BDO sells controlling stake in DHI

BDO UNIBANK, Inc. (BDO) is selling its controlling stake in its listed investment holding company Dominion Holdings, Inc. (DHI) for P2.54 billion.

The bank on Jan. 19 signed a share purchase agreement with Monte Sur Equity Holdings, Inc. to sell 1,513,732,718 shares or 70% of DHI at P1.68 per share, it said in a disclosure to the stock exchange on Tuesday.

Following the sale, DHI will no longer be a subsidiary of BDO.

“The disposition of DHI is aligned with BDO Group’s continuing policy of streamlining its organizational structure following the conversion of DHI into an investment holding company,” the bank said.

On Tuesday, DHI requested a voluntary trading suspension that will be lifted at 9 a.m. on Jan. 21 to give investors time to consider the news.

The transaction is still subject to the necessary regulatory approvals and closing conditions, which include the conduct of a mandatory tender offer by Monte Sur Equity Holdings.

DHI, formerly BDO Leasing and Finance, Inc., holds or owns real estate properties, securities or shares of stocks, and other assets of companies and engages in investment and business activities involving these assets.

The Securities and Exchange Commission in July 2022 approved DHI’s change of name and the shift in its purposes to that of a holding company from a leasing and financing company.

DHI booked a net income of P34.81 million in the third quarter of 2025, down from P36.53 million in the prior year. This brought its nine-month profit to P106.43 million, declining from P171.01 million previously.

Its shares last closed at P1.40 each on Jan. 19.

Meanwhile, its parent BDO’s attributable net income rose by 6.1% year on year to P22.47 billion in the third quarter, bringing its nine-month earnings to P63.09 billion, up 4.07% from the prior year.

Its shares dropped by P3.30 or 2.34% to close at P138 apiece on Tuesday.

BDO ENDS BOND OFFER
Meanwhile, BDO closed its public offering of sustainability bonds ahead of schedule as it saw robust demand, it said in a separate disclosure on Tuesday.

“Originally set to run from Jan. 7 to 19, the bank decided to close the offer period early, on Jan. 16, following strong demand from both retail and institutional investors,” the bank said.

It has yet to announce the final issue size. The bonds will be issued, settled, and listed on the Philippine Dealing & Exchange Corp. on Jan. 26.

BDO earlier said it wants to raise at least P5 billion from its offering of three-year papers that marks its fifth issuance of peso-denominated ASEAN Sustainability Bonds.

The bonds carry a coupon rate of 5.7125% per annum. They were offered at a minimum investment amount of P500,000 and in additional increments of P100,000 thereafter.

“The net proceeds of the issuance are intended to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework, support the bank’s lending activities, and diversify the bank’s funding sources,” BDO said.

Standard Chartered Bank was the sole arranger for the transaction and was also a selling agent along with BDO. BDO Capital and Investment Corp. was the financial advisor.

BDO has issued a total of P286.7 billion in sustainability bonds since January 2022.

It last tapped the domestic market in July last year via its fourth ASEAN Sustainability Bond issuance, raising P115 billion via 1.5-year papers, well above the initial P5-billion plan and marking the largest peso bond issuance in the country to date. — A.M.C. Sy