Security Bank Corp. has obtained approval from the Bangko Sentral ng Pilipinas to acquire 96.42 percent of Premiere Development Bank for P1.3 billion.
In a disclosure to the Philippine Stock Exchange Thursday, the bank said it obtained the go-ahead from the BSP on the equity deal that was signed with PDB in June last year.
Security Bank, the 10th-biggest local bank in assets, bought a controlling stake in the bank from the consortium of New York-based Rohatyn group, and the Puyat-Reyes and Madrigal-Gonzales families.
“Some minority shareholders are included already in the 96.42 percent. We are open to buy the remaining 3.58 percent if they so desire and establish documentation,” Security Bank president Albert Villarosa said Thursday.
Villarosa added that the buyout would become official by February 1, which will be the closing date of the transaction.
“Consolidation should be easy. We have the plans ready and should execute when it becomes official,” he said.
The acquisition is part of Security Bank’s strategic plan to expand its branch network, scale up its loan portfolio and enlarge its customer base.
Premiere Bank has 38 branches, 21 of which are strategically located in Metro Manila where there are restrictions on the establishment of new branches. Other branches are located in Cavite, Laguna, Batangas and Quezon provinces.
The acquisition will increase Security Bank’s branch network by nearly a third to at least 170 branches.
The acquisition will also add about P3 billion to Security Bank’s loan portfolio, which stood at about P84.5 billion as of end-September 2011.
Founded by the late Procopio Reyes in 1960, Premiere Bank started as an institution for small and medium enterprises but has since expanded to consumer finance, factoring of receivables and purchase of contact-to-sell receivables.
Security Bank ended September last year with P196.8 billion in resources, expanding its balance sheet by 36.2 percent from the previous year. It had a return on equity of 20 percent, a level higher than most of its peers.