Union Bank of the Philippines, a unit of Aboitiz Equity Ventures, has obtained the Bangko Sentral ng Pilipinas’ approval to acquire Cebu-based thrift bank City Savings Bank for P5.728 billion.
The acquisition of the thrift bank by the Aboitiz group was in line with AEV’s plan to consolidate all its banking interests.
AEV told the Philippine Stock Exchange on Monday that after the BSP approved the transaction, the final terms and conditions of the sale were finalized.
Union Bank acquired 99.54 percent of CitySavings, along with its 32 branches, from parent conglomerate AEV and Pilmico Foods Corp. AEV itself owned 59.4 percent of CitySavings’ stocks while 40 percent was sold by Pilmico.
After the acquisition, CitySavings is expected to remain a separate corporate entity, keeping its company name as well as its brand identity of “simple and straightforward banking.”
Union Bank bought the combined 194,371 shares of AEV and Pilmico in CitySavings at 2.5 times the book value as of end-2012.
The acquisition of CitySavings is seen to boost Union Bank’s consumer-based portfolio.
Established in 1966, CitySavings has over 300 employees, a stockholders equity of over P1 billion and total resources of over P9 billion, based on the bank’s website. Doris C. Dumlao