PENSION FUND Government Service Insurance System (GSIS) has once again failed to dispose its majority stake in GSIS Family Bank after interested buyers were unable to comply with the agency’s bid requirements.
GSIS’ Investment Bids and Awards Committee (IBAC) declared the failure of the new round of negotiated sale for its thrift banking arm in Advisory No. 03-2015 dated Oct. 12 posted on its Web site.
“The Committee declared the failure of negotiated sale of all GSIS shares in GSIS Family Bank since no party fully complied with the requirements, as published on September 11, 2015,” the statement signed by GSIS’ IBAC Chairperson Severina L. Resurrection said.
This is the third time this year that the GSIS put its 99.5% stake in its thrift banking arm for sale and failed to clinch a deal.
GSIS had set the deadline for the submission of documentary requirements and financial offers for the latest round of negotiated sale last Oct. 5.
In its invitation to interested parties last September, GSIS sought more detailed plans on bids for its banking unit.
Interested bidders were required to submit a “detailed action plan with timelines to rehabilitate the bank,” GSIS said.
They also had to hand over projected monthly financial statements for the first 12 months of operations, together with assumptions.
The floor price for the stake on sale remained unchanged at P501 million.
The negotiated sale was also subject to the condition that the remaining 0.5% of GSIS Family Bank belonging to private stockholders, represented by the heirs of former Cavite Rep. Renato P. Dragon (2nd district), will also be sold to the same buyer through a separate transaction.
In July, after the first round of its negotiated sale for GSIS Family Bank failed and during the second bidding process, GSIS President and General Manager Robert G. Vergara said the agency may have to consult its advisers should the its new attempt fall through. Still, it again put up the thrift bank for sale last month after the second round of bidding failed as well.
In the first round declared a failure in June, private equity company Altus Capital Partners Inc. submitted a P501-million offer for the government’s majority shares in the bank. During the second sale round deemed a failure last month, GSIS accepted the P502-million offer of Phindep Development Corp., a real estate firm based in Kawit, Cavite, the lone offeror to secure the consent from the Dragon family.
GSIS Family Bank was put back on the auction block in April after the pension fund cleared a legal stumbling block from a Makati Regional Trial Court.
The Makati court placed a restraining order against the bank’s sale based on a complaint by Mr. Dragon who claimed GSIS failed to rehabilitate the thrift bank.
Mr. Dragon has a stake in the bank through Royal Savings Bank which he had owned. GSIS Family Bank was the result of several mergers, including that of Royal Savings Bank and ComSavings Bank. -- Imee Charlee C. Delavin
source: Businessworld
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