THE Government Service Insurance System (GSIS) acknowledged over the long weekend difficulty in selling its thrift unit, the GSIS Family Bank, but vowed not to stop looking for a solution finally disposing of one of its more prominent nonperforming assets.
GSIS President and General Manager Robert Vergara said they are even now looking for a practical solution and exploring various options to push through with the lender’s aborted sale.
“The last time we [tried], we found out the people who won the bid were ineligible because of the requirement of the Bangko Sentral ng Pilipinas [BSP] on nonbank owners. We’re still finding a way to get a structure that will allow us to get the private sector to buy the bank,” he told the BusinessMirror.
Regulators previously disapproved of Phindep Development Corp.’s bid on the ground that a nonbank cannot own more than 40 percent of a bank. Phindep was the sole bidder at the public sale of the GSIS thrift unit.
“It’s very hard to put a deadline for this, [bidding] right now,” Vergara said.
He also acknowledged that, with the presidential elections coming just around the corner, there may be some restrictions on its sale that could lead to further delays. The GSIS earlier set a minimum bid price for its 99.5-percent outstanding shares in the bank at P501 million.
According to Vergara, the winning offeror will enjoy incentives approved by the BSP under Monetary Board Resolution 224 dated February 13.
The incentives include the privilege to open 20 additional branches and relocating 12 of its existing 22 branches anywhere in the country (including those in so-called restricted areas) and accepting government deposits from GSIS, subject to the approval of the finance secretary.