SEC approves merger of 5 BDO subsidiaries

MANILA, Philippines—Banco de Oro Unibank has obtained approval from corporate regulators to consolidate five subsidiaries as part of ongoing measures to enhance group-wide operating efficiency.

BDO disclosed to the Philippine Stock Exchange on Wednesday that the Securities and Exchange Commission had approved the merger of wholly-owned subsidiaries BDO Strategic Holdings Inc., Equitable Card Network Inc., EBC Strategic Holdings Corp., BDO Technology Center Inc., and Strategic Property Holdings Inc. BDOSHI will be the surviving corporation in this merger.

“This merger has been undertaken as part of the streamlining of the BDO Group’s organizational structure,” the BDO disclosure said.

“BDO’s investment in its subsidiaries did not increase as a result of this exercise,” the disclosure added.

Equitable Card Network, EBC Strategic Holdings, BDO Technology Center and Strategic Property Holdings all ceased to exist, the bank said.

It was earlier reported that BDO is bracing for a more challenging operating environment in 2012 given lingering external uncertainties and prospects of slower domestic economic growth.

In the first nine months of 2011, BDO booked P7.6 billion in net profit, up by 19 percent year-on-year, on higher loan volume, fee-based earnings and treasury gains. This translated to an annualized return on common equity of 11.8 percent.

BDO, led by the family of tycoon Henry Sy, has over 740 branches and 1,500 automated teller machines in its network. It is the country’s largest bank in terms of assets, hitting P1 trillion in resources.