Metro Manila (CNN Philippines, April 26) — Tycoon Lucio Tan-led Philippine National Bank is set to issue property dividends in the form of shares of its holding firm, reaching over 200 million, as it moves to liquidate its low-earning assets to boost its financial status.
In a disclosure on Monday, the listed company said its board of directors green-lighted the declaration of shares of PNB Holdings Corp. (PHC) as property dividends to the stockholders of PNB on record as of May 18.
The property dividends consisting of 239.353 million shares, priced at ₱100 apiece will be released to PNB stockholders on May 18.
“The property dividend shall be paid at a ratio of 0.156886919 shares of PHC for every 1 share of PNB,” it said in the filing.
Property dividends happen when a firm distributes assets to investors other than cash.
In January, the Bangko Sentral ng Pilipinas cleared PNB’s planned infusion of investment in PHC as part of the latter’s target “to realize the market value of its prime properties and reduce its low-earning assets to strengthen its financial position.”
“The timing of the development of these properties are already being studied by the real estate experts, who are already working closely with PNB Holdings Corp. and PNB,” PNB president and chief executive officer Wick Veloso was quoted as saying in a separate statement.
“The distribution of PNB Holdings shares through the dividend declaration allows PNB stockholders to share from the benefit of the realized values of the properties and any future valuation gains,” he added.
The bank’s inventory includes the PNB Financial Center in Pasay, the PNB Makati Center in Ayala’s Central Business District, and the Prime Property at the corner of Buendia Avenue and Paseo De Roxas, also in Makati.
Shares in PNB went up by ₱2.95 or 12.85% to close at ₱25.90 each on Monday.
