UCPB Savings up for grabs; Landbank to raise P2.4B

UCPB Savings

MANILA, Philippines — State-run Land Bank of the Philippines (Landbank) is eyeing to raise at least P2.39 billion from the sale of UCPB Savings Bank Inc., years after its merger with United Coconut Planters Bank.

Landbank is inviting potential buyers to the negotiated sale of nearly 7 million common shares in UCPB Savings for a minimum price of P341.14 per share. That is equivalent to 97.55 percent of the total outstanding capital stock of the savings bank.

Under the procurement law, a negotiated sale is another way of selling an asset if public biddings fail.

Last January, Landbank issued an invitation to a public bidding for UCPB Savings. But while there were registered bidders, a source told the Inquirer that the public bidding had failed. Landbank did not receive any bid on the day of the auction.

In an advisory on Wednesday, Landbank said interested buyers in the negotiated sale have until March 24 to send their letters of intent. The common shares will be offered on a “cash” and “as-is-where-is” basis, meaning the buyer must accept UCPB Savings in its current condition and financial health.

Prequalification

While this is a negotiated sale, another Landbank source explained that it would still be a “competitive” process as takeover proposals were being solicited publicly. However, the government will still screen the interested buyers and subject them to prequalification requirements.

READ: BSP encourages bigger, stronger PH banks via mergers

Latest available figures from the Commission on Audit showed UCPB Savings had posted a net profit of P34.18 million in 2023, down by 9 percent. But its total assets had grown by more than 3 percent to P17.6 billion.

By the end of 2023, the savings bank operated 49 branches with 10 branch-lite units and four lending offices. The company had 698 employees at the time.

President Marcos approved the privatization of UCPB Savings through Memorandum Order No. 28, issued in August 2024. The domestic savings bank became a subsidiary of Landbank following its merger with UCPB in 2022.

READ: Landbank-UCPB merger takes effect on March 1, 2022

The privatization stems from Landbank’s capacity to offer similar banking services to those of UCPB Savings. Landbank president and CEO Lynette Ortiz had called it “a strategic initiative designed to improve operational efficiency and service quality.”

Under the terms of the negotiated sale, Landbank will only accept offers from prequalified buyers at the minimum price, or higher.