GSIS to sell PNCC shares

MANILA, Philippines — State-run Government Service Insurance System (GSIS) plans to unload its shares in the Philippine National Construction Corp. (PNCC) through a public bidding.

In a text message, GSIS President and general manager Jesus Clint Aranas said the state pension fund’s move to sell its stake in PNCC is in line with its policy of disposing non-performing assets.

“We are looking to sell all non-performing assets. The proceeds shall be invested in profitable activities for the fund,” Aranas said.

Currently, the GSIS has 47.49 million shares in PNCC, equivalent to 21 percent of the company’s total equity with preferred shares included.

The state fund is offering the shares on a block-sale and cash-basis for a minimum bid price of P50 million.

The GSIS said interested parties may submit a letter of intent to the agency’s Investment Bids and Awards Committee until Oct. 12.

Prospective bidders may submit their bid proposals until Oct. 26, 11 a.m. at the GSIS Building Conference Hall. Opening of bids will immediately follow.

PNCC is a government-owned and -controlled corporation whose primary purpose is to carry on the conduct of a general contracting business with the private or public sector. Since 2002, the company has refrained from actively engaging in the construction business, and has focused more on the operation and maintenance of its tollways.

Aside from its PNCC shares, the GSIS earlier expressed its intent to sell its 781,857-square meter property in Port Area, Manila.

However, the pension fund has deferred the auction of the property as it wants to recompute the price for the lot. It was originally posted at a minimum bid price of P20 billion.