PSE Round-Up: December 17, 2012

PSE Market Summary:

The Philippine Stocks Market slid down by 83.26 to 5,623.85. This is the fourth straight trade that PSE closed lower. Total trades recorded were 27,561 with 50 stocks advances, 116 declines and 50 stocks unchanged.   

LTG Complies with Public Float Requirement

Tangent Holdings Corporation disposed 508,544,100 shares out of its 8,554,862.293 shares in LT Group (PSE:LTG) to effectively increase the public float of the company. LTG has now increased its float from 4.7% to 10.4%.

MWIDE Acquires Property Company

Megawide Construction Corporation (PSE:MWIDE) acquired 100% of the total issued and outstanding capital stock of Altria East Land, Inc. for P53 million. Altria owns properties in Tagaytay, Rizal currently being leased as a pre-cast concrete manufacturing complex. 

PSE Denies Extension Request of PAL, SMP

Philippine Airlines and San Miguel Properties Acknowledged Receipt of Denial letters from PSE of their request for extension to comply for the public float requirement. Under PSE rules, all companies must maintain a public float level of at least 10% and is given until the end of year before being delisted.

PSE Round-Up: December 5, 2012

PSE Market Summary:

The Philippine Stocks Market slid down by 18.56 to close at 5,687.72. Total trades reached 27,339 with 70 stocks advances, 74 declines and 55 remaining unchanged. 

DMC Units Eyes more Nickel Power Mines

The mining unit of DMCI Holdings, Inc. (PSE:DMC) is looking to acquire more nickel mines. DMC currently owns 17% of Toledo Mining Corp and is looking to purchase another 17% more.

SMC to Enter Energy Sector

San Miguel Corporation (PSE:SMC) is looking to expand its business into energy as it participates in a bidding for a $5 billion acquisition of a gas business. The move underscores a push to surpass previous financial performances.

"SB is Philippines' Bank of the Year" - The Banker

Security Bank (PSE:SB) was hailed as the country's bank of the year by The Banker, a well respected banking magazine. The award is given as an annual event to promote industry-wide excellence in global financial institutions.  SB has consistently improved its ROE for the last three years with earnings of P6.7 billion in 2011.

LTG to Partner with Spanish Dairy Producer

LT Group (PSE:LTG) will partner with Grupo Leche Pascual, a spanish company in dairy produce business for the sale of yogurt in the Philippines. The products will be marketed by LTG under ABI Pascual Foods.

STI Issues Cash Dividend

STI Education Systems Holdings, Inc (PSE:STI) declared cash dividend as follows:

cash                                 =                   P.01 per share

ex-date                            =                   Dec. 14, 2012

record date                     =                   Dec. 19, 2012

payment date                  =                   On or before Dec. 28, 2012

PSE Stocks of the Week: The BPI-PNB-ABC Merger

The Philippine Stocks Market reached another new highs last week amid talks of merger between Bank of the Philippine Islands (PSE:BPI) and Philippine National Bank (PSE:PNB). PNB in itself is in the final stages of a merger with Allied Banking Corporation (PSE:ABC) with PNB as the surviving entity. 

Needless to say the market was ecstatic on the news. Financials sub-index alone jumped by 5.08% or 71.55 within a week. The merger, once finalized, will create the biggest bank in terms of asset. BDO Unibank (PSE:BDO) currently hold the distinction with P1.15 trillion. BPI, PNB and ABC's combined assets is estimated at P1.20 trillion. The merger also brings in two big names in business today. Ayala group (PSE:AC) currently own the largest stake in BPI while PNB and ABC are both owned by Lucio Tan's LT group (PSE:LTG). Early reports say that the proposed merger will be done via share swap, which will make LTG the second largest owner of BPI with 20% stake, while AC will own 33%.

For investors, what's important to note is how much will BPI prices the acquisition. LTG eyes the deal at around P95-P96 or 1.8 times PNB's book value of P56. PNB stocks last traded at P84.30 so there's still significant upside for profit. An alternative would be to buy BPI shares, last traded at P92.80. Both parties target to push through with the merger before year ends, so the consolidation would mean higher reported profits for BPI. 

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Disclaimer: This article is solely the opinion of the blogger based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.