PNB selling 14% stake in holding firm via private placement

MANILA, Philippines — Philippine National Bank (PNB) is putting up for sale a minority interest in its holding company that invests, develops and sells assets comprised mainly of prime real estate properties.

In a disclosure to the Philippine Stock Exchange (PSE), the Lucio Tan-owned bank said its board of directors approved a plan to sell a 14 percent stake in PNB Holdings Corp. through a private placement.

The wholly owned subsidiary of PNB serves as a holding company of Tan’s most attractive real estate assets including PNB Financial Center along Diosdado Macapagal Avenue in Pasay City, the PNB Center along Ayala Avenue in Makati City, as well as the 8,000-sqm property at the intersection of Makati Ave. and Gil Puyat Ave. also in Makati.

The spin-off of these assets to PNB Holdings from PNB via a property-for-share swap yielded a P33.2 billion gain, boosting the bank’s net income to P31.7 billion in 2021 or 12 times the end-2020 level of P2.6 billion.

PNB also managed to beef up its capital base by an additional P10 billion after a property-for-share swap as part of the bank’s efforts to maximize the value of its prime real estate properties.

It reported approximately P34 billion, representing the market value of P46.68 billion and the book value of P12.6 billion of the properties exchanged for shares of PNB Holdings Corp.

PNB Holding’s vision is to focus on maximizing earnings from its current prime assets, which already generates a stable recurring cash inflow while taking advantage of future development opportunities.

PNB Holdings is envisioned to be the most preferred high-end luxury and sustainable developer in the country, whose primary task is to set a benchmark and transform the prime properties it owns.

As a game-changer, the holding company aims to redefine the meaning of innovation as it builds iconic buildings and world-class master-planned mixed-use developments that will change the Manila skyline.

Lucio Tan was earlier planning to list the holding company by way of introduction at the PSE to boost capital.

Listing by way of introduction allows a company to list its shares with the PSE without having to sell shares to the public immediately. Under the rules, listing of securities by way of introduction may be appropriate when the securities of an unlisted issuer are distributed by way of property dividend by a listed issuer to shareholders.