STI Investments applies for increased capital stocks
Posted on September 30th, 2009
STI Investments Inc. is planning to increase its capital as it prepares to acquire the pre-need and healthcare units of Philippine American Life and General Insurance Co. (Philamlife) that is why if filed for a hike in its capital stock.
The company filed with the Securities and Exchange Commission (SEC) a request for the approval of the increase in its authorized capital stock of P400 million from P400,000. STI Investments, owned by businessman Eusebio Tanco, would be having its major stockholders, Systems Technology Institute (STI), Philippine First Insurance Co. (PhilFirst), and Amina Inc., as its subscribers for the increased capital stocks.
STI Investments has entered into an agreement with Philamlife, the local unit of giant insurer AIG, to buy the latter’s stake in units Philam Plans and PhilamCare through STI and PhilFirst for an undisclosed amount.
PhilamCare serves as one of the country’s leading health maintenance organizations offering healthcare products and services to about 160,000 cardholders. Philam Plans is one of the 22 pre-need companies licensed by the SEC, with a trust fund of P30 billion and more than 300,000 plan holders as of end-June 2008.
In their agreement, the acquisitions will be folded into holding firm STI Investments. The transactions are still subject to regulatory approvals and are expected to be completed soon, with Deutsche Bank as the sole advisor in both transactions.
With it acquisition, STI hopes to form a synergy among its education, insurance and healthcare businesses.
It could effectively integrate financing in its educational institution STI, through educational pre-need plans in its product portfolio. STI operate a network of 95 tertiary schools which offer information technology, engineering, healthcare, business administration, and hotel management courses.
PhilFirst is the first Filipino domestic non-life insurance company. It was established in 1906 which offers various array of non-life insurance coverage to individuals and corporations.
