China Banking Corp. (China Bank) said on Thursday its board of directors has approved the move by unit China Bank Capital Corporation (CBCC) to complete its 100-percent acquisition of brokerage firm ATC Securities Inc., making the latter a wholly-owned subsidiary of CBCC and a member of the China Bank Group.
In a disclosure to the stock exchange, China Bank said that in a meeting on March 15, its board also approved the change in ATC Securities’ name to China Bank Securities Corporation (CBSC). The board also approved an increase in its authorized capital stock from P38 million to P150 million.
The share purchase agreement for the transaction was signed in July last year
China Bank said that the transaction has already been approved by the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).
Also during the board meeting, Peter M. Mutuc was appointed as the president and chief executive officer of CBSC, while China Bank President Ricardo Chua will serve as chairman and Romeo D. Uyan as the vice chairman of the brokerage firm.
Incorporated in December 1978 as Cathay Asia Securities Inc., ATC Securities is a company engaged in securities brokerage and dealership, and later changed its name to ATC Securities Inc. in 1984.
In February, the bank increased its capital infusion into CBCC to P2 billion from P500 million previously. It is also committed to a P1-billion yearly capital expenditure for branch expansion and IT-related expenses.
Founded in 1920, China Bank is the country’s first privately owned local commercial bank and is now the sixth largest private universal bank in terms of assets. As of end-2016, China Bank was operating 541 branches nationwide, including 150 CBS branches.