BDO divests from Dominion Holdings to trim profile
BDO Unibank, Inc. is selling a controlling stake in Dominion Holdings, Inc. (DHI) for about P2.54 billion as the country’s largest bank continues to streamline its corporate structure.
In a disclosure on Tuesday, BDO said it signed a share purchase agreement on Jan. 19 with Monte Sur Equity Holdings, Inc. for the sale of 1.51 billion shares. This is equivalent to 70 percent of DHI’s outstanding shares.
The transaction values DHI shares at an estimated P1.68 per share. Once completed, DHI will cease to be a subsidiary of BDO, the bank said.
Following the disclosure, DHI requested a voluntary suspension of its shares on the Philippine Stock Exchange.
The company said the trading halt was sought after it received information from its parent, BDO, regarding the signing of the share purchase agreement with Monte Sur.
BDO said the divestment is aligned with the group’s ongoing effort to streamline its organizational structure, particularly after DHI’s conversion into an investment holding company.
DHI was formerly known as BDO Leasing and Finance, Inc.
Under the terms of the deal, the consideration will be based on DHI’s net asset value at closing. This was estimated at P3.42 billion and the deal includes a P200-million premium, allocated on a prorata basis. Full payment will be made upon the closing of the transaction.
The transaction is subject to agreed closing conditions, including regulatory approvals and the conduct of a mandatory tender offer in accordance with the Securities Regulation Code.
Monte Sur was identified as the buyer in the transaction. BDO likewise noted that the company is considered a related party to certain shareholders of the bank.
