Gov't bidding out 10.2% stake in ETPI on Nov. 20

The Philippine government will be bidding out its 10.2-percent stake in Eastern Telecommunications Philippines Inc., the country’s oldest phone company, next week. The Privatization and Management Office on Monday announced that it will be selling the 2.652 million Class A shares in ETPI, through a public bidding scheduled on November 20. The shares to be sold were surrendered by former Ambassador Roberto Benedicto to the Presidential Commission on Good Government, as part of a compromise agreement with the PCGG. Through the agreement, Benedicto surrendered 51 percent of his equity in ETPI or 2.652 million shares. The Supreme Court in July last year denied the petition of the heirs of the late President Ferdinand Marcos to nullify a Sandiganbayan resolution dismissing the recovery case they had filed against Benedicto due to their alleged failure and refusal to pay the correct amount of docket fees. In 1998, the heirs of the late strongman filed a complaint for declaration of ownership, accounting, and damages against the PCGG. But the Marcos heirs failed to pay additional docket fees computed by the court. The PMO said the government may enter into a negotiated sale in case of a bidding failure. “In the event that the public bidding becomes a failure, the PMO reserves the right to accept proposals for the subject asset," it said in the announcement. The PMO did not give any details as to how much it is expecting from the asset sale next week. However, ISM Communications Corp. of former Trade Minister Roberto Ongpin spent P100 million to purchase 100 million class A shares of ETPI from Smart Communications Corp. last October 23. ISM Communications now owns 67.5 percent of ETPI. The government expects to raise at least P70 billion this year from the sale of big-ticket assets. It has raised P42.3 billion in the first nine months from the sale of its 46 percent stake in Philippine Telecommunication Investments Corp. (P25.2 billion), its 20 percent interest in Philippine National Oil Co. – Energy Development Corp (P16.6 billion), the 60-hectare old Iloilo airport (P1.2 billion), and the remaining 4.6 percent stake in Philippine National Bank (P998 million). The proceeds from privatization will be used to augment the country's budget deficit. - GMANews.TV