Ayala Corp. (AC) and GIC Private Ltd. have bought out the remaining indirect stake of DBS Bank Ltd. (DBS) in the Bank of the Philippine Islands (BPI) for approximately P30 billion.
The two firms specifically acquired the remaining ownership interest of DBS in Ayala DBS Holdings Inc. (ADHI), which is equivalent to a 9.9-percent indirect ownership BPI. Through this transaction, GIC and AC will effectively acquire 5.6 percent and 4.3 percent in BPI, respectively.
GIC and AC purchased unlisted ADHI shares for a total transaction value of P29.6 billion.
Because of this transaction, AC’s total ownership in BPI will increase from 44 percent to 48.3 percent.
“This divestment is in line with DBS’ focus on its core markets . . . We believe that the transaction will have a positive outcome for all parties,” said Piyush Gupta, DBS chief executive officer.
For his part, Jaime Augusto Zobel de Ayala, AC chairman and chief executive officer, said that the group welcomes GIC as part of the shareholder group of BPI.
“This acquisition is both a value and earnings accretive investment for Ayala. BPI has been a significant growth driver for Ayala over the years, and we believe its earnings growth momentum will continue in step with the expansion of the Philippine economy,” said Fernando Zobel de Ayala, AC president and chief operating officer.
BPI previously announced that it will raise capital of up to P25 billion by way of a rights offering.
“AC and GIC, through ADHI, intended to support this initiative,” AC said.
GIC is the Singapore sovereign wealth fund that has nine offices worldwide.