Security Bank acquires Premiere
MANILA, Philippines—(UPDATE) Security Bank Corp. is buying 98 percent of Premiere Development Bank for P1.3 billion from a consortium that includes New York-based Rohatyn group.
The acquisition of the thrift bank is part of Security Bank’s strategic plan to expand its branch network, scale up its loan portfolio and expand its customer base, the bank said in a press statement.
“Combining our people and resources, our two banks will continue to grow and provide the exceptional customer service we’ve always been known for in the banking community,” Security Bank president Alberto Villarosa said.
The transaction was priced at about 1.6 times the book value of Premiere Bank as of end-2010.
Aside from the Rohatyn group, the selling shareholders include the Puyat-Reyes and Madrigal-Gonzales families.
In a separate disclosure to the Philippine Stock Exchange, publicly listed South China Resources Inc. said it would likewise take part in the transaction, having committed to sell its 351,454 shares in Security Bank for P181.75 apiece, or a total of P63.8 million.
Security Bank, the country’s 12th largest bank with assets of about P166 billion as of end-2010, intends to buy out the remaining 2 percent of outstanding shares held by minority shareholders.
“The purchase of Premiere Bank would immediately expand our branch network by 30 percent to 170 branches, and effectively increase our presence and competitive stance in the consumer, small and mid-sized business segments,” Villarosa said.
Premiere Bank has 38 branches, 21 of which are strategically located at Metro Manila where there is a moratorium on the establishment of new branches. Other branches are located at Cavite, Laguna, Batangas and Quezon provinces.
Founded by the late Procopio Reyes in 1960, Premiere Bank started as an institution for small and medium enterprises but had since expanded to consumer finance, factoring of receivables and purchase of contact-to-sell receivables.
The acquisition will add about P3 billion to Security Bank’s loan portfolio, which stood at about P73.3 billion as of end-2010.
Premiere Bank has 20,000 loan customers and 37,000 depositors with an estimated P4.5 billion in deposits.
The transaction is still subject to regulatory approvals, Security Bank told the Philippine Stock Exchange.
Originally posted at 11:44 am | Thursday, June 2nd, 2011