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September 27, 2022

BDO to convert leasing, finance arm into a holding company as sale fails

BDO Unibank Inc. headed by bankero Nestor Tan is keeping its leasing and finance arm after its supposed sale to new investors that included 8990 Holdings director Luis Yu Jr. and Pacifica Holdings Inc. independent director Vittorio Lim did not materialize.

The Sy-led bank said the sale of BDO Leasing and Finance Inc. (BDOLF) failed after the agreement between BDO, BDO Capital & Investment Corp. with the new investors for the sale of BDOLF lapsed in January last year.

“BDO is now contemplating keeping BDOLF, repurposed as a holding company, for its own investment purpose or, depending on the terms of outstanding offers, pursue the sale of its shares with other prospective buyers,” the bank said.

In January 2020, BDO agreed to sell its 88.54-percent stake to the new investor group including 8990 Holdings director Luis Yu Jr. and Pacifica Holdings Inc. independent director Vittorio Lim, who would each acquire 33 percent.

However, the Securities and Exchange Commission (SEC) suspended the registration of BDOLF as a listed company in February 2020, preventing it from offering shares to the public.

The country’s largest lender contested the suspension order and sought reconsideration with the corporate regulator.

BDO said the agreement with the third party buyers lapsed on January 24, 2021 for failure to comply with the closing conditions on account of the non-resolution by the SEC of BDOLF’s request for reconsideration of SEC’s suspension order.

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