Security Bank sells stake in property company for P1.6B

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SECURITY Bank Corp. is selling a 51.81-percent stake in its real estate joint venture with a Singaporean partner to focus on its core business.

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Its board of directors on Wednesday approved the disposal of 10.105 million shares in
Security Land Corp., the bank said in a disclosure to the stock exchange. The price was set at P1.6 billion, or P158.325 per share.

The buyers of Security Bank’s SLC stake were Keyland Corp., Adelantado Corp. and Blue Sphere Properties Inc.

By disposing of its interest in the joint venture, Security Bank will be able “to focus on its core business of banking.”

“The decision to sell our stake in Security Land Corp. was made for us to have a better focus on the three pillars of our business: wholesale Banking, financial markets and retail banking. We expect to close the transaction before the end of 2015,” Security Bank

President and Chief Executive Officer Alfonso L. Salcedo, Jr. said in a statement.
The share sale is expected to close on December 15, with the buyers paying in cash.

Incorporated in July 1995, SLC was a joint venture in real estate investments among Security Bank, a local partner and a Singaporean company.

In the first nine months of the year, Security Bank saw its net income drop to P6.1 billion from P6.428 billion a year earlier on the back of lower trading gains.

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