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3 top assets worth more than bank’s market cap: PNB property dividends pegged at P15.60 per share

The property dividends to be issued by Philippine National Bank of bilyonaryo Lucio Tan are worth P15.60 per share, or nearly half of the bank’s stock market price.

This is based on declared market value of P46.7 billion three properties underlying the dividends – the PNB headquarters in Pasay, the PNB building at Ayala Avenue, and the vacant lot at the corner of Buendia Avenue and Paseo De Roxas used to be owned by RJ Jacinto.

PNB last traded at P28.70 per share or a market cap of P43.79 billion.

The PNB board approved the distribution of 239.4 million common shares of PNB Holdings Corp. (51 percent of the company) as property dividends to the bank’s shareholders as of record date 18 May 2021.

COL Financial believes the property dividends and the planned listing of PHC by way of introduction this year would be a boon to both the bank and the shareholders.

“This will allow PNB to realize the fair market value of the said properties, reduce PNB’s low-earning assets, and improve its capital position. PHC can now more aggressively pursue plans to develop these properties, which potentially includes partnering with other property developers,” COL Financial said.

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