First Pac buys GSIS holdings in Philex

Hong Kong-based First Pacific Co. Ltd. has completed the acquisition of an additional 5.9 percent in gold and copper producer Philex Mining Corp. from state-pension fund Government Service Insurance System.

A total of 286.78 million Philex shares were crossed at the Philippine Stock Exchange Friday at P21 apiece. The transaction was valued at P6.02 billion.

GSIS executive vice president for finance Jose Benedicto Arcinas confirmed the sale. He said the transaction was a consummation of a previous deal reached by GSIS.

First Pacific, through affiliate Two Rivers Pacific Holdings Corp., last year signed a conditional sale agreement with GSIS over the acquisition of the pension fund’s 5.9-percent stake in Philex.

The acquisition boosted First Pacific’s interest in Philex to 46.6 percent.

Two Rivers now owns approximately 15.1 percent of Philex.

First Pacific earlier said the acquisition of the Philex shares by Two Rivers would not result in a mandatory tender offer obligation because the shares constitute less than 35 percent of the outstanding shares.

First Pacific acquired the additional Philex shares after the lapse of the 12-month period from its initial purchase, through wholly-owned subsidiary, Asia Link B.V., on Nov. 28, 2008 of approximately 20.06 percent of the common shares.

Two Rivers earlier acquired another 9.24 percent of Philex for P9.49 billion from shareholders Roberto Ongpin, Walter Brown and Development Bank of the Philippines.

State-run pension fund Social Security System also owns 21.5 percent of Philex.

Philex chairman Manuel Pangilinan on Thursday said he expects the mining company to register P5 billion in core net income this year from P4 billion last year on higher production and higher metal prices.


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