Philippine National Bank yesterday said it is pursuing plans to dispose its low-earning assets, strengthen its capital position and improve its ability to generate more revenues in the years to come.
Wick Veloso, PNB chief executive officer said at yesterday’s stockholders meeting the recently announced issuance of property dividends is part of PNB’s move to recognize and monetize the unrealized value of its three major properties– the PNB Financial Center in Pasay, 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.
“Through the distribution of shares, all shareholders of PNB will become part owners of PNB Holdings, allowing them to benefit from future potential gains from the development of the properties,” Veloso said.
He said stockholders can cash in on their dividends by selling their shares in the PSE once PNB Holdings is listed.
“Selling their shares in the PSE will result to the best market price and lowest cost for the stockholders. They may also opt to buy additional shares if they wish to benefit more from the long-term growth of PNB Holdings Corp,” Veloso said.
“Shareholders will be given the opportunity to directly participate and earn from any growth that PNB Holdings is expected to generate. With the planned listing of the PNB Holdings shares in the PSE, shareholders may opt to dispose their shareholdings at the most cost-efficient manner at the most appropriate time and capitalize on potential valuation gains.”
A fully-owned subsidiary of PNB, PNB Holdings Corp. serves as a holding company which invests, develops, and sells all kinds of assets, majority of which are prime real estate properties.
Earlier this year, PNB obtained regulatory approval to make additional investments in PNB Holdings Corporation in exchange for certain properties of the bank.
The investment into PNB Holdings and the dividend declaration are two important phases of the bank’s strategic initiative to recognize the unrealized value of its three major properties.
Veloso also said PNB Holdings increased its authorized capital stock to reflect the value of the three prime properties. — Jimmy Calapati
