PDIC to set Export Bank price for buyers

Philippine Deposit Insurance Corp. (PDIC) on Wednesday said it is tapping an auditor to set the price for shuttered Export and Industry Bank.   The state-owned deposits insurer said the terms of reference for interested buyers of EIB, including Banco de Oro Unibank, will soon be available.   PDIC noted Banco de Oro made a formal proposal to rehabilitate Export Bank. It will study the BDO proposal in 90 days, the deposits insurer said.   “BDO has submitted a proposal to rehabilitate Export Bank with certain conditions. PDIC is reviewing the legal and economic viabilities of said proposal. Some of the conditions as proposed are not within the authority of PDIC,” the statement read.   PDIC’s immediate concern is to take stock of Export Bank’s liabilities and pay all valid and insured deposits.   The BSP’s Monetary Board late last month ordered Export Bank closed. The commercial bank admitted it no longer had enough cash to service its maturing deposits worth between P700 million and P800 million.   It was placed under PDIC receivership.   In 2010, said Export Bank it was selling its core banking business to BDO. The transaction did not push through and Banco de Oro abandoned the negotiations, saying Export Bank was laden with several issues including pending cases against the bank.   When it was padlocked by Bangko Sentral, Export Bank had more than 50,000 depositors with deposits amounting to over P15 billion. Its nationwide network consisted of 50 branches and 47 automated teller machines (ATMs).   Its subsidiaries and affiliates include EIB Securities Inc., Arthaland Corp., Valuefinance Inc., EIB Insurance Brokers Inc., Exportbank Plaza Condominium Corp., and Urbancorp Technologies Corp.   Last month, Export Bank sold its 18.4 percent stake in Arthaland for P177.7 million. EIB noted on its website it is backed by local and global stockholders led by the Yao Group, Hong Kong-based Lippo China Resources Ltd., Raiffeisen Zentralbank Österreich AG of Austria, and American Orient Capital Partners Group.   Its 2011 general information sheet with the Securities and Exchange Commission showed Export Bank’s has an authorized capital stock of P7.5 billion, of which P4.73 billion was paid-up and subscribed.   Its major shareholders include Amsterdam-based Ridderbrecht BV (11.62 percent), Lead Bancfund Holdings Inc. (10.03 percent), Apex Bancrights Holdings Inc. (10.03 percent), Extra Year Investments Ltd. (9.5 percent), Asiawide Refreshment Corp. (8.45 percent), Medco Asia Investments Corp. (7.88 percent), and Yao (6.35 percent).   Other shareholders were Yao’s Zest-O Corp. (5.92 percent), San Miguel (4.96 percent), King Mild Ltd. (2.64 percent), Conreal Holdings Ltd. (2.64 percent), and Medco Holdings (2.45 percent).   EIB is chaired by Jaime Gonzalez while Alfredo Yao serves as vice chairman together with Albert Cheok and Juan Victor Tanjuatco as president. Its board of directors includes Dionesio Carpio Jr., Douglas Chew, John Luen Wai Lee, Joseph Pineda, Rainer Silhavy, Sai Chong Cheng, Maria Constance Gonzalez, Antonio Panajon, Edna Daguisin-Reyes, Jeffrey Yao, and Roberto Atendido. —VS, GMA News