• AUB ready to take over Pampanga rural bank

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    Asia United Bank’s (AUB) rural bank subsidiary is set to acquire the banking business of the Cooperative Bank of Pampanga (CBP) under a purchase and assumption (P&A transaction), where AUB will absorb more than P300-million worth of liabilities of the Pampanga-based bank.

    Specifically, the Rural Bank of Angeles (RBA), AUB’s rural bank subsidiary, will purchase all the assets, including the seven existing banking units of CBP as well as its liabilities.

    As of August this year, CBP had total assets of P152.6 million, total liabilities of P342.7 million, and a net capital deficit of P190.1 million. Given that the liabilities of CBP are in excess of the recoverable value of its assets, no cash consideration will be paid to CBP or to any shareholder of CBP as part of the transaction, an AUB disclosure to the Philippine Stock Exchange showed.

    AUB said in its disclosure that the prospective acquisition of CBP’s banking business is expected to further facilitate the expansion of RBA’s microfinance/countryside lending activity in Pampanga. Also, the prospective addition of 20 branch licenses in restricted areas as a result of the P&A transaction will support AUB’s branch network expansion thrust.

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