Ongpin group acquires PBCom; BSP OKs deal

(Updated 1:12 p.m.) The Bangko Sentral ng Pilipinas has approved Ongpin-led ISM Communications Corp.'s bid to buy troubled Philippine Bank of Communications (PBCom). In separate statements to the Philippine Stock Exchange Wednesday, PBCom and ISM said they received the BSP letter regarding the deal. In July, ISM Communications and the three major shareholders of the bank — the Chung, Luy and Nubla groups — signed an agreement covering the sale of 97.28 percent of PBCom's outstanding capital for P4.68 billion. "On 7 September 2011, the Philippine Deposit Insurance Corp. confirmed the selection of ISM, Mr. Roberto V. Ongpin and Mr. Eric O. Recto as the qualified STPI [Strategic Third Party Investor] for the bank. The MB [Monetary Board] approval completes the regulatory approvals required before the transaction may be consummated," PBCom said. ISM Communications is led by Roberto Ongpin, the former Trade minister of then strongman Ferdinand Marcos. The disposition of PBCom was a requisite under the P7.6-billion assistance given by the Philippine Deposit Insurance Corp. to the ailing bank in 2006. According to PBCom, observers have noted that the BSP’s approval of the Ongpin group’s bid to buy PBCom reaffirms the government agency’s “earlier reported position that it sees nothing irregular with the banking transactions of Ongpin with DBP." Ongpin is the subject of a Senate inquiry in connection with the P660-million loan granted by the Development Bank of the Philippines to his company Delta Ventures Resources Inc. in 2009. Together with 27 former and current DBP officials, Ongpin is also facing criminal and administrative cases before the Ombudsman regarding the issue. Sen. Sergio Osmeña on Monday said Ongpin and some bank officials may be held liable for plunder in connection with $180 million in loans the DBP and Land Bank of the Philippines gave Global Air Services, a company allegedly owned or controlled by Ongpin in 2008. — CMA/KG/VS, GMA News