PNB, Allied Bank execute merger

MANILA, Philippines—Tycoon Lucio Tan’s banking arms Philippine National Bank and Allied Banking Corp. have executed a much-awaited merger via a share swap deal.

Office-in-charge Omar Byron Mier was appointed the PNB board president of the merged bank, replacing Carlos Pedro who had been on sick leave since suffering a stroke in July last year, the bank disclosed to the Philippine Stock Exchange on Monday.

The merger of PNB and Allied Bank took effect on Feb. 9 (Saturday), a separate disclosure said.  One effect of the merger was that PNB’s public float had been reduced to 18.99 percent from 31.15 percent prior to the merger.

To factor in the wider balance sheet, PNB is moving to amend its charter to increase its authorized capital stock to P70 billion from P50 billion previous to the merger.

The proposed authorized capital–which was approved by the board but still subject to approval by stockholders and the Securities and Exchange Commission–would comprise about 1.75 billion common shares with a par value of P40 per share.