Zobels, Gokongweis set final share terms for P32-B merger of banks

BPI and Robinsons Bank logos

MANILA  -Bank of the Philippine Islands’ (BPI) takeover of Robinsons Bank (RBC) could be worth around P32 billion after the groups agreed on the final share issuance terms, which would make the Gokongwei family the second-largest shareholder in the Ayala-led banking giant.

Zobel-led BPI will issue 314 million shares, equivalent to a roughly 6-percent stake, to Gokongwei-led JG Summit Holdings and Robinsons Retail Holdings to acquire the latter’s Robinsons Bank.

“Upon the effectivity of the merger, BPI shall issue to the shareholders of RBC such number of primary BPI common shares and in exchange, BPI will absorb the net assets of RBC,” BPI said in a stock exchange filing on Monday.

At current prices, the shares are worth over P32 billion. BPI, the country’s third-biggest lender, previously said it would issue no more than 318.91 million common shares to the Gokongwei firms.

The acquisition and merger was first approved on Sept. 30, 2022.

READ: PH antitrust regulator clears BPI-Robinsons Bank merger

Last January, Robinsons Retail completed a separate deal to buy a 4.4-percent stake in BPI worth about P20 billion.

The company bought the shares from Arran Investment Pte. Ltd., an affiliate of Singaporean state fund GIC Private Ltd. Arran holds a stake in BPI through convertible preferred shares.

BPI and the Gokongwei Group expect the Robinsons Bank merger to “unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity.”

Robinsons Bank offers various products and services to corporate, commercial and retail clients via its 189 branches and branch-lite units. It has 354 automated teller machines apart from online and mobile banking channels.

Under the deal, BPI will also gain ownership over its 20-percent stake in GoTyme, a Philippine digital bank controlled by the Gokongwei Group and Tyme Group. INQ