Dy family-led Security Bank listed Tuesday new shares issued to Japanese banking giant The Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU), which infused P36.9 billion in fresh capital to the local bank in exchange for a 20-percent stake.
Security Bank listed on the Philippine Stock Exchange (PSE) 150.71 million new common shares issued to BTMU last April 1. The listing brought Security Bank’s total listed stock to 753.54 million common shares. Based on the bank’s trading price, its market capitalization—or how much the investor market values the bank—at P150 billion (equivalent to $3.2 billion).
The deal also beefed up Security Bank’s shareholders’ capital to P92.9 billion, the fifth biggest among private domestic universal banks in the country.
“We thank the Bangko Sentral ng Pilipinas and the Philippine Stock Exchange for their vital support of the Security Bank-BTMU strategic partnership. The partnership gives Security Bank—as an equity affiliate of BTMU— additional capabilities to service key critical requirements of our economy. These capabilities are in the areas of infrastructure and project finance, retail finance, international banking and wealth management. BTMU’s parent, Mitsubishi UFJ Financial Group (MUFG), is one of the world’s largest and most diversified financial groups with core strengths in such areas,” said Security Bank chair Alberto Villarosa said.
Following the partnership, BTMU became the second-largest shareholder of Security Bank while the Dy retained majority voting control. The equity investment is to-date the largest foreign direct investment in a Philippine
financial institution. The Security Bank-BTMU transaction was consummated in less than six months since the deal was signed last Jan. 14. The transaction received regulatory approval on Feb. 24 and was completed on April 1.
Key officials of the Bangko Sentral ng Pilipinas (BSP) and the PSE graced the listing ceremonies, including BSP Governor Amando Tetangco Jr., PSE chair Jose Pardo and PSE president Hans Sicat. Security Bank was represented by chair Villarosa, vice chair Paul Ung, director Takayoshi Futae and president Alfonso Salcedo Jr. Doris Dumlao-Abadilla