BPI merges with Gokongwei-led bank
The merger of Ayala-led Bank of the Philippine Islands (BPI) and Robinsons Bank Corp. (RBC) of the Gokongweis is targeted to be completed before the end of next year.
In a disclosure on Friday, the respective boards of directors of BPI, RBC, Robinsons Retail Holdings Inc. (RRHI) and JG Summit Capital Services Corp. (JG Capital) greenlighted the BPI-RBC merger, with BPI as the surviving entity.
The transaction is subject to shareholders and regulatory approvals from the Philippine Competition Commission, the Bangko Sentral ng Pilipinas, the Philippine Deposit Insurance Corp. and the Securities and Exchange Commission.
RBC shareholders RRHI and JG Capital will hold about 6 percent of BPI’s capital stock upon the effectivity of the merger. They currently hold 99.9984 percent of the outstanding capital stock of RBC.
In relation to this, BPI also disclosed its plan to increase its authorized capital stock by P4 billion to P54.6 billion, which will be divided into 5.4 million common stocks and 60 million preferred stocks.
The transaction is anticipated to “unlock various synergies across several products and service platforms and expand the customer and deposit base of both banks through the merged entity.”
“At the same time, by capitalizing on BPI’s expertise and network, the merger will lead to enhancement of the overall banking experience of RBC customers,” the listed bank added.
As of end-June, RBC and BPI have total assets of P175.9 billion and P2.46 trillion, respectively.
“Together, we aim to maintain quality banking services and offer additional best-in-class and innovative products to our expanded client base,” said Jose Teodoro Limcaoco, president and CEO of BPI.
Elfren Antonio Sarte, president and CEO of RBC, meanwhile, said: “We are excited for the possibilities that this merger will unlock given the unique position we are in that will allow us to leverage on the ecosystems of two of the largest conglomerates in the country.”
The RBC official said they would “work closely with BPI in the coming months to ensure proper integration of the two organizations.” INQ
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