BDO buying out partners in Podium mall

MANILA, Philippines — BDO Unibank Inc. is shelling out close to P8 billion to buy out the 50 percent stake of Keppel Philippines Properties Inc. and Opon-KE Properties Inc. in SM Keppel Land Inc.

Once complete, the country’s largest bank, owned by the family of the late retail and banking magnate Henry Sy, would own 100 percent of the Podium complex in Ortigas.

In a statement submitted to the Singapore Exchange, Keppel Corp. Ltd. said BDO agreed to pay P7.99 billion for the share of Keppel Philippines Properties and Opon-KE Properties, subject to completion adjustments.

The amount is payable in cash in full on completion of the divestment. The price was arrived at on a willing-buyer, willing-seller basis, taking into account, among others, the agreed value of the property.

According to Keppel, the consideration is more than the net asset value of the sale shares of approximately P3.39 billion at end-2022.

Keppel added that the divestment is subject to the satisfaction of conditions precedent and is expected to take place by the first half of 2023.

“The divestment is in line with Keppel’s Vision 2030 asset monetization plans to unlock capital which can be channeled toward new growth opportunities,” it added.

In a disclosure to the Philippine Stock Exchange, BDO said its board of directors approved the purchase of the entire equity interests of Keppel Philippines Properties and Opon-KE Properties in SM Keppel Land consisting of 217.91 million common shares and 36.4 million redeemable preferred shares last March 25.

BDO said the parties signed the share purchase agreement covering the transaction on the same day.

“By this acquisition, BDO will consolidate its ownership of the Podium complex, presently 50 percent owned by SM Keppel Land, consisting of BDO’s Corporate Center Ortigas, the West Tower and the Podium mall,” the bank said.

The Podium complex currently houses BDO’s offices in Ortigas, with BDO already occupying approximately 63 percent of the office spaces.

According to BDO, completion is subject to, among others, customary closing conditions applicable to transactions of this nature and regulatory approvals.

In a separate disclosure, Keppel Philippines Properties said its board of directors approved the sale of its 40 percent stake in SM Keppel Land to BDO.

Opon-KE Properties also agreed to sell its 10 percent interest to the largest bank in the Philippines. Keppel Philippines Properties has a 78.4 percent effective interest in Opon-KE Properties.

“Following completion, SM Keppel Land will cease to be an associated company of Keppel Philippines Properties,” the company said.