UnionBank, Atram to merge trust units

UnionBank, Atram to merge trust units

/ 02:03 AM November 12, 2024

Union Bank of the Philippines (UnionBank) is set to merge its trust subsidiary with a unit of ATR Asset Management Inc. (Atram) to create a single entity with over P485 billion worth of assets under management and expand the offerings of both companies.

In a stock exchange filing on Monday, the Aboitiz-led bank said it had entered into an investment agreement with the Atram Group to take a 27.5-percent ownership stake in the latter for P300 million.

Existing Atram shareholders will hold the remaining 72.5 percent, UnionBank said.

Article continues after this advertisement

The transaction will consolidate their respective trust subsidiaries, Union Bank Investment Management and Trust Corp. and Atram Trust Corp., with the latter as the surviving entity.

FEATURED STORIES

“This partnership allows us to strengthen our offerings and provide even more tailored services to our customers, especially our larger wealth base as a result of the acquisition of Citibank Philippines’ consumer banking business,” UnionBank president Edwin Bautista said in a statement.

Trust companies act as agents or trustees on behalf of a person or company. Some offer wealth management services, such as that of UnionBank.

Article continues after this advertisement

Atram currently provides access to around 2 million retail investors, mostly through its digital platforms and partnerships.

Article continues after this advertisement

According to Atram CEO Michael Ferrer, their clients would “benefit from an expanded suite of investment solutions, enhancing the value and service we deliver.”

Article continues after this advertisement

Both the merger and UnionBank’s investment would still be subject to regulatory approvals, the bank said. AlphaPrimus Advisors was Atram’s financial advisor, while Exchange Equity Partners was UnionBank’s.

This came after Atram took a 70-percent shareholding in First Metro Asset Management Inc. (Fami) of the Metrobank Group in late October as the Ty family-led firm opted to focus on investment banking.

Article continues after this advertisement

Established in 2013, Fami is the principal distributor and fund manager of First Metro Philippine Equity Exchange Traded Fund Inc., which primarily invests in a basket of stocks that represent a specific index, such as the Philippine Stock Exchange Index.

Atram has over P385 billion of assets under management, ranking fourth among asset and wealth managers in the country.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Analysts have said that Atram’s recent moves would allow it to scale up its business quickly amid increasing competition.

TAGS: Business

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.