BDO to bid for Export & Industry Bank
MANILA, Philippines - After a failed takeover attempt, BDO, the country's largest lender, said it will join in the bidding for Export and Industry Bank (EIB) set for October 18.
BDO chairperson Teresita Sy-Coson in a chance interview with reporters expressed interest in next month's auction, "Yes, we will. We still have the same terms."
Earlier, BDO's talks for the purchase of Export and Industry Bank were scuttled by legal questions and strict terms by regulators.
The Philippine Deposit and Insurance Corp. (PDIC) announced two separate biddings involving EIB, one for the bank's commercial banking license, and the other, for its branches and other assets.
Regulators said prudence dictates selling EIB's assets and commercial banking license separetely, as this could help give more returns.
Export and Industry Bank was ordered closed last April due to insolvency.
It has 50 branches nationwide with a substantial depositor base. The winning bidder will also assets will assume the EIB's liabilities.
PDIC said there was significant interest in EIB among existing players in the banking sector. Several commercial banks have submitted applications to participate in the bidding for EIB's assets on October 18.
The prequalified bidders have been told to submit their proposed rehabilitation plans before the bidding date. The rehabilitation plans must provide details on capital strengthening, liquidity, sustainability and governance of the bank.