US-BASED TPG Growth, the middle market and growth equity investment platform of TPG, on Monday said it is acquiring a 40 percent stake in BDO Unibank Inc.’s rural bank subsidiary, One Network Bank.
The Henry Sy-led bank and TPG Growth both informed the Philippine Stock Exchange (PSE) that they have reached an agreement by which the latter will acquire a 40 percent interest in One Network Bank (ONB), a rural bank subsidiary of BDO that primarily has a presence in Davao City and other parts of Mindanao.
The firms, however, have yet to disclose the share price or total amount involved in the transaction.
After the transaction, BDO will retain approximately 60 percent ownership in ONB, which has more than 100 branches and offices.
The transaction is still subject to closing conditions and regulatory approval.
“We look forward to working with TPG to accelerate ONB’s expansion and to develop new products to cover the underserved market segments. Through this partnership, ONB will benefit from TPG’s global experience in financial services, especially in developing markets,” said Nestor Tan, president and chief executive officer of BDO.
The two firms said this new phase of ONB’s growth is aligned with the Bangko Sentral ng Pilipinas’ efforts to improve financial inclusion in the country.
With more than $7 billion of assets under management, TPG Growth targets investments in a broad range of industries and geographies. TPG has partnered with more than 15 financial services companies across Asia.
Across its platform, TPG has invested in a wide variety of financial services companies throughout Asia, including Indonesian financial institution BFI; Janalakshmi, India’s largest microfinance institution; Shenzhen Development Bank in China; and Union Bank of Colombo in Sri Lanka.
“TPG has worked with many highly impactful financial services businesses across Asia. Our insight in the sector has come from years of identifying and developing the full potential of strong businesses,” said Ganen Sarvananthan, head of TPG Southeast Asia.
“Together, BDO and ONB have built an impressive foundation. We look forward to bringing all that we’ve learned into a collaborative partnership and expanding the impact they’ve already created,” he added.
BDO remains the Philippines’ largest bank in terms of assets, which at end-December stood at P1.94 trillion.