Gov’t seeks financial adviser for privatization of Philpost

By KAREN L. LEMA, BusinessWorld Senior Reporter The Department of Finance (DoF) has opened the bidding process for interested financial advisers to finally jump-start the privatization of the Philippine Postal Corp. (Philpost). Interested parties were given until June 2 to submit their letters of intent and those who will be short-listed by the Privatization Management Office’s bids and awards committee will have so submit their eligibility documents on June 8 and their bid offers on June 28. The financial adviser will be tasked to guide authorities in the sale of the government shares in Philpost as well as the timing of the transaction. The government is selling up to 55% of Philpost through a new issue of shares that will be bought by a prospective investor. This will therefore result in the dilution of existing shares by the government to 45%. Finance Undersecretary Gabriel Singson Jr. said the government has yet to decide on the mode of sale, whether it is going to be a strategic sale or through an initial public offering. Philpost was established under RA 7354, or the Postal Service Act of 1992. Under its charter, the government cannot sell shares lower than par, which is P100 per share. If successful, government hopes to raise P5.5 billion from the privatization. Mr. Singson said the government aims to raise at least P500 million next year from its privatization program, but fiscal authorities were optimistic that the government could easily breach the target given the number of assets scheduled to be privatized next year. Privatization revenues are sure to go a long way in helping the government trim its deficit, which stood at P146 billion in 2005, and eventually wipe it out by 2008. Aside from Philpost, other assets to be privatized next year include RPN Channel 9, IBC Channel 13 and PNOC-Energy Development Corp. Last week, the DoF said it has accepted the offer of Century Properties to purchase the 48,832-square-meter Makati property formerly occupied by the International School at P1.432 billion, 10% higher than the government’s indicative price of P1.186 billion.