China Bank Corp. completes takeover of Planters Bank
MANILA, Philippines — SM Group-led China Bank Corp. has sealed its takeover of Planters Bank, forking out P1.86 billion to buy all shares in the small and medium enterprise (SME) lender.
Out of the total purchase price of P1.86 billion for 100 percent of Planters Bank, China Bank settled P1.579 billion for the 84.77 percent capital stock owned by the controlling group, the Tambunting family and related parties as well as that owned by Dutch development bank FMO.
In a disclosure to the Philippine Stock Exchange on Thursday, the bank said the acquisition of the remaining 15.23 percent common stock for P283.7 million would be through a tender offer.
Based on audited financial statements as of end-2012, Plantersbank equity net of accounting-related adjustments stood at P919 million.
At the ensuing special stockholders’ meeting on Wednesday, Ambassador Jesus Tambunting and Carlos Borromeo were re-elected to the new Plantersbank board. Ambassador Tambunting was elected chairman and Borromeo as president.
Also elected to the Plantersbank board were China Bank representatives: Ricardo Chua as vice chairman; Nancy Yang, Alberto Emilio Ramos, Alexander Escucha, Antonio Espedido Jr., and Ramon Zamora, as members; and Roberto Kuan, Alberto Yao, and Margarita San Juan as independent directors. All six directors and three independent directors are also directors of China Bank Savings.
With Plantersbank now part of the China Bank Group, China Bank has become the fifth largest private universal bank in the country with P410 billion in assets as of Sept. 30, 2013. It closed 2013 with 368 branches, 295 for the main bank and 73 for the savings bank.
With the addition of Plantersbank’s 78 branches and two unopened licenses, the combined branch network is now 448 branches—well over the 400 branch network target of China Bank for 2014.
“The strategic partnership represents opportunities for China Bank to expand its SME portfolio and geographic footprint,” the disclosure said.
Plantersbank is the country’s largest private development bank and leading bank for SMEs with total assets of P54 billion, total loan portfolio of P33 billion, and deposits of P44 billion as of June 30, 2013.
“An integration task force has been formed to identify and capture the significant growth opportunities and to make the most of the combined strengths of China Bank, China Bank Savings, and Plantersbank,” the disclosure said.
The China Bank Group includes China Bank, China Bank Savings, Unity Bank, China Bank Insurance Brokers Inc., and bancassurance affiliate Manulife China Bank Life Assurance Corp.
China Bank is also preparing for the tender offer to the shareholders of the remaining 15.23 percent Plantersbank common stock, which includes ADB, Korea Development Bank, DBP, Landbank, and IFC.
The Investment & Capital Corporation of the Philippines (ICCP) acted as the exclusive financial adviser to Plantersbank for the transaction.
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