BPI enters 2024 with bank takeover

MANILA, Philippines  -Bank of the Philippine Islands’ (BPI), the country’s third biggest lender, is getting a new bank for the new year as it firms up the takeover date of Robinsons Bank after the Bangko Sentral ng Pilipinas approved the P32-billion merger.

“The merger is expected to take effect on Jan. 1, 2024, subject to the approval of the [Securities and Exchange Commission],” said BPI, which is part of the Zobel family conglomerate Ayala Corp.

BPI earlier said it 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.

READ:  PH antitrust regulator clears BPI-Robinsons Bank merger

“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. The BPI and Robinsons Bank acquisition and merger was first approved on Sept. 30, 2022.

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

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

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.