LISTED property developer Keppel Philippines Properties, Inc. is selling its entire stake in the entity behind the Podium Complex, giving Sy-led BDO Unibank, Inc. complete ownership over the asset.

In a stock market disclosure on Monday, Keppel said its board on March 25 approved the sale of its 40% stake, which along with another seller, Opon-KE Properties, Inc., will hand over to BDO their combined 50% stake in SM Keppel Land, Inc.

In a separate disclosure, BDO said that with the acquisition, it will consolidate its ownership of the Podium Complex, consisting of the bank’s Corporate Center Ortigas, the West Tower, and the Podium Mall. The complex houses BDO’s offices.

BDO’s board approved the purchase on March 25. The value of the transaction was not disclosed by the transacting parties.

Keppel, whose ultimate parent is a company incorporated in Singapore, said the consideration for the deal was arrived at “on a willing-buyer, willing-seller basis, taking into account, among others, the agreed value” of the Podium assets.

It added that the completion of its divestment is subject to the satisfaction of conditions precedent, which includes the required regulatory approvals and the approval of the shareholders of the selling entities.

“Following completion, [SM Keppel Land] will cease to be an associated company of [Keppel],” the company said.

The shares to be sold total 254.31 million common shares — consisting of 217.91 million common shares and 36.4 million redeemable preferred shares — equivalent to 50% of the outstanding capital stock of SM Keppel Land.

Keppel’s board of directors approved the sale of 203.45 million shares, which includes 172.33 million common shares and 21.12 million redeemable preferred shares, effectively divesting its 40% interest in the property.

“This divestment is in line with Keppel’s Vision 2030 asset monetization plans to unlock capital which can be channeled towards new growth opportunities,” the company said.

Opon-KE will be selling 14.46 million shares or a 10% stake to BDO.

BDO said the price per share will be determined by the adjusted net asset value of SM Keppel Land at the deal’s closing and the net of agreed adjustments.

“The transaction is subject to approval by the Bangko Sentral ng Pilipinas and Philippine Competition Commission and customary closing conditions for transactions of this nature,” the company said.

SM Keppel Land is the company engaged in the development, operation, and management of the Podium Complex in Mandaluyong City. The complex is a 140,000-square-meter mixed-use retail and office property formally opened in 2019.

On Monday, Keppel shares fell by 6.67% or 20 centavos to close at P2.80 apiece, while BDO shares declined by 0.39% or 50 centavos to close at P126.50 each. — Adrian H. Halili