Current Report under Section 11 of the Revised Securities Act (RSA) and RSA Rule 11(a)-1(b)(3) Thereunder

October 27, 1999 PSE CIRCULAR FOR BROKERS NO. 2746-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. October 26, 1999 Date of Report (Date of earliest event reported) 2. SEC Identification Number CE-02536 3. BIR Tax Identification No. 003-828-269 4. ABOITIZ EQUITY VENTURES, INC. Exact name of registrant as specified in its charter 5. Cebu City, Philippines province, country or other jurisdiction of incorporation 6. (SEC Use Only) Industry Classification Code: 7. Archbishop Reyes Ave., Banilad, Cebu City 6000 Address of principal office Postal Code 8. (032) 2310-705 Registrant's telephone number, including area code 9. N.A. Former name or former address and former fiscal year, if changed since last report. Registrant's telephone number, including area code 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common Stock P1 Par Value 5,376,696,911 11. Indicate the item numbers reported herein: 2 Item 2. Acquisition of Assets Consistent with the Corporation's strategic direction of concentrating on its core businesses of electricity and banking, the AEV Board in its special meeting held at 8:00 A.M. today October 26, 1999, adopted and passed the following resolution: "WHEREAS, it is Aboitiz Equity Ventures' (AEV) strategic direction to focus on its core businesses of electricity and banking; "WHEREAS, the increase of AEV's stake in the Union Bank of the Philippines, Inc. (UBP) is consistent with the above-stated strategic direction of the Corporation; "NOW, THEREFORE, be it: RESOLVED, as it is hereby resolved, that management at any proper and opportune time, be authorized to purchase at the best terms and conditions obtainable, up to Forty (40) Million shares of the capital stock of Union Bank of the Philippines, Inc. and is hereby earmarking P1.3B from its current cash position for the purpose; Additional Information In a deliberate effort to pursue the company's corporate strategy of concentrating on its core businesses which are Power and Banking, the Board of Directors of Aboitiz Equity Ventures (AEV) authorized management to purchase some 40 million shares of Union Bank from the market. The Board has earmarked approximately One Billion Three Hundred Million Pesos(P1.3B) for the purchase. Currently, AEV owns 36.7 percent of Union Bank, while the other members of the Aboitiz Group own approximately 8 percent, bringing the group's consolidated ownership to 44.7 percent The additional shares would bring this ownership to 52 percent of Union Bank. SIGNATURE(S) Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ABOITIZ EQUITY VENTURES By: (SGD.) JUAN ANTONIO E. BERNAD Corporate Information Officer/SVP/CFO