LTG buys 30.5% stake in PNB
Tycoon Lucio Tan has started the consolidation of his banking units into holding firm LT Group Inc. (LTG) with the purchase of a 30.5-percent stake in Philippine National Bank, the surviving entity in the merger with Allied Banking Corp.
In a disclosure to the Philippine Stock Exchange on Tuesday, LTG said it had acquired seven companies that owned a combined 22.72 percent stake in PNB-Allied Bank, “effectively setting in motion the consolidation of the banks in LTG.”
The seven companies are Donfar Management Ltd., Fast Return Enterprises Ltd., Fragile Touch Investments Ltd., Mavelstone International Ltd., Uttermost Success Ltd., True Success Profits Ltd. and Key Landmark Investments Inc.
Also, LTG said it would acquire additional indirect ownership in PNB through investments in four companies owning a combined 7.77-percent stake in the merged bank: Merit Holdings & Equities Corp., Ivory Holdings Corp., Leadway Holdings Inc. and Dunmore Development Corp.
The four companies, however, still have to jack up their authorized capital stocks to accommodate the investment of LTG. The group said in the disclosure that these companies were still awaiting the Securities and Exchange Commission’s approval.
PNB and Allied Banking have consummated their merger via a share swap deal effective Feb. 9, with PNB as the surviving entity. The merger resulted in the reduction in PNB’s public float to 18.99 percent from 31.15 percent.
Office-in-charge Omar Byron Mier was appointed president of the merged bank, replacing Carlos Pedrosa who had been on sick leave since suffering a stroke in July last year.
To factor in the wider balance sheet brought about by the merger with Allied Bank, PNB is moving to amend its charter to increase its authorized capital stock to P70 billion from P50 billion. The proposed authorized capital—which was approved by the board but still subject to the approval of its stockholders and the Securities and Exchange Commission—would be composed of about 1.75 billion common shares with a par value of P40 per share.
While the legal merger has been executed, the completion of integration will take about 18 to 24 months. PNB-Allied Bank has combined assets of about P550 billion to 560 billion and 671 branches. It also enjoys the largest overseas footprint with about 115-120 offshore units.