THE group of businessman Manuel V. Pangilinan completed on Friday the acquisition of an additional 5.8 percent stake in Philex Mining Corp., consummating the agreement with Government Service Insurance System (GSIS) sealed early last year.

Spokespersons for First Pacific Co. Ltd. (FPCL), a Hong Kong-based conglomerate, and GSIS confirmed the transaction on Friday. The shares were crossed via a block sale on the same day, the Philippine Stock Exchange said in a memorandum.  

The move further bolsters the First Pacific Group’s position as the single-biggest shareholder in Philex, the country’s largest gold producer.  

First Pacific, though Philippine affiliate Two Rivers Pacific Holdings Corp., struck the deal to buy  the GSIS shares in January 21, 2010. The parties had until January 28, 2013 to transfer the shares pending certain requirements.

Two Rivers acquired the shares at the agreed price of P21 each, at that time a 42-percent premium, valuing the entire transaction at P6.02 billion.

Philex shares closed up 1.87 percent to P24.5 each on Friday, giving it a market value of P120.76 billion.

“We are using the proceeds for our regular investments in the stock market and fixed-income [instruments],” Benedicto Jose Arcinas, GSIS executive vice president for finance, said in a phone interview.

First Pacific and Two Rivers own a combined 46-percent stake in Philex.

The second-biggest shareholder is pension fund Social Security System which owns 21.5 percent of the miner as of last month.

First Pacific started acquiring Philex shares in 2008 when it bought a 20-percent stake. It also purchased a 9.2-percent interest from former Trade Minister and businessman Roberto V. Ongpin and state-led Development Bank of the Philippines in 2009, also at P21 per share. Aspects of that transaction are currently being investigated by Philippine lawmakers.

Pangilinan has consistently stated that mining would be a major segment in First Pacific’s Philippine investment strategy.

Philex reported last week that core net income in the nine months through September rose 72 percent to P3.98 billion on higher gold prices and improved production. Pangilinan said full-year core profits could hit P5 billion, up by a fifth from 2010.

(Miguel R. Camus)