BDO declares a property dividend of Treasury shares

BDO [BDO 145.50, down 1.8%; 92% avgVol] [link] revealed that its board of directors approved the declaration of a property dividend of BDO Treasury shares that will result from the “eventual merger of BDO and SM Keppel Land Inc.” BDO said that the merger would result in the “creation of Treasury shares equivalent to approximately 1% of outstanding shares”. No dates were provided.   
 

MB bottom-line: The overall size of the dividend looks to be in the range of about 52 million BDO common shares, which works out to approximately 0.01 BDO Dividend Shares per existing BDO share, or about 1 Dividend Share per 100 existing BDO shares owned. This is barely going to be noticeable for most shareholders, as it would take approximately P14,550 worth of BDO stock to receive just one share worth P145.50. I don’t think anyone is jumping into the stock for this little treat. If they’re getting in, it’s because banking is ultra-profitable right now and everything seems geared towards allowing the banks to make more money.  

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