China Bank buys more shares of Plantersbank
Sy-led China Banking Corp. is set to buy additional shares in Planters Development Bank from a minority stockholder through a negotiated sale, in line with the former’s plan to acquire as much as 100 percent of the country’s leading private development bank and small and medium enterprise lender.
China Bank on Thursday disclosed to the Philippine Stock Exchange that its board had approved the acquisition of another 1.96 million shares of Plantersbank, which were beneficially owned by Capital Shares & Investment Corp. but still under the name of Asian Development Bank.
After this acquisition, subject to the execution of the documents and approval by regulatory offices, China Bank’s stake in Plantersbank will increase to 86.41 percent from 84.77 percent, the bank said in the disclosure said.
The bank’s board had also approved and authorized the acquisition of the remaining 13.59 percent shares of Plantersbank via a tender offer at the same terms and conditions as indicated in the share purchase agreement between China Bank and Plantersbank’s former controlling stakeholders, the Tambunting family and related parties.
Other minority shareholders in Plantersbank, whose shares China Bank is offering to buy, include Korea Development Bank, Development Bank of the Philippines, Land Bank of the Philippines and International Finance Corp.
China Bank has earmarked P1.86 billion to buy all shares of Planters Bank, out of which P1.579 billion had been paid in settlement of the 84.77 percent capital stock owned by the Tambunting family, related parties and the stake held by Dutch development bank FMO.
The acquisition made the China Bank group the fifth biggest private universal bank in the country with P410 billion in assets as of the end of 2013.
China Bank closed 2013 with 368 branches, 295 for the main bank and 73 for the savings bank. With the addition of Plantersbank’s 78 branches and license to open two new branches, the combined branch network is seen to reach 448 branches, well over the 400-branch network target of China Bank for 2014.
