BPI, Robinsons Bank merger gets shareholders’ approval

The proposed merger between the Bank of the Bank of the Philippine Islands (BPI) and Gokongwei-led Robinsons Bank Corporation has secured the go signal from the Ayala-led bank’s shareholders.

In a disclosure to the Philippine Stock Exchange on Tuesday, BPI said it held a special stockholders’ meeting on January 17 to secure the shareholders’ approval on the merger between the two lenders, with BPI as the surviving entity, subject to regulatory approvals.

“The proposed merger with Robinsons Bank Corporation will unlock various synergies across several products and service platforms and expand the customer and deposit base of both banks,” said BPI president and CEO Jose Teodoro Limcaoco.

“Apart from growing BPI’s client and deposit base, and expanding synergies, the merger will increase shareholder value by providing BPI opportunities to collaborate across the Gokongwei Group’s ecosystem, which includes market leading businesses in food manufacturing, air transportation, real estate and property development, and multi-format retail companies,” said Limcaoco.

The BPI chief added that the  merger will also expand BPI’s access to the Gokongwei network, especially to the Filipino-Chinese market segment, “which has been the significant advantage of our closest competitors.”

Following the special stockholders meeting, BPI and Robinsons Bank will sign the Plan of Merger and the Articles of Merger to formalize the transaction, subject to receipt of final regulatory approvals.

On effective date of the merger, BPI will issue primary common shares to the Robinsons Bank stockholders that will result in the Gokongwei-led bank’s shareholders owning approximately 6% of the resulting outstanding common shares of BPI.

“The merger will be effective on the first day of the calendar quarter following the completion of the regulatory approvals which is expected to be on 1 January 2024,” it said.

“The parties are in the process of filing with the Philippine Competition Commission and will file shortly with the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission,” the bank added. — BM, GMA Integrated News