The transaction was valued at PhP48.60 per share in a 1 for 3 rights offer, which means that shareholders (as of record date 14 June 2012) are entitled to buy 1 additional BDO share at said price for every 3 shares that they currently own.
BDO said the offer price is based on the 15-day volume-weighted average price of BDO common shares listed at the Philippine Stock Exchange (PSE) at a discount of 24.9%. The stock rights offer will commence on 18 June 2012 (9AM) and end on 27 June 2012 (12PM).
The fully underwritten transaction will raise around PhP43.5 billion or US$1 billion in additional capital for the Bank using Monday’s weighted average foreign exchange rate of PhP43.479 per US dollar.
The transaction was arranged by Citigroup, Deutsche Bank and JP Morgan as joint international lead managers and underwriters; United Overseas Bank Limited as international co-lead manager and co-lead underwriter; and BDO Capital & Investment Corp. as issue manager and domestic underwriter.
It is intended to support BDO’s medium-term growth objectives and respond to the more stringent Basel III capital requirement as expected to be implemented by the Bangko Sentral ng Pilipinas.