MANILA - The president of diversifying conglomerate San Miguel Corp. is still hoping that he will be able to acquire the Social Security System’s 22-percent stake in Philex Mining Corp. sooner than later.

Asked about the progress of talks with SSS on the possible acquisition of the government financial institution’s interest in the country’s largest publicly listed mining company, SMC president and COO Ramon Ang told The STAR “we are still hoping.”

Ang earlier revealed that SSS had made an offer for him to buy its stake in Philex, and that another key shareholder in the mining firm, businessman Roberto “Bobby” Ongpin, was convincing him to grab this opportunity.

“The SSS offered to us its shares so that we could join Bobby (Ongpin). Bobby is convincing me [to take on the offer]. If they want me there, I will only agree if I can get a big chunk,” Ang said.

He pointed out that the (current market) price of Philex may not be good enough for SSS, but if they can give a much better price, SSS will probably sell to them, adding that this potential investment was his own, and would not involve San Miguel.

Ongpin’s group has been beefing up its shareholdings in Philex. Goldenmedia Corp., a company beneficially owned by Ongpin, has acquired an additional 50 million shares in Philex for P12.75 each or a total of P637.5 million.

Ongpin is vice-chairman of Philex and chairman of its executive committee.

As of end-September this year, Goldenmedia owns 0.56 percent or 27.3 million shares of Philex while another Ongpin-led group Boerstar Holdings owns 3.59 percent of the country’s largest mining firm. Ongpin is reportedly an ally of Ang.

The Ongpin group, backed up by UK-based emerging markets fund Ashmore Investment Management Ltd., already holds an estimated 15 percent in the mining firm while Hong Kong-based First Pacific Co. Ltd. holds 22 percent.

GSIS itself was reported to be accumulating shares of Philex to further build up its position in the mining firm.

According to First Pacific managing director and Metro Pacific Investments Corp. chairman Manuel Pangilinan who also chairs Philex, they have offered to acquire SSS’ stake in Philex but the pension fund’s president Romulo Neri refused, saying they intend to sell next year.

“I was able to talk to Romulo Neri and he said they are not [selling] now but maybe next year. So we backed off,” Pangilinan said.

The SSS has said that it would only sell its holdings in Philex at the right price.

Neri earlier said the pension fund would not sell its stake until next year to optimize pricing. He said if the SSS would sell out, it would sell as a block with Development Bank of the Philippines (DBP). The combined stock of the two represents a crucial voting block that can make or break First Pacific’s bid for the controlling stake in Philex.

The SSS-DBP’s combined 24-percent stake in Philex could be worth P9.3 billion.

First Pacific owns a stake of 22 percent in the mining firm and wants to raise this substantially to 51 percent. However, it is encountering some problems. It has been actively buying Philex shares from the open market and has earlier made pronouncements that it intends to make Philex its mining platform in the Philippines.

For one, Pangilinan said they could no longer locate 20 to 30 percent of Philex’s shareholders so First Pacific could not buy them out.

He said an option is to sell more shares via a rights offer so they could increase their stake by snapping up shares unsubscribed by missing shareholders. But other stockholders may not be willing to undertake such an offer because it would require them to shell out additional funds to prevent their stakes from getting diluted.

Pangilinan said it is also difficult to determine the true value of Philex shares at this point since the company’s mining and oil exploration activities are still in the early stages. Pangilinan added that a big uncertainty hangs over the size and quality of the deposits in Philex’s Boyongan mine.

“The oil and gas business of Philex is more speculative. If initial indications are real, it’s going to be a huge oil company. If that is so, it’s (Philex) worth more than P10 [per share].”

But Ang was quick to dispel claims that his potential entry in Philex would create trouble in the boardroom. He said the move was not meant to edge out the First Pacific group.

“I think there’s nothing to fight about here because we can always have an equal (power) share (agreement),” Ang said.