TYCOON Lucio Tan’s banking arm, Philippine National Bank, sizzled at the stock market Tuesday, unscathed by the profit-taking that bludgeoned the market. Could there be a juicy story behind its 10.6-percent surge to P67.50 a share, which is now nearing the 52-week high of P74.50 seen when the market last peaked in November?
The market was abuzz with two possible “angles.” The first is a speculative play on the potential price of a share-swap deal with affiliate Allied Bank, which will soon be taken over by PNB. Pundits are now talking about the share-swap deal being valued for at least P80 a share, or twice the ratio of the bank’s book value of P50.5 each. Note that in 2008 when the PNB-Allied Bank merger was first agreed upon, PNB shares were supposed to be issued at only P55 a share. But PNB has become more “exciting” since then.
Asked about this, PNB president Eugene Acevedo said he was “not aware of anything exciting except the execution of our strategy.” But he said PNB indeed was “still way undervalued.” Asked about the rumored revaluation of the share-swap deal at P80 a share, Acevedo said: “Wow, they know something we don’t.” He said it was too early to talk about such deal as regulatory approvals would have to be obtained first.
The second “angle” is that a new foreign strategic investor (a Chinese bank) may buy into the bank. This theory coincided with the Kapitan’s current trip to China. So whether the Kapitan will bring in new Chinese money into PNB remains a theory.FYI for related information on the new real estate law, RA 9646, please proceed to www.RA9646.com, the online repository of updated information on Real Estate Service Act of 2009 (RESA).
source: Philippine Daily Inquirer, April 12 2011
