PNB, Allied set to merge

Philippine National Bank has taken the first crucial step to merge via an exchange of shares with Allied Bank Corp., in line with plans to finalize the union within the year.

PNB has called for a special stockholders’ meeting on March 6 to approve the amended plan of merger with Allied Bank.

About a third of PNB’s shares are held and traded by the public.

The revised share-swap framework reflects an improvement in the financial standing of PNB since the original plan of merger was hatched in 2008.

Under the revised plan, PNB will issue to Allied Bank shareholders 130 PNB shares for every Allied Bank common share and 22.763 PNB shares for every Allied Bank preferred share held. PNB shares will be issued at P70 per share.

The old merger blueprint called for the swap of 140 PNB shares for each Allied Bank common share and 30.73 PNB shares for each Allied Bank preferred share, with new PNB shares issued at a price of P55 per share.

PNB shares closed at P59 each at the local stock market yesterday, down by 1 percent. This gave the bank a market capitalization of P39.5 billion.

Since the announcement of the plan of merger in 2008, both banks have taken steps to synchronize information technology systems; align products, processes and human resources as well as rationalize branch expansion.

The consummation of this much-delayed union is seen building a stronger platform to offer a wide range of personal and corporate banking products and services.

It will create the country’s fourth largest private domestic bank with a combined distribution network of 646 branches nationwide and combined total assets of P514 billion as of end-September 2011.

In addition, the merged unit associated with taipan Lucio Tan will have the largest international footprint across the Asia-Pacific region, Europe, the Middle East and North America.