Dispute looms over BDO stake sale in Mabuhay Vinyl

Written by Erik dela Cruz / Reporter 

A LEGAL dispute is brewing over the move of Banco de Oro Unibank (BDO), the country’s largest bank, to sell its equity interest in Mabuhay Vinyl Corp. (MVC) to Tosoh Corp. of Japan and Philippine Resins Industries Inc. The said transaction is reportedly worth P234.6 million.

Tosoh, through its lawyers, told the Securities and Exchange Commission and the Philippine Stock Exchange in a December 22 letter that it suspended the acquisition of the MVC shares from BDO after receiving a letter from Metro Alliance Holdings and Equities Corp. (Mahec). The latter is claiming it is the rightful owner of the shares held by the bank.

BDO, controlled by retail tycoon Henry Sy Sr., announced in October that it had reached an agreement to sell its interest in MVC to Tosoh and Philippine Resins, consisting of 234.6 million shares, at P1 per share. 

BDO acquired the MVC shares in June 2007 at a cost of P179.2 million. This, after the bank merged some of its units and sold redundant and non-core assets over the past two years after joining with Equitable PCI Bank in 2007.

Mahec, an investment holding company owned by businessman William Gatchalian holds interests in the wholesale distribution and marketing of pharmaceutical, consumer and medical supply products and agrochemicals.

Tosoh lawyers said their client and Philippine Resins “are committed to acquiring the MVC shares pursuant to the agreement with BDO, provided the dispute between BDO and Mahec is resolved and there is no claim to the shares of any nature by any party.”

The disputed shares constitute 34.08 percent of the outstanding capital stock of MVC. Tosoh lawyers said the acquisition of such shares would result in Tosoh owning more than 50 percent of the outstanding shares of MVC, a listed company. READ MORE...