Property

To boost bank’s weak position: Lucio Tan readies sale of PNB properties with P47B property shares swap

Bilyonaryo Lucio Tan is transferring P47 billion worth of properties of Philippine National Bank to his holding company to pave the way for the liquidation of these assets.

The PNB board approved on 25 September 2020 the bank’s subscription of 466.77 million shares of PNB Holdings Corp. at its par value of P100 per share in exchange for real estate assets of the country’s fourth largest private lender. PNB Holdings, a wholly-owned subsidiary of PNB, is increasing its autorized capital stock to facilitate the sale.

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PNB said the move was meant “to realize the market value of the Bank’s prime properties and reduce its low-earning assets to strengthen the Bank’s financial position.”

Among the key assets in PNB’s portfolio are:

* An 8,000-square-meter prime lot at the corner of Paseo de Roxas and Sen. Gil Puyat Avenue, Makati City foreclosed from musician Ramon “RJ” Jacinto in 2010.

*The 10-hectare PNB head office along Macapagal Avenue

*The Allied Bank building on Ayala Avenue, Makati.

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