Chinabank pays P1.58B to acquire Plantersbank

Sy-led China Banking Corp. (Chinabank) paid the majority shareholders of Planters Development Bank P1.579 billion after both banks signed a share purchase deal.

 

In a disclosure to the Philippine Stock Exchange, Chinabank on Thursday said the amount covers the 84.77 percent capital stock owned by the Tambunting family and related parties, and the Dutch development bank FMO.

 

The total purchase price for Plantersbank is P1.863 billion.

 

Chinabank will make a tender offer for the remaining 15.23 percent common stocks amounting to P283.7 million. These are held by Asian Development Bank, Korea Development Bank, Development Bank of the Philippines, Land Bank of the Philippines, and International Finance Corporation.

 

The Investment & Capital Corporation of the Philippines was hired as exclusive financial adviser to Plantersbank in the transaction.

 

"The strategic partnership represents opportunities for Chinabank to expand its SME (small and medium enterprise) portfolio and geographic footprint," the bank said.

 

Plantersbank is the country’s largest private development bank and leading bank for SMEs with total assets of P54 billion, total loan portfolio of P33 billion, and total deposits of P44 billion as of June 30, 2013.

 

With Plantersbank folded into the Chinabank group, the Sy-led bank is now the fifth largest private universal bank in the country with P410 billion in assets as of Sept. 30, 2013 and a combined branch network of 448 branches.

 

The China Bank Group includes Chinabank, China Bank Savings, Unity Bank, China Bank Insurance Brokers Inc., and bancassurance affiliate Manulife China Bank Life Assurance Corporation.

 

At a special stockholders’ meeting Wednesday, Ambassador Jesus Tambunting was elected as chairman and Carlos Borromeo as president of Plantersbank.

 

Also elected to the Plantersbank board were Ricardo Chua as vice chairman; Nancy Yang, Alberto Emilio Ramos, Alexander Escucha, Antonio Espedido Jr., and Ramon Zamora, as members; and Roberto Kuan, Alberto Yao, and Margarita San Juan as independent directors – all of whom are also directors of China Bank Savings, the thrift arm of Chinabank. – Danessa Rivera/VS, GMA News