Tycoon Lucio Tan-led conglomerate LT Group Inc. has cemented a controlling stake in Philippine National Bank by acquiring 10 firms that own shares in the bank.
The deal boosts LTG’s indirect voting control in PNB to 59.88 percent from 48.61 percent.
In a disclosure to the Philippine Stock Exchange on Tuesday, LTG said it had acquired additional indirect ownership of PNB through the following companies: All Seasons Realty Corp., Society Holdings Corp., Profound Holdings Inc., Total Holdings Corp., Kentwood Development Corp., Fil-Care Holdings Inc., Safeway Holdings & Equities Inc., Purple Crystal Holdings Inc., Dynaworld Holdings Inc. and La Vida Development Corp.
LTG had committed to subscribe through its holding companies to at least 97.8 million out of 163 million new common shares to be issued by PNB through a stock rights offering.
PNB has priced its stock rights offering at P71 per share at an entitlement ratio of 15 new shares for every 100 old shares held. Its offering will start on Jan. 27 and end on Feb. 3.
This funding exercise is meant to strengthen PNB’s capital base as the bank seeks to “expand and deepen lending capabilities to more fully address the fast-growing Philippine economy, including the needs of its burgeoning consumer segment.”
The bank intends to use the proceeds primarily to build and refocus its consumer lending business through capital infusion into fully owned subsidiary Allied Savings Bank.
This recapitalization program is seen to allow PNB to maintain a core or tier 1 capital adequacy ratio of 15 percent of risk assets and overall CAR of 18 percent. It is also estimated to boost PNB’s public ownership.—Doris C. Dumlao