GSIS increases stake in MPIC

MANILA, Philippines — State pension fund Government Service Insurance System (GSIS) has increased its stake in Pangilinan-led Metro Pacific Investments Corp. (MPIC), the tollways and infrastructure conglomerate, to 12 percent from three percent previously.

GSIS acquired 2.5 billion MPIC shares from Aug. 23 to Sept. 4, bringing its stake in the company to 3.4 billion common shares or approximately 11.98 percent of the total outstanding common shares of MPIC.

It is still unclear how this will affect MPIC’s tender offer and delisting process.

Some traders said this reduces MPIC’s chance of being delisted from the market as majority shareholders would not be able to attain the target to acquire 95 percent of the company’s outstanding shares.

On the other hand, April Lee Tan, head of research of COL Financial, said that since GSIS now owns 12 percent, it may not be counted in the public float based on the PSE’s proposed amendments to the delisting rules, which means the tender offer might proceed.

On Tuesday, MPIC chairperson Manuel V. Pangilinan expressed hope that majority shareholders, himself included, will be able to buy back enough shares so it can successfully delist from the market.

“We are hopeful that the amount of shares will translate to qualification for delisting, but we told the government we will not stop there because we will be listing our subsidiaries to take over the privatization of MPIC. First will be tollways, that will be a significant listing,” Pangilinan said.

Last month, MPIC shareholders approved the voluntary delisting of the company’s shares from the PSE. The delisting of the shares has been scheduled on Oct. 9, said Stanley Yang, representative of MPIC’s majority shareholders.

Majority shareholders of MPIC offered to acquire the stake of minority shareholders at P5.20 per share, representing a premium of 37 percent over the one-year volume weighted average price (VWAP) of P3.80 per share and a premium of 39 percent over the three-year VWAP of P3.75 per share.

The majority shareholders are First Pacific Company Limited through its affiliate, Metro Pacific Holdings Inc., GT Capital Holdings Inc., a consortium including Mitsui & Co., Ltd. and MIG Holdings Inc.

Under the tender offer, the bidders will spend up to P54.8 billion or $986 million for the remaining shares held by the minority shareholders of MPIC.

To comply with the voluntary delisting requirements of the PSE, the common shares to be tendered in the tender offer, together with the common shares owned by the bidders and the qualifying common shares of MPIC’s directors, should constitute at least 95 percent of the total outstanding common capital stock of MPIC.