Photo from www.chinabank.ph
MANILA, Philippines—Tycoon Henry Sy-led China Banking Corp. is making a tender offer to acquire the stake held by the minority stockholders of Planters Development Bank as the Bangko Sentral ng Pilipinas approved the merger of the two banks.
In a disclosure to the Philippine Stock Exchange on Thursday, China Bank said the BSP’s policy-making Monetary Board had given its approval in principle to the consolidation of Plantersbank into either China Bank or its thrift banking unit China Bank Savings within three years.
The first stage leading to the merger is the acquisition by China Bank of 84.77 percent of the capital stock of Plantersbank from the controlling stockholders led by the Tambunting family. This acquisition is subject to certain requirements, including the execution of relevant documents and approval of regulatory offices.
China Bank struck a deal last September to acquire a controlling stake in Plantersbank, which is focused on small and medium enterprise lending.
Of the controlling stake ceded to China Bank, 67.13 percent was held by the Tambunting families and 17.67 percent was held by Dutch development bank FMO.
Upon the execution of the share purchase agreement, China Bank said it would proceed with the acquisition, via voluntary tender offer, of the remaining 15.23 percent of the outstanding capital stock of Plantersbank at the same terms and conditions that covered the deal with the controlling shareholders.
China Bank expects its takeover of Plantersbank to boost efforts to grow its middle market/SME portfolio.