Retailer completes deal to buy stake in PBCom

Retailer Lucio Co has consummated a P5.97-billion deal to buy into commercial bank Philippine Bank of Communications, boosting and diversifying the bank’s shareholder base.

PBCom has signed the subscription agreement with Co’s holding company P.G. Holdings Inc. for the purchase of 181.08 million common shares at P33 each, the bank disclosed to the Philippine Stock Exchange (PSE) yesterday. This represents an interest of about 37.67 percent in the bank.

The agreement is subject to the approval of the Bangko Sentral ng Pilipinas (BSP), the disclosure added. PBCom’s board last month accepted Co’s offer to invest in the bank through his delegated entity, Union Equities Inc., to subscribe to 181.08 million common shares at P33 apiece.

Apart from flagship Puregold Price Club, the country’s second-largest retailing firm, Co has interests in energy, liquor distribution, pharmacy and construction/hardware materials retailing, commercial real estate development, oil storage and oil/mineral exploration businesses.

Co’s retail network is seen as a strong complement to PBCom’s expansion efforts while the businessman’s focus on the small business segment is likewise seen well-aligned with the bank’s bid to grow its small and medium enterprise business.

In recent months, PBCom has expanded its distribution network to 72 branches, opening new offices in Baguio, Bonifacio Global City, Cabanatuan, Calamba, Cauayan (Isabela), Cebu, Dumaguete and Sta. Rosa, Laguna. The bank has signed agreements to acquire two rural banks: Rural Bank of Nagcarlan and Banco Dipolog Inc., which have a combined network of 19 branches.

As of end-March, PBCom had total resources of P56.81 billion. Its capital base stood at P3.74 billion. Total loan portfolio amounted to P26.65 billion while deposit base amounted to P48.29 billion.