Taiwan bank unit in PH to delist shares from PSE

Chinatrust Commercial Bank (Philippines) Inc. has obtained approval from the Bangko Sentral ng Pilipinas to delist from the local stock exchange and bring back full control of its stocks to private hands.

The BSP’s policy-making Monetary Board recently approved the delisting as well as the repurchase of publicly owned shares through a tender offer in accordance with the Philippine Stock Exchange rules, the bank disclosed Tuesday.

By buying back its minority public float, Chinatrust—a subsidiary of Chinatrust Commercial Bank (CTCB), the largest private commercial bank in Taiwan—is thus shelving earlier plans to become a universal bank. Part of the BSP’s requirement to upgrade from a commercial bank into a universal bank is to have a public float of at least 10 percent.

Chinatrust said it believed that given its strong capital position, it could still pursue its strategic growth objectives without being a publicly listed entity or upgrading into a universal bank.

The tender offer will cover about 1.5 million common shares, suggesting that the bank will redeem about P39.21 million worth of outstanding shares.

With a more simplified ownership structure and strong parent bank support, Chinatrust expects to execute its growth strategies faster and focus its resources and attention toward strengthening its foothold in its chosen markets. Likewise cited as priorities are improving profitability through efficient processes and channels, mitigating risk and leveraging on the benefits of its global network.

The intended acquisition of the remaining market float is also seen giving the parent bank better flexibility in coordinating resources across all its subsidiaries “to create operational synergy, implement growth strategies and strengthen brand value.”

Opened as a full-service commercial bank in the latter part of 1995, Chinatrust Philippines has one of the biggest branch networks among foreign banks operating in the country.