San Miguel Properties to shell out P876M for additional BoC stake

MANILA, Philippines - San Miguel Properties Inc. (SMPI) would need to shell out P876.21 million for the purchase of an additional 7.16 percent stake in medium-sized lender Bank of Commerce (BoC).

In a disclosure to the Philippine Stock Exchange, SMPI said the additional stocks to be acquired from Valiant Ventures & Development Holdings Inc. comprises 2.8 million outstanding and issued common shares and subscription rights to 5.24 million common shares of the sale shares.

SMPI said the consideration for the sale shares, amounting to P876.21 million, was based on Valiant’s enterprise value inclusive of its existing businesses, investments and other assets.

A downpayment equivalent to 25 percent of the total consideration was paid simultaneously with the execution of the deed. The remaining balance shall be due for payment upon compliance by Valiant of the terms and conditions provided for under the deed, inclusive of the confirmation and approval of the Bangko Sentral ng Pilipinas.

The acquisition was approved by SMPI’s board of directors in a meeting held last Dec. 8.

In April 2010, SMPI acquired additional 5.117 million common shares held by College Assurance Plan (CAP) in BoC for P180 per share.

BoC, which earlier raised its capitalization to P22 billion from only P6 billion, is one of the country’s progressive commercial banks which has been in operations since 1991. It offers a wide range of banking and other financial products and services, including traditional deposit products, corporate banking, consumer banking, treasury, asset management, trust services, trade and credit card services.