THE RCBC Plaza. INQUIRER FILE PHOTO
MANILA, Philippines – The Yuchengco-led Rizal Commercial Banking Corp. has entered into a deal to sell the banking group’s 89 percent stake in the shell company of credit card issuer Bankard Inc. to a new investor represented by the trust unit of Philippine Business Bank.
Trading on Bankard was halted on Monday until 10 a.m. following the disclosure to the Philippine Stock Exchange of this buyout, which opens the infusion or backdoor-listing of a new business into the company.
Bankard and RCBC separately disclosed the approval by RCBC’s board of the sale of the group’s 89 percent interest in the shell company of Bankard. Closing of the transaction is subject to certain conditions, including regulatory approvals.
As part of the conditions for the sale, all existing credit card operation of Bankard will be absorbed by RCBC, through itself or an affiliate, according to the disclosure.
“RCBC expects to continue to operate the current credit card-related business of Bankard Inc. No disruption on operations is expected from the above-disclosed transaction,” it said.