GSIS raises Metro Pacific stake to 11.98%; acquires 2.49B shares

State pension fund Government Service Insurance System more than doubled its stake in Metro Pacific Investments Corp., a diversified investment holding company planning to delist from the Philippine Stock Exchange.

GSIS, in a letter to Metro Pacific, bought a total 2.49 billion common shares between 23 August and 4 September to increase its total holdings to 3.44 billion, equivalent to an 11.98 percent stake. 

Financial details of GSIS’ share purchase were not immediately disclosed but the market value of the 2.49 billion shares in Metro Pacific is at P12.67 billion.
Metro Pacific shareholders in August overwhelmingly approved the delisting of the company, with a target date of 9 October this year. The company, with interests in power, water, infrastructure, hospitals, and toll roads, believes its shares are undervalued, limiting its ability to raise capital for various projects.
As a result of the decision to delist, Metro Pacific will make a tender to minority shareholders at a price of P5.20 a share. It is unclear whether GSIS will unload its stake in Metro Pacific at that price.