China Bank takes over SME lender
China Bank Corp. of the Sy group has shelled out P1.86 billion to buy all of the shares of Planters Development Bank, sealing its takeover of the country’s leading private development bank and small and medium enterprise (SME) lender.
Of the total purchase price of P1.86 billion for 100 percent of Plantersbank, P1.579 billion was used to acquire the 84.77-percent stake of the Tambunting family and related parties as well as the interest held by Dutch development bank FMO, the bank said Thursday in a disclosure to the Philippine Stock Exchange.
With Plantersbank now part of China Bank group, this banking group has become the fifth largest private universal bank in the country with P410 billion in assets as of end-2013.
As earlier disclosed, the bank said the acquisition of the remaining 15.23 percent common stock for P283.7 million would be done through a tender offer.
Based on audited financial statements as of end-2012, Plantersbank’s equity net of accounting-related adjustments stood at P919 million.
During Plantersbank’s special stockholders’ meeting on Wednesday, Ambassador Jesus Tambunting and Carlos Borromeo were re-elected to the new board.
Tambunting was retained chair while Borromeo was elected president.
Also elected to the Plantersbank board were China Bank representatives: Ricardo Chua as vice chair; Nancy Yang, Alberto Emilio Ramos, Alexander Escucha, Antonio Espedido Jr., and Ramon Zamora, as members; and Roberto Kuan, Alberto Yao, and Margarita San Juan as independent directors. All six directors and three independent directors are also concurrent directors of China Bank Savings.
China Bank closed 2013 with 368 branches with 295 for the main bank.
“The strategic partnership represents opportunities for China Bank to expand its SME portfolio and geographic footprint,” the disclosure said.
Plantersbank is the country’s largest private development bank and leading bank for SMEs with total assets of P54 billion, total loan portfolio of P33 billion, and deposits of P44 billion as of end-June 2013.
