PNOC-EDC to sell 40% of its shares via IPO
The Philippine Star
05/29/2006
The board of the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) has approved the planned sale of the company’s 30 to 40 percent shares through an initial public offering (IPO) this September.
PNOC president Eduardo Mañalac said the PNOC-EDC board has decided to list the entire 30 to 40 percent stake of the geothermal arm of the PNOC group in the Philippine Stock Exchange (PSE).
Mañalac said the board of the mother company, PNOC, is set to approve the plan.
After the PNOC board approval, he said they would forward the proposed privatization blueprint to the Privatization Council for the final approval.
"Hopefully by next week we have all these approvals that would allow us to proceed to the next stage," he said.
Portion of the proceeds from the sale is expected to cover for loan payments of PNOC-EDC which will fall due in the latter part of the year.
"The intent or hope is to complete the IPO by September. Part of the proceeds would be used to pay the bullet payments," he said.
"CLSA (PNOC-EDC privatization financial advisor) expects that there would be foreign capital infusion as well. We would be having roadshows," he said.
According to Mañalac, they have already secured conformational resolution from the Joint Congressional Power Commission (JCPC).
"It’s more or less settled already, that the package would involve only the power plant and a negotiated long-term steam sale," he said.
The PNOC-EDC’s privatization was stalled by the issue of whether the geothermal assets of the National Power Corp. (Napocor), under the Electric Power Industry Reform Act of 2001 or Republic Act 9136, should be sold with the steamfields which are being run by the PNOC-EDC.
Based on the approved resolution of the JCPC, the geothermal assets would just be sold with a steam supply agreement (SSA).
Under the earlier privatization blueprint being proposed by the CLSA, PNOC-EDC will follow the model of Petron Corp., another subsidiary of PNOC.
Based on the Petron privatization model, some 40 percent of the company was sold to a strategic partner (Saudi Arabian Co.), 20 percent through IPO and the remaining 40 percent was retained by PNOC.
05/29/2006
The board of the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) has approved the planned sale of the company’s 30 to 40 percent shares through an initial public offering (IPO) this September.
PNOC president Eduardo Mañalac said the PNOC-EDC board has decided to list the entire 30 to 40 percent stake of the geothermal arm of the PNOC group in the Philippine Stock Exchange (PSE).
Mañalac said the board of the mother company, PNOC, is set to approve the plan.
After the PNOC board approval, he said they would forward the proposed privatization blueprint to the Privatization Council for the final approval.
"Hopefully by next week we have all these approvals that would allow us to proceed to the next stage," he said.
Portion of the proceeds from the sale is expected to cover for loan payments of PNOC-EDC which will fall due in the latter part of the year.
"The intent or hope is to complete the IPO by September. Part of the proceeds would be used to pay the bullet payments," he said.
"CLSA (PNOC-EDC privatization financial advisor) expects that there would be foreign capital infusion as well. We would be having roadshows," he said.
According to Mañalac, they have already secured conformational resolution from the Joint Congressional Power Commission (JCPC).
"It’s more or less settled already, that the package would involve only the power plant and a negotiated long-term steam sale," he said.
The PNOC-EDC’s privatization was stalled by the issue of whether the geothermal assets of the National Power Corp. (Napocor), under the Electric Power Industry Reform Act of 2001 or Republic Act 9136, should be sold with the steamfields which are being run by the PNOC-EDC.
Based on the approved resolution of the JCPC, the geothermal assets would just be sold with a steam supply agreement (SSA).
Under the earlier privatization blueprint being proposed by the CLSA, PNOC-EDC will follow the model of Petron Corp., another subsidiary of PNOC.
Based on the Petron privatization model, some 40 percent of the company was sold to a strategic partner (Saudi Arabian Co.), 20 percent through IPO and the remaining 40 percent was retained by PNOC.
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