SM sells part of BDO stake to Malaysia's state investor

ABS-CBN News

Posted at Dec 23 2014 11:26 AM | Updated as of Dec 23 2014 09:36 PM

MANILA, Philippines - Henry Sy-led SM Investments Corp. said it sold part of its stake in BDO Unibank to the Malaysian government's strategic investment fund.

In a disclosure to the stock exchange, SMIC said its subsidiary Multi-Realty Development Corporation sold a 2 percent stake in BDO to Khazanah Nasional through its subsidiary, Pulau Kaca Investments Limited.

The transaction represents 2 percent of BDO’s total common shares.

"(This is) a reflection of the bank’s potential given its industry-leading business franchise, strong balance sheet, and good corporate governance... 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.

While the transaction value was not disclosed, COL Financial said based on the PSE's end of day market report, the sale was done at P104 a share, for a total size at P7.45 billion.

Earlier this year, Khazanah purchased an 8 percent stake in Philippine property developer 8990 Holdings Inc. for P2.93 billion, the Malaysian state investor's first foray investing in the Philippines.