BDO Unibank Inc. (BDO) has signed a deal to sell its controlling stake in Dominion Holdings Inc. (DHI), equivalent to more than 1.5 billion shares or a 70-percent interest, for approximately P2.54 billion.
In a disclosure, BDO said the share purchase agreement was signed on Monday with Monte Sur Equity Holdings Inc. for the sale of 1,513,732,718 shares at P1.68 apiece.
“The disposition of DHI is aligned with the BDO Group’s continuing policy of streamlining its organizational structure following the conversion of DHI into an investment holding company,” the bank said.
It added that with the transaction, to be done through a block sale of shares through the Philippine Stock Exchange (PSE), BDO would receive an estimated P2.54 billion and Dominion Holdings would cease to be a subsidiary of the bank.
The consideration was based on the pro-rata share of BDO in the net asset value of Dominion Holdings as of the closing date, estimated at P3.42 billion, and a premium of P200 million as agreed by the parties.
Full payment will be made upon the closing of the transaction.
BDO Unibank, a member of the Sy family-led SM Group, said the deal remained subject to customary closing conditions, including the conduct of a mandatory tender offer to Dominion Holdings’ remaining shareholders “and other customary and arms-length conditions precedent.”
Dominion Holdings requested a voluntary suspension in the trading of its shares on Tuesday to facilitate the transaction and to enable full disclosure to the investing public while the details of the sale were being finalized.
BDO shares on Tuesday fell P3.30, or 2.34 percent, to close at P138.00 each amid a 1.32-percent drop for the PSE index.
Prior to the trading suspension, Dominion Holdings shares last traded at P1.48 each on Monday.