Private

PRIVATIZATION PROCEDURE

Subject and Manner of Sale

The issuance of Privatization is to limit the government ownership and expand the ownership of the private sector.  As such, the plan, except for government of P50 Million calls for full subscription of Islamic bank’s authorized capital stock of One Billion at par value.  The following procedures will be adopted by the Asset Privatization Trust:

     

  • Sale and issuance of up to Nine Million Four Hundred Ninety Seven Thousand Seven hundred Forty Six (9,497,746), primary common shares of Al-Amanah Islamic Investment Bank of the Philippins (AIIBP) broken down into the following class of common shares:Classes Common Shares
    CLASS NO. OF SHARES
    “A” 4,600,000
    “B” 897,746
    “C” 4,000,000
    TOTAL 9,497,748
  • Privatization of AIIBP up to 95% of issued and outstanding shares of stock after the sale and issuance of primary shares above.
  • Method of Sale of Primary SharesSubject to the final approval of the Committee on Privatization
    • Conduct a pre-emptive rights offering of Eight Million Five Hundred Forty Seven Thousand Nine Hundred Seventy One (8,547,971) primary class “A” and “C” common shares, entitling all stockholders of record as of December 31, 1997 to purchase such number of preemptive rights common shares to maintain their proportionate shareholdings as of said reckoning date.  Should the number of class “A” and “C” shares be insufficient to fully satisfy the subscription of deficiency, if any, would be filled by primary Class “B” shares.
    • Offer for subscription by stockholder, who fully subscribed their right of pre-emption, shares arising from the other stockholders’ waiver of their pre-emptive rights.
    • Conduct a public bidding for the residual shares after transaction 2 aboveThe shares to be offered in a public bidding is estimated at EIGHT MILLION FIVE HUNDRED NINE THOUSAND SIX HUNDRED TEN (8,509,610).  This is equivalent to aggregate pre-emptive rights shares allocated among the National Government (NG), Development Bank of the Philippines (DBP), Social Security System (SSS), Government Service Insurance System (GSIS) and Asset Privatization Trust (APT).  The final number of shares may increase or decrease depending on the outcome of the pre-emptive rights offering.
    • Offer AIIBP primary shares to Small Local Investors (SLI).  The number of shares initially allocated is NINE HUNDRED FORTY NINE THOUSAND SEVEN HUNDRED SEVENTY FIVE (949,775) shares.
  • Pricing
    • Subject to the final approval of the Committee on Privatization (COP), the offer price for the pre-emptive right offering is PESOS: One Hundred Fifty and 00/100 (P150.00) per share.
    • The above offer price per share of the pre-emptive right shares shall be the recommended minimum bid price for the public bidding.
    • The offer price per share of the common shares to be offered to SLI’s shall be equal to the winning bid price in the public bidding.

Bidding Guidelines

     

  • The Islamic Bank intends to issue a substantial amount of its capital stock to both foreign and/or local institutional investors.  The bidding guidelines are enclosed as Appendix I

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Due Diligence

     

  • The conduct of due diligence is at the option of prospective bidders.
  • Only parties or consortia formed by interested parties whos submit a duly accomplished statement of interest and confidentiality agreement in th form supplied by APT (Appendix 2) and paid a non-refundable due diligence fee of ______ to APT will be allowed to conduct due diligence.
  • The due diligence fee shall not form part of the bid price.

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Sale Agreement and Deed of Assignment

     

  • Draft copies of the sale agreement and Deed of Assignment will be available by _________.  This will form part of the documents to be submitted by the bidder on the bidding date.

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Pre-Bidding Conference

     

  • Pre-bidding conference will be held on ____________ and will be open to all interested investors.
  • Each bid must be accompanied by a bid deposit in the amount of ______ (P___) in the form and together with all the requirements as specified in the Bidding Guidelines.

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For more information on privatization of Islamic Bank, please contact:

Privatization Management Office (PMO)
3rd flr., North Davao Mining
10A Gamboa St., Legaspi Village
Makati City, Philippines.
Tel: (632) 8188305
Fax: (632) 8933453