By The Financial District
Apr 26, 20232 min
BDO Unibank Inc. is buying out its joint venture partners in SM Keppel Land Inc. to take full ownership of the Podium Complex in Ortigas.
Photo Insert: The Podium Complex in Ortigas consists of BDO's Corporate Center Ortigas, the West Tower, and the Podium Mall.
The bank said in n a disclosure its board of directors had approved the purchase of the entire equity interests of Keppel Philippines Properties Inc. and Opon-KE Properties Inc. in SM Keppel Land.
These consist of 217,910,000 common shares and 36,401,500 redeemable preferred shares equivalent to 50 percent of the outstanding capital stock of SM Keppel Land at an adjusted net asset value at closing.
Keppel Philippines' 40% stake — 174,328,000 common shares and 29,121,200 redeemable preferred shares — in SM Keppel Land accounts for the bulk of the transaction. Opon-KE holds the remaining 10%.
"By this acquisition, BDO will consolidate its ownership of the Podium Complex, presently 50% owned by SMKL, consisting of BDO's Corporate Center Ortigas, the West Tower, and the Podium Mall," the bank said.
The complex currently houses BDO's offices in Ortigas. The bank currently occupies approximately 63% of the available office space.
A share purchase agreement covering the transaction has been signed and BDO said completion of the deal would be "subject to, among others, customary closing conditions applicable to transactions of this nature and regulatory approvals."
BDO is the country's biggest bank in terms of assets. Its net profit last year climbed by 33.4% to a record P57.1 billion on the sustained strength of its core businesses despite a challenging business environment.
The 2022 results led to a return on average common equity of 13%, improving to 15.3% for the fourth quarter, from 10.5% in 2021 and 12.8% in 2019 before the onslaught of the pandemic.
Non-interest income rose 17% to P71.5 billion due to the strong performance of fee income, foreign exchange, and fixed-income client-flow businesses. Asset quality improved further, with the non-performing loan ratio declining to 1.95% and NPL coverage strengthening to 167%.
Total capital expanded to P461.5 billion, with capital adequacy ratio and common equity tier 1 ratio both comfortably above regulatory minimum levels at 14.5% and 13.4%, respectively. Book value per share rose by 9.0% to P86.20 year-on-year.