MB okays Chinabank acquisition of Plantersbank
MANILA - The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), has approved China Banking Corp.’s acquisition of Planters Development Bank.
In a disclosure to the Philippine Stock Exchange, Chinabank senior vice president Alexander Escucha said the MB has cleared their purchase of 100 percent of outstanding subscribed capital stock of Plantersbank.
The MB has also given its go-signal for the Sy-led Chinabank to proceed with the acquisition of the remaining 13.59 percent of the outstanding capital stock of Plantersbank at substantially the same terms and conditions as indicated in the share purchase agreement by way of a voluntary tender offer.
The tender offer period will be carried out on June 16 to Aug. 15, acceptance of shares tendered on Aug. 18-22 and settlement period on Aug. 25-29, 2014.
Chinabank acquired Plantersbank to strengthen its presence and support to the SME sector.
The Chinabank Group now has 450 branches to date (299 Chinabank, 73 Chinabank Savings and 78 Plantersbank).
The bank is also implementing a new core banking system for roll-out in the last quarter of the year.
Chinabank is the last major bank to raise capital in recent years. Since the start of its branch expansion program in 2006, Chinabank has more than doubled its asset size, market reach, and branch network without having to go back to its shareholders for additional capital, until this years’ stock rights offering.
It is the country’s first privately-owned local commercial bank, serving the banking needs of the corporate, commercial, and retail markets since 1920.
Aside from organic growth, Chinabank enters into strategic alliances to expand and strengthen its operations.
Chinabank is and now the fifth largest universal bank by market capitalization.