PNOC-EC to short-list 5 firms for follow-on offer

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TUESDAY, 29 MARCH 2011 18:11 PAUL ANTHONY A. ISLA / REPORTER

THE Philippine National Oil Co.-Exploration Corp. (PNOC-EC), the country’s coal, oil and gas exploration company, will be short-listing a number of financial institutions for its follow-on offering, Gemiliano Lopez Jr., the chairman and chief executive told reporters on Tuesday.

In an interview, the PNOC-EC official said they are looking at short-listing at least five financial institutions. “We haven’t short-listed anybody. Some banks have already expressed interest.

Lopez revealed that UBS, Deutsche Bank and Morgan Stanley are among the financial institutions that have expressed interest to be their financial advisor for the upcoming follow-on offer. “We are looking at coming up with the shortlist before the end of April,” he added. 

Lopez noted that the selection for financial advisor will be done through a public bidding. 

Lopez also expressed his full support and agreement with the statement of Energy Secretary Jose Rene Almendras to further study the timing and conditions for the planned follow-on offering to the public at least to 10 percent of the issued and outstanding shares of the state-owned corporation.

The sale of 10 percent to the public of the shares of PNOC-EC, a subsidiary of the Philippine National Oil Corp., is a requirement of the Philippine Stock Exchange for all publicly listed corporations to maintain a minimum 10 percent public float.  

At present, 99.79 percent of the PNOC-EC shares of stock is owned by the government, and only 0.21 percent is held by the public.

“I will be the first person to disallow the sale of the PNOC-EC shares of stock at less than its current fair market value. It is my mandate to protect the interest of the government and of our people in accordance with the principles of the administration of President Aquino. I will fulfill that mandate,” Lopez said. 

Lopez said there is a global economic crisis owing to the spiraling energy prices, particularly of petroleum, due to the political and social turmoil in the Middle East and the disaster in Japan which would need more energy to recover.  

“Our people, particularly the transport sector and the commuting public, are hit hard by the almost daily increase in the cost of oil, diesel and other petroleum products,” he said. “Our people and our economy are suffering.”

Lopez said the sale of additional shares to the public would generate more local and foreign investments into PNOC-EC’s capital requirements to secure stable energy sources for the country. “The capital raised in the offering would enable us to cope with the continuing energy crisis and bring us nearer to our goal to become more self-reliant in our energy requirements,” he said.    

“But Almendras is right to ensure that we get the right price for the offering, so that we will maximize the results of our investments and activities in the energy field,” Lopez said.