Gov’t willing to accept lower price for stake in Philphos

Government is willing to accept as much as 20 percent less than the P4.2- billion indicative bid price for its interest in Philippine Phosphate Fertilizers, Inc. (Philphos) when the company is privatized this month.

During the pre-bidding conference held early this week, prospective bidders expressed concern that the P4.2- billion indicative price might prove to be unattractive considering the worldwide slump in the fertilizer industry and the general condition of the Philippine economy.

Although three interested groups showed up during the pre-conference, APT chief executive trustee Renato Valdecantos expressed concern that both local and foreign investors might find the expected bid price unattractive.

According to Valdecantos, however, the indicative price was recommended by the APT and approved by the Committee on privatization.

"Notwithstanding the prevailing conditions in the Philippine economy as well as the worldwide fertilizer industry, government still hope to achieve the indicative price," he said.

According to Valdecantos, any bid below the indicative price of up to 20 percent, or P3.4 billion, might still be acceptable to the government, upon recommendation and approval of the COP.

Present during the conference were representatives from Nissho Iwai, a Japanese diversified trading giant, Pasar Holdings and a group representing the interests of businessman Jose Ch. Alvarez.

In his pre-bidding conference report, Valdecantos said government is selling 405,000 shares representing 45 percent of the outstanding capital stock of Philphos or 90 percent of the total shareholding held by the National Government.

The remaining 45,000 shares are reserved for sale to small local investors.

The sale would also include receivables of up to P48.8 billion consisting of P37.4- billion receivables in the form of advances to Philphos by the government and P8.9 billion of guarantee fees being collected by the government. – Des Ferriols