MANILA, Philippines—The country’s largest lender, Banco de Oro Unibank, has submitted a conditional offer to take over Philippine Bank of Communications, where a controlling stake is currently on the auction block.
PBCom disclosed to the Philippine Stock Exchange on Tuesday that BDO, which is controlled by the family of the Philippines’ wealthiest tycoon Henry Sy, had submitted a proposal to invest in the bank, confirming an item that appeared in news column Biz Buzz on Monday.
In a separate disclosure, however, BDO said its offer to take over the 64-branch PBCom was not “formal.”
“BDO did submit an expression of interest in the transaction subject to further discussions and qualified by certain conditions,” the BDO disclosure said. It did not disclose the conditions it sought.
A group led by former Trade Minister Roberto V. Ongpin also seeks to gain a foothold in the banking business by acquiring a controlling stake in the medium-sized PBCom.
Industry sources said there were at least three offers being evaluated by Macquarie, the financial adviser tapped by the controlling shareholders to bid out a controlling stake in PBCom. The joint sale of a controlling stake in PBCom was part of the commitment made by key shareholders—the Luy, Chung and Nubla families—to the state-owned Philippine Deposit Insurance Corp.
PBCom is on the auction block commanding a floor price of P4.3 billion, or about P25 per common and preferred share. The bank is ranked 22nd among the country’s 38 commercial banks, with assets of around P43.8 billion at end-2010, according to data provided by the Bangko Sentral ng Pilipinas. It has P8.4 billion in net loans and receivables and a deposit base of P27.6 billion.
As for the latest on BDO’s talks with another bank, Asiatrust Development Bank, the BDO disclosure said it was still awaiting clearer regulatory guidelines on how to proceed and that no talks were ongoing at present.
“In the meantime, BDO is exploring other options for expanding its banking business,” it said.