BDO completes Keppel buyout in Podium complex

MANILA, Philippines — BDO Unibank Inc. has completed the buyout of the 50-percent stake of the Keppel Group in the Podium complex in Ortigas Center.

In a disclosure to the Philippine Stock Exchange (PSE), the country’s largest bank said it has completed the acquisition of its joint venture partner in SM Keppel Land Inc.

The stake consists of the 40-percent interest of Keppel Philippines Properties Inc. and 10-percent stake of Opon-KE Properties Inc. in SM Keppel Land – the developer and operator of the Podium complex.

“By this acquisition, BDO will now fully own the Podium complex, consisting of BDO’s Corporate Center Ortigas, the West Tower and the Podium Mall,” BDO said.

On March 27, the bank announced it agreed to buy out the Keppel Group’s 50-percent direct equity stake in SM Keppel Land.

The Keppel Group’s decisions to divest its stake in SM Keppel Land, as part of its Vision 2030 asset monetization, plans to unlock capital which can be channeled toward new growth opportunities.

In a separate disclosure to the PSE, Keppel Philippines Properties said it sold 174.33 million common shares and 29.12 million redeemable preferred shares to BDO based on the adjusted net asset value of SM Keppel Land and collected cash last Dec. 22.

Opon-KE Properties also agreed to sell its 10-percent interest to BDO. Keppel Philippines Properties has a 78.4 percent effective interest in Opon-KE Properties.

“The company wishes to announce that the divestment has been complete, and SM Keppel Land has ceased to be an associated company of the company,” Keppel Corp. Ltd. said in a disclosure to the Singapore Exchange.

Based on its disclosure last March 27, Keppel Corp. said BDO agreed to pay P7.99 billion for the share of Keppel Philippines Properties and Opon-KE Properties in SM Keppel Land, subject to completion adjustments.

According to Keppel, the consideration is more than the net asset value of the sale shares of approximately P3.39 billion at end-2022.

The Podium complex currently houses BDO’s offices in Ortigas and the Podium Mall.

As early as 2014, BDO partnered with Keppel for the redevelopment of the Podium complex in Ortigas, with the construction of the BDO Corporate Center.