Bilyonaryo Yosi Tanco has finally found a buyer for STI Education System Holdings’ 20 percent stake in Philplans, after three years of searching for any taker for the financially-troubled, pre-need firm.
STI reported that its board – led by Tanco and his partner, Monico Jacob – approved on 24 September 2020 that sale of the school’s 20 percent stake in Maestro Holdings “to a third-party investor for a consideration higher than its present carrying value, subject to completion of certain closing conditions.”
Maestro Holdings owns 100 percent of PhilPlans, 99.89 percent of PhilCare, 90.77 percent of PhilLife and 100 percent of Banclife Insurance Co. Inc. Philplans owns 65% of Rosehills Memorial Management, Inc. (RMMI).
Tanco has been looking for a buyer of STI’s stake in Philplans since 2017 as the school wanted to focus solely on its core business.
STI, which did not identify the “third-party investor”, said the buyer would pay “higher than its (STI’s investment in Maestro) present carrying value, subject to completion of certain closing conditions.”
STI booked a P297.5 million impairment on its Maestro stake in March 20202 as Philplans’ value tanked. In its audit report, SGV & Co. noted that STI had “continued to classify its investment (Maestro) as held for sale in the amount of P419.1 million, measured at fair value less costs to sell, as of June 30, 2020.”
“The matter is significant to our audit because the classification of the investment as an asset held for sale and the determination of its fair value involve significant management judgment and estimate,” SGV said.