Quantcast
Latest Stories

AEV positions banking portfolio for further growth


MANILA, Philippines–Aboitiz Equity Ventures, Inc. (AEV) has positioned its banking portfolio for further growth with the sale transfer of its shares in City Savings Bank (CitySavings) to Union Bank of the Philippines (UnionBank).

The two banks are AEV subsidiaries, according to a press statement issued by AEV to media companies.

Together with its wholly owned subsidiary Pilmico Foods Corporation, AEV owns 99.54 percent of CitySavings.  AEV is UnionBank’s largest shareholder, with a 45 percent ownership.

In a special meeting held on Tuesday, the AEV Board approved the proposed offer of UnionBank to purchase all of AEV’s shares in CitySavings.

The purchase of 194,371 combined shares of AEV and Pilmico, which will be paid in cash, will be computed at 2.5 times book value as of December 2012, subject to the results of a due diligence review.  Total acquisition value is estimated at Php 5.7 billion.

The planned acquisition is also conditional upon UnionBank’s obtaining the necessary Monetary Board approval from Bangko Sentral ng Pilipinas.

AEV President & CEO Erramon Aboitiz said, “We believe very strongly that repositioning our financial services portfolio under UnionBank is the right strategic move to optimize value and growth opportunities.  We envision UnionBank and CitySavings complementing each other’s management strengths, augmenting technological capabilities, and leveraging on each other’s financial capabilities.”

For his part, UnionBank Chairman & CEO Justo Ortiz said, “Our acquisition of CitySavings is aligned with UnionBank’s long-term strategy of building a great retail bank. CitySavings has a business model that gives us a strategic opportunity to expand our customer franchise, and an existing management team we have full confidence in.”

After the acquisition, CitySavings will remain as a separate corporate entity, keeping its company name as well as its brand identity of simple and straightforward banking.

CitySavings President & CEO Mikel Aboitiz said, “We are very excited about this development. Increasing our strategic cooperation with UnionBank and combining our unique strengths will enable us to not only accelerate our plans to be the preferred teacher bank nationwide but also provide the next growth leg by expanding into broader civil servant and payroll loans market segments.”


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Aboitiz Equity Ventures , banking portfolio , Business



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • 22 houses destroyed, 3 hurt as violent wind storm hits village
  • 242 out of 438 pass board tests for chemical engineers
  • Reckless driver endangered lives of Aquino, entourage–report
  • 5 OFWs from Negros quarantined for MERS-CoV tests
  • Release of village chief’s truck caught carrying illegal logs slammed
  • Sports

  • Alaska takes quarterfinals opener over San Mig Coffee
  • Jackson finds second wind to push Meralco past Rain or Shine
  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Oil prices to go up on supply concerns, optimism on US rebound
  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • QC woman who flew in from Middle East tests negative for MERS-CoV
  • DFA, DOH urge OFWs not to panic over MERS-Cov
  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Marketplace