public.

Staying as a shareholder of MPIC would enable GSIS to continue benefiting from MPIC’s growth initiatives, which include expanding its agriculture business, pursuing rail projects in the Philippines and participating in the government’s public-private partnership program.

AP Securities said that if the tendered shares only represent between 90 and 95 percent of public float, MPIC will be suspended for failing to meet the 10 percent public float requirement and will eventually get delisted.

“The exchange also has the option to grant an exemption and allow the company’s request for voluntary delisting,” it said.

Another scenario is that if the tendered shares represent between 80 and 90 percent of the public float, MPI will suffer the same fate as First Gen and will be kicked off the PSE Index but it will remain listed.

A last scenario is that majority shareholders have the option to reject the tendered shares, AP Securities said.

As of press time yesterday, MPIC has not made any announcement on the results of the tender offer but market sources said the company has not cancelled the offer at the close of trading.

If and when the shares get crossed on the 15th, a trading suspension should follow, brokers said.

Brokers also said most shareholders tendered their shares. MPIC’s share price closed at P4.85 yesterday, down by three percent.