GSIS Family Bank up for sale
MANILA, Philippines – State-pension fund Government Service Insurance System (GSIS) will soon sell its bank, GSIS Family Bank, possibly within the first half of the year.
This comes after a court lifted an injunction order to stop the sale.
GSIS Family Bank, formerly owned by the Dragon Family in Cavite, was first established as a private bank more than 40 years ago.
GSIS took possession of the bank in 1986.
Minority shareholders filed a case in the court to put the sale on hold.
"Sometime in the next couple of days we might be publishing invitations to bid," Robert Vergara, GSIS president and general manager, said.
Vergara added that they are looking to put the bank in the solid hands of an investor that really wants to be a participative player in local banking.
"We need to do it within 3 months, so that’s just before the first half of the year ends," Vergara added.
Attractive target
Vergara said they requested the Development Bank of the Philippines to advise GSIS on the sale.
DBP valuated the bank from P520 ($11.79 million) to P670 million ($15.20 million) as of December 2014.
The Bangko Sentral ng Pilipinas (BSP) also reinstated the incentives it previously granted to the bank.
"The BSP, which has given us incentives in the past to facilitate sale, have reinstated the incentives. The bank is valuable to anyone who is interested to enter the banking industry," Vergara said.
With the reinstatement of the incentives, the buyer can open additional branches, plus relocate several of the bank’s existing 22 branches anywhere in the Philippines, including restricted areas.
From a mid-sized bank, it can also be converted into a commercial bank with authorization to engage in expanded foreign currency deposit unit and trust and quasi-banking functions. It can also continue to accept government deposits from GSIS and the municipalities of Cavite, unless BSP revokes such authorities. – Rappler.com
US$1 = P44.09
