BDO Unibank Inc. has signed a Share Purchase Agreement with Monte Sur Equity Holdings Inc. for the sale of 1.51 billion shares, equivalent to a 70 percent stake, in Dominion Holdings Inc. (DHI), as the bank continues to streamline its corporate structure.
The transaction is valued at an estimated P2.54 billion, translating to about P1.68 per share. The purchase price represents a premium over DHI’s closing price of P1.40 on Monday and exceeds its 52-week high of P1.59, underscoring the buyer’s willingness to pay up for control of the listed holding company.
At the close of trade Monday, DHI has a market capitalization of P3.03 billion.
Upon completion, DHI will cease to be a subsidiary of BDO. The divestment follows the conversion of DHI—formerly known as BDO Leasing and Finance Inc.—into an investment holding company, prompting BDO to reassess its strategic fit within the group.
As the incoming controlling shareholder, Monte Sur Equity will be required to conduct a mandatory tender offer for the remaining shares of DHI under the same terms extended to BDO. Public shareholders currently hold about 11.5 percent of the company’s outstanding shares.
In anticipation of the tender offer and to allow investors time to evaluate the transaction, DHI sought and secured a one-day trading suspension on Tuesday, January 20.
The deal is subject to customary closing conditions, including the successful completion of the mandatory tender offer.
The sale is a clean exit for BDO from DHI as it sharpens its focus on core banking and financial services. The change in ownership signals for DHI a new chapter under Monte Sur Equity, which will assume control of the company’s strategic direction.
Information on Monte Sur Equity wasn’t immediately available.
