Assets that have grown in value while shareholders waited
After three years of regulatory waiting, AbaCore Capital Holdings has received SEC clearance to distribute over P418 million in dividends — both property and cash — originally promised to shareholders in June 2022. The delay, long enough for the underlying asset to appreciate by roughly 12 percent, speaks to the slow but persistent machinery of corporate governance and regulatory compliance. In the end, patience may have quietly rewarded those who held on, even as the market greeted the news with a modest decline.
- Shareholders have waited three full years for dividends declared in June 2022, a delay that tested confidence in AbaCore's ability to deliver on its commitments.
- The SEC's approval unlocks P376.73 million in property dividends and P41.86 million in cash — a combined payout exceeding P418 million now within reach.
- Pride's book value rose from P360.98 to P405.17 per share during the wait, meaning the assets shareholders are finally receiving are worth more than when they were promised.
- Full distribution still hinges on tax settlement and a BIR Certificate Authorizing Registration, leaving payment dates unset despite the regulatory breakthrough.
- The market responded with a 3.37 percent drop in AbaCore shares on Tuesday, closing at P0.43 — a subdued reaction to news three years in the making.
AbaCore Capital Holdings cleared a long-standing regulatory obstacle on Tuesday when the Securities and Exchange Commission approved the distribution of dividends that had been declared in June 2022 but frozen in the approval process ever since.
The payout consists of P376.73 million in property dividends — specifically 3.76 million common shares in wholly owned subsidiary Philippine Regional Investment Development Corp. (Pride) — alongside P41.86 million in cash to cover fractional share settlements for shareholders of record as of June 28, 2022.
One detail sharpens the story: Pride's book value grew from P360.98 to P405.17 per share between the original declaration and the end of 2023, a roughly 12 percent gain. Shareholders, despite the long wait, are set to receive assets that have quietly appreciated in value.
Chairman and President Antonio Victoriano Gregorio III called the approval a reflection of the company's commitment to shareholders, pointing to Pride's rising book value as evidence of tangible investment returns.
The road to actual payment is not yet complete. AbaCore must still settle applicable taxes and secure a Certificate Authorizing Registration from the Bureau of Internal Revenue before firm distribution dates can be announced. In the meantime, the market's reaction was restrained — AbaCore shares slipped 3.37 percent on Tuesday to close at P0.43, a quiet end to a day that marked, at least on paper, the resolution of a three-year wait.
AbaCore Capital Holdings Inc. cleared a regulatory hurdle on Tuesday that had blocked shareholder payouts for three years. The Securities and Exchange Commission granted approval for the company to distribute property and cash dividends that were declared back in June 2022 but had been held up in the approval process ever since.
The numbers are substantial. Shareholders will receive property dividends valued at P376.73 million, along with P41.86 million in cash. The property portion consists of 3.76 million common shares in AbaCore's wholly owned subsidiary, Philippine Regional Investment Development Corp., or Pride, each carrying a par value of P100. The cash component will be used to settle fractional shares that result from how the property dividend gets divided among shareholders of record as of June 28, 2022.
What makes the timing noteworthy is the movement in Pride's underlying value during the three-year wait. When AbaCore declared these dividends in mid-2022, Pride's book value stood at P360.98 per share. By the end of 2023, that figure had climbed to P405.17 per share—a gain of roughly 12 percent. That appreciation means shareholders are receiving assets that have grown in value since the original declaration, even as they waited for regulatory clearance.
Chairman and President Antonio Victoriano Gregorio III framed the approval as validation of the company's commitment to its shareholders. "This development reflects AbaCore's steadfast commitment to fulfilling our obligations to shareholders and delivering tangible value from our investments," he said in a statement. He added that the combination of SEC approval and Pride's rising book value positioned the company to strengthen shareholder confidence and maintain growth momentum.
The path to actual payment remains incomplete. AbaCore still needs to settle applicable taxes and obtain a Certificate Authorizing Registration from the Bureau of Internal Revenue before it can set firm payment and distribution dates. Once those final regulatory steps are cleared, the company will release the cash and issue certificates representing the Pride shares to entitled shareholders.
The market's reaction to the news was muted. AbaCore shares fell 3.37 percent on Tuesday, closing at P0.43 each. Whether that decline reflected profit-taking, broader market sentiment, or something else about the timing remains unclear. What is clear is that after three years of waiting, shareholders are finally positioned to receive what was promised to them in the summer of 2022.
Citas Notables
This development reflects AbaCore's steadfast commitment to fulfilling our obligations to shareholders and delivering tangible value from our investments.— Antonio Victoriano Gregorio III, AbaCore Chairman and President
La Conversación del Hearth Otra perspectiva de la historia
Why did it take three years for the SEC to approve something that was already declared?
The source doesn't specify the exact reason for the delay. It just says the approval came last week after the declaration in June 2022. Regulatory processes can move slowly, especially for complex transactions involving subsidiary shares.
So shareholders have been waiting since 2022 with no payout?
Yes. They were shareholders of record as of June 28, 2022, but couldn't receive their dividends until this week's SEC approval. That's a long hold.
The subsidiary's book value went up during that time. Did that help or hurt shareholders?
It helped them. Pride's shares were worth P360.98 when declared, now P405.17. So they're getting more valuable assets than originally promised, even though they waited.
What still needs to happen before they actually get paid?
Tax settlement and a certificate from the Bureau of Internal Revenue. Once those are done, AbaCore sets payment dates and distributes the cash and share certificates.
The stock dropped on the news. That's unusual for a dividend approval.
It is. You'd normally expect a positive reaction. The 3.37 percent decline could be profit-taking, or it could signal that investors had already priced in the approval, or something else entirely. The source doesn't explain it.