JG Summit earns P392-M from BPI dividends

JG Summit [JGS 19.20, down 2.9%; 195% avgVol] [link], the Gokongwei Family’s conglomerate holdco, is set to earn P392 million in dividend income from its 3.58% stake in BPI [BPI 136.00, down 0.5%; 198% avgVol]. JGS acquired this stake as part of the compensation it received for BPI’s acquisition of Robinsons Bank. The BPI dividend is for P2.08/share, payable on June 30. BPI usually declares two dividends per year, one in June and another in December.

MB bottom-line: BPI’s dividends are pretty consistent, so perhaps JGS can expect to bring in P785 million in gross dividend income this year from that merger transaction. That’s pretty good. JGS declared P3,375 million in dividend income for FY24, so this will boost that by 23%, but it’s just a small percentage of JGS’s non-operating revenue, let alone its comprehensive revenue. Still, I’d rather see aging conglomerates convert poorly-positioned assets into strategic holdings like this than GTCAP’s plan of converting cash into poorly-positioned assets. 

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