This values Citystate at almost P17 per share, a 185 percent premium over its last closing price of P5.96 per share.
“The acquisition is a strategic investment of the company and represents the company’s first step in implementing its financial business investment strategy,” CSC Holdings told the Hong Kong Stock Exchange.
“It also represents the effort of the group to enter the mainstream financial business world and lays out the business map for the group in Southeast Asia, which has significant development potential,” it added.
Citystate has yet to disclose the deal on the Philippine Stock Exchange. The company’s shares soared over 17 percent to P7 apiece on Monday.
Value justification?
According to CSC, the deal price based on the Citystate’s net asset value of over P1.14 billion as of Dec. 31, 2023.
Factors considered included its thrift bank license and its 34 branches, mainly located in Metro Manila.
CSC is a Hong Kong-incorporated entity with limited liability, listed on the main board of the Hong Kong Stock Exchange. It’s primarily engaged in securities investment, trading, money lending, and securities brokerage.
The transaction is subject to final terms and conditions, CSC said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
