Quantcast
Latest Stories

BPI in talks to acquire majority stake in PNB

By

The Bank of the Philippine Islands of the Ayala group is in advanced talks to acquire a majority stake in Lucio Tan-led Philippine National Bank in what could be a major banking consolidation that would make the Ayala banking arm as big as Banco de Oro Unibank.

Banking sources confirmed that the Lucio Tan group was in discussion with the Ayalas for the union, which could result in a combined entity with total assets of about P1.2 trillion—about the same size as BDO.

An industry source said the Lucio Tan group’s internal valuation of a consolidated banking arm under PNB was over P100 per share but based on market estimates, the Ayalas and the Lucio Tan group might be able to strike a deal at P96 per share, or at a 14-percent premium to current market prices.

PNB shares closed 11.7 percent higher yesterday at P84.10 per share,  giving it a market capitalization of P49.86 billion. A total of 7.7 million PNB shares valued at P617.5 million changed hands.

The prospective consolidation would bring BPI, currently the third largest bank in terms of consolidated assets at par with BDO. BPI has about P742 billion in resources, while PNB and Allied Bank have P304.32 billion and P176.69 billion, respectively.

A prospective deal between the Ayalas and the LT group is not expected to affect the consolidation of LT group assets into Tanduay Holdings as only a minority stake each in PNB (34.79 percent) and Allied Bank (27.62 percent) has been committed for infusion into Tanduay.

When asked about the matter, a BPI spokesperson said: “No comment.”

Stock analysts said the prospective consolidation was exciting for the banking industry and that a prospective union between BPI and PNB would provide the best fit, giving the Ayala-led bank a significant Chinese-Filipino foothold.

Industry sources said the LT group had likewise explored the possibility of merging with Metropolitan Bank and Trust Co. but the latter was concerned that a union would only cannibalize its market share.

Tan’s daughter Cherry is married to Alfred Ty, the son of Metrobank founder George Ty.

On the other hand, the Ayala group is very aggressive in expanding its core businesses and is likewise diversifying to new areas like infrastructure.

Ahead of a prospective BPI-PNB union, the LT group is also likely to resolve remaining stumbling blocks to the merger between PNB and Allied Bank, including a delayed regulatory approval by UK’s financial regulators. As PNB has operations in Europe, UK approval was likewise required for the PNB-Allied merger to push through.


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: acquisitions , Banking , BPI , Business , Finance , PNB

  • stealth ice

    Is Kapitan angry at tatang that he would let the Castillano acquire his PNB so as to overthrow BDO from being in the top spot? intriguing!!!

    Kapitan must be badly hurt by Tatang. Go Kapitan. I believe in you. I always remember what you said “if you had accomplished all your plans then you had not plan enough”

    Wishing you good health always.

  • RomyLitz

    PHP 49.86 Billion market capitalization of PNB is just a petty 6% of the OFW’s annual remittance (now, at US$ 21 Billion annually). If only the Malacanang will open a new “visionary” department of the government tasked solely to receive or entertain investments from Pinoys in the OFW category to help invest or own a multinational company in the Philippines, it means then that if the united OFWs ( with Malacanang’s blessing and facilitating capability worldwide with the help of the embassies in each country) will save 6%  of their annual remittance, they can buy a multinational company like PNB with possibly a  100% ownership. This is doable with Malacanang’s determination and will to help the OFWs own several multinational companies either 100% or 10% of the ownership.



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

  • DOH asks co-passengers of OFW carrier to test for MERS-CoV
  • ‘Shouldn’t we move?’ Ferry evacuation under scrutiny
  • 5.5-magnitude quake hits Sultan Kudarat
  • Passengers denied chance to escape sinking South Korea ferry
  • Firetruck rams California eatery; 15 injured
  • Sports

  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Federer would skip tennis to be with wife, newborn
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • Business

  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • Technology

  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace