Allied stockholders to get new PNB shares at P70 each
Part of merger to create country’s 4th biggest bank
Taipan Lucio Tan-led Philippine National Bank plans to offer new shares to all stockholders of Allied Bank at P70 a piece pursuant to the merger between the two banks through a share-swap arrangement.
PNB plans to offer 423.96 million common shares worth a total P29.68 billion to Allied Bank shareholders, based on the bank’s application for registration of securities at the Securities and Exchange Commission.
The offer was based on the exchange ratio of 130 PNB common shares for each Allied Bank common share and 22.763 PNB common shares for each Allied Bank preferred share.
As a result of the merger, PNB will have a combined outstanding capital stock of 1.09 billion common shares, of which 423.96 million new common shares are issued to Allied Bank stockholders with an issue value of P29.68 billion.
An application to list the new shares is expected to be submitted to the Philippine Stock Exchange before the end of this month.
While PNB and Allied Bank executed their merger deal last February, the offer will complete the consolidation of shares into PNB, which will be the surviving bank.
“The merger marks a special milestone for both PNB and Allied Bank. The synergies arising from the broadened network, diversified deposit base and improved scale will provide a compelling value proposition for their various stakeholders,” PNB said in the regulatory filing.
“In creating the country’s fourth largest privately owned bank, the merged bank will be in a prime position to improve customer experience and lead industry innovation. Moreover, it will yield substantial benefits for its customers and provide more opportunities for its employees,” it added.
While there are no cash proceeds from the merger, it is expected to result in revenue enhancements and cost savings from branch re-engineering, economies of scale, consolidation of overlapping systems and corporate indirect overheads, realignment of front offices and optimization of back office processing and support functions.
PNB and Allied Bank started their legal merger last February but full integration is estimated to be completed in about 18 months.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
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