KUALA LUMPUR:  Government investment arm Khazanah Nasional Bhd has purchased a 2% stake in the Philippine’s BDO Unibank from SM Investments Corp.

In a disclosure to the Philippine Stock Exchange (PSE), diversified SM Investments said its subsidiary Multi-Realty Development Corp sold the stake to Khazanah subsidiary Pulau Kaca Investments Ltd.

SM Investments did not disclose how much Khazanah paid for the stake.

“It is a reflection of the bank’s potential given its industry-leading business franchise, strong balance sheet, and good corporate governance. The entry of Khazanah is seen to further strengthen the bank’s institutional shareholder base.

“It is also an affirmation of the attractiveness of the Philippines as an investment destination given its strong growth and sound macroeconomic fundamentals,” SM Investment said.

Calculations by The Edge Financial Daily showed that the 2% BDO Unibank stake comprises about 70 million shares.

At BDO Unibank’s closing share price of 109.4 Philippine pesos (RM8.56) yesterday, the stake was worth 7.7 billion pesos.

The figure is not far from estimates indicated by media reports in the Philippines.

According to ABS-CBN News, COL Financial said based on the PSE’s end-of-day market report, the sale was conducted at 104 pesos a share for a total of 7.45 billion pesos.

SM Investments is a leading conglomerate in the Philippines with substantial interests in the retail, banking, and property development sectors.

Earlier this year, Khazanah made a foray into the Philippines by acquiring an 8% stake in real-estate developer 8990 Holdings Inc.

It was reported that 8990 Holdings caters to the low-income groups in Cebu, Davao, Iloilo, Cavite and Pampanga.

This article first appeared in The Edge Financial Daily, on December 24, 2014.