MANILA, Philippines - A unit of the Sy family’s SM Investments Corp. (SMIC) has unloaded a portion of its stake in banking giant Banco de Oro Unibank Inc. for a total consideration of P7.4 billion.
In a disclosure to the Philippine Stock Exchange, SMIC said subsidiary Multi-Realty Development Corp. has sold two percent of its stake in BDO to Khazanah Nasional Bhd through unit Pulau Kaca Investments Ltd.
Khazanah Nasional serves as the Malaysian government’s strategic investment fund.
“The transaction represents two percent of BDO’s total common shares, a reflection of the bank’s potential given its industry-leading business franchise, strong balance sheet, and good corporate governance,” SMIC said.
Multi-Realty’s interest in BDO would now be reduced to 6.81 percent from its previous shareholdings of 8.81 percent following the transaction.
According to SMIC senior vice president for investor relations Corazon P. Guidote the shares were sold at P104 apiece for a total of P7.4 billion.
Guidote said Khazanah Nasional is seen as a strategic investor by SMIC.
“The entry of Khazanah is seen to further strengthen the bank’s institutional shareholder base. It is also an affirmation of the attractiveness of the Philippines as an investment destination given its strong growth and sound macroeconomic fundamentals,” SMIC said.
BDO kept its position as the Philippines’ top bank in The Banker’s Top 1000 Global Banks Ranking 2014 report.
As of end September this year, the bank has over 850 operating branches and more than 2,400 ATMs across the country.