Japan’s Sumitomo Mitsui ups stake in RCBC with P27-B investment

Japanese banking giant Sumitomo Mitsui Banking Corp is investing P27 billion in Yuchengo-led Rizal Commercial Banking Corp (RCBC), upping its stake from 5 percent to 20 percent.

In a stock exchange filing on Thursday, RCBC said the deal will provide needed capital amid its plans to aggressively expand its corporate, consumer and retail businesses.

It would also support RCBC’s digital roadmap. For example, RCBC and Sumitomo will partner to upgrade its 452 branches with “digital technology and data-based sales strategies.”

RCBC said in its filing the sale will involve the sale of 382.1 million shares to Sumitomo at P71 each, a 218 percent premium over the Philippine lender’s price before the deal was announced.

In the disclosure, RCBC said the sale was comprised of 213.44 million treasury shares and 168.62 million primary shares.

RCBC shares ended the morning session up 6.73 percent to P23.80 after jumping as much as 27 percent.