BDO Unibank, Inc.’s board has approved its merger with SM Keppel Land, Inc. (SMKL) as part of its restructuring plans, the banking company said on Monday.
In a regulatory filing, BDO said that it will be the surviving entity following the merger. The transaction is still subject to stockholders’ and regulatory approvals.
The merger will be presented for shareholder approval during the annual shareholders’ meeting on April 19.
“As a result of the merger, the assets, rights, and liabilities of SMKL will accrue to and be owned by BDO as surviving entity. In exchange, common shares of BDO will be issued to the shareholders of SMKL,” the disclosure said.
“In accordance with applicable Bangko Sentral ng Pilipinas rules and regulations, the respective boards of directors of the BDO and SMKL deemed it necessary and advisable to merge the constituent corporations into one, with BDO as the surviving entity,” it added.
According to BDO, the merger will be subject to the approval of the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission.
“BDO will likewise secure a confirmation of non-coverage from compulsory notification from the Philippine Competition Commission since the merger is an internal restructuring. The timetable for implementation of the merger will depend on the timeline of the regulatory approvals,” it said.
The merger comes after BDO’s complete takeover of Keppel Philippines Properties, Inc. and Opon-KE Properties, Inc.’s combined 50% stake in SM Keppel in December of last year.
SMKL is a company engaged in developing, operating, and managing the Podium Complex in Mandaluyong City.
Shares of BDO rose by ten centavos or 0.07% to P144.90 apiece on Monday. — Revin Mikhael D. Ochave