We write in response to the letter of the Exchange today, seeking clarification and/or confirmation of the news article entitled “Tycoon Tan’s bank brings forward property listing” posted in Business Mirror (Online Edition) on April 11, 2022, reporting in part that:
“BILLIONAIRE Lucio Tan’s Philippine National Bank (PNB) brought forward its plan to list its property unit, now aiming to float the asset by the end of this year to boost capital.
That puts the listing of PNB Holdings Corp. ahead of the original 2023 schedule and will generate about P10 billion ($194 million) of additional capital, President and Chief Executive Officer Jose Arnulfo A. Veloso said in an interview.
. . . . ”
Please be advised that the statement in the above news article is consistent with the May 3, 2021 disclosure. In the May 3, 2021 disclosure, PNB just submitted the initial requirements of key regulators, such as but not limited to Securities and Exchange Commission (SEC) and was waiting for their approval. PNB is pleased to announce that it already attained the approvals of the said regulators for its prior submissions by the end of the year 2021.
Based on the recent success in terms of attaining the regulatory approvals, such as but not limited to the Bank receiving the Certificate of Filing the Notice of Property Dividend Declaration issued by SEC, which was disclosed to PSE on December 28, 2021, we wish to confirm that the Bank hopes that remaining regulatory approvals needed to have PNB Holdings Corporation (PHC) listed would be attained before the end of the year 2022.
Nonetheless, the timeline of PHC’s listing is still subject to regulatory and internal approvals as well as other external factors that are part of the listing processes.
We also want to clarify that the Bank’s remaining stake in PHC has a fair value of around P23 billion as of March 31, 2022, which is only 2% of the Bank’s total assets. Consistent with the disclosure provided to PSE on May 31, 2021, the Bank recognized P34 billion in its books reflecting the difference between the fair value of P46.677 billion and the book value of P12.6 billion of the properties exchanged for shares of PHC. Specifically, the change was reflected in the Bank’s income statement as of May 28, 2021, thereby strengthening its financial position as the transaction generated P10 billion additional capital, after the effects of the property dividends.
We trust you will take note accordingly. |