Chinabank, Plantersbank sign share purchase deal

Sy-led China Banking Corp. entered into a share purchase agreement (SPA) with Planters Development Bank, a lender primarily to small and medium enterprises, after the Monetary Board approved in principle their merger.

 

In a disclosure to the Philippine Stock Exchange Thursday, Chinabank said its board of directors received the “approval-in-principle” last Dec. 13.

 

Plantersbank may either be merged with Chinabank or China Bank Savings Inc. within three years, the bank added.

 

First vice president for corporate planning Alexander Escucha told GMA News Online the Monetary Board's move led banks to enter into an SPA.

 

"The actual sale of shares is not yet approved but we're moving a step closer to the acquisition of Plantersbank," he said.

 

Under the SPA, Chinabank is buying 84.77 percent of Plantersbank's subscribed capital stock – of which 67.13 percent is owned by the Tambunting family and 17.67 percent by the Dutch development bank FMO.

 

"With the SPA signed, there are requirements to be submitted to secure the clearance from the Monetary Board," Escucha said.

 

Once approved by the Monetary Board and the SPA has been executed, Chinabank will make a tender offer for the remaining 15.23 percent of the outstanding capital stock of Plantersbank.

 

Last Sept. 18, Chinabank said it is acquiring Plantersbank, chaired by former Ambassador to United Kingdom Jesus Tambunting, to expand its 

 

The bank targets to open 67 branches this year, and together with thrift unit China Bank Savings have a combined branch network of 415 by 2014. – VS, GMA News