Lucio Tan-led Philippine National Bank said its stockholders can expect to gain from its disposal of low-earning assets through their stake in PNB Holdings Corporation which will be listed at the Philippine Stock Exchange after being distributed as property dividends.
At bank’s Annual Stockholders Meeting, PNB President Wick Veloso said “We are already doing preparatory work for the listing by way of introduction. At this stage, we cannot provide a definite timeline for the listing as this involves regulatory approvals. However the listing is a priority of PNB.”
The bank 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.
PNB announced the property dividends as part of its move to recognize and monetize the unrealized value of its three major properties, namely: 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,” said Veloso.
Stockholders can cash in on their dividends by selling their shares in the PSE once PNB Holdings is listed by way of introduction. 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.
He added, “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,” said Veloso.
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.
Its vision is to focus on maximizing earnings from its current prime assets, which already generates a stable recurring cash inflow while taking advantage of future development opportunities.