This was revealed by STI, chaired by bilyonaryo Eusebio “Yosi” Tanco, which claimed to have gained P60 million from the sale of its 20 percent stake in Maestro Holdings for $10 million (P480 million) deal with Chita SPC Limited.
Maestro Holdings owns Tangco’s insurance interests, specifically PhilPlans First, Inc. (100 percent), Philippine Life Financial Assurance (91 percent), Philhealthcare (99 percent).
Tanco announced the shutdown of Philplans’ provincial branches in April 2020 as it blamed the coronavirus pandemic for its financial problems.
But a deeper look into its books showed that PhilPlans has been in a P3 billion deficit hole since 2018.
STI said Chita’s purchase price ($7.80 for each of the 1.281 million shares in Maestro) was pegged at a 20 percent premium on its book value as of March 2020.
Tanco has been looking to dump Maestro from STI’s books since 2017. Two months ago, STI reported selling the stake to a “third-party investor” which it did not name.
STI described Chita as “a segregated portfolio company, duly organized under the laws of the British Virgin Islands with principal office at Craigmuir Chambers, P.O. Box 71 Road Town, Tortola VG 1110, British Virgin Islands.”
Chita is injecting the Maestro Holdings’ stake in its Cam Sea Special Opportunities Fund segregated portfolio manged by NP Investments Co.
The STI board approved the sale on 11 December 2020 and the deed of absolute sale was executed four days later.
“The sale will allow STI to monetize its investment in Maestro Holdings which STI intends to use for its core business. In addition, STI will recognize a gain of P60 million over its carrying value as of March 31, 2020. Lastly, STI ESG expects that the derecognition of the asset will reduce the volatility in its earnings going forward,” said STI.