China Banking Corp. (China Bank) has paid P1.8 billion of the P1.9 billion it owes for the acquisition of Planters Development Bank (Plantersbank), a move seen to position the Henry Sy-led bank into one of the largest banks in the country.
A disclosure to the Philippine Stock Exchange on Thursday showed that China Bank has implemented the share purchase agreement (SPA) to acquire Plantersbank.
Out of the total purchase price of P1.9 billion for 100 percent of Plantersbank, China Bank settled on Wednesday the amount of P1.8 billion for the 84.77-percent capital stock owned by the Tambunting family and related parties, and the Dutch development bank FMO.
According to the listed bank, the acquisition of the remaining 15.23-percent common stock of Plantersbank for the amount of P283.7 million will be through a tender offer.
Based on its audited financial statements as of December 31, 2012, Plantersbank equity net of PFRS-related adjustments stood at P919 million.
At the ensuing special stockholders’ meeting, Ambassador Jesus Tambunting and Carlos Borromeo were also reelected to the new Plantersbank board. Tambunting was elected chairman and Borromeo as president.
“The strategic partnership represents opportunities for China Bank to expand its SME [small medium enterprise]portfolio and geographic footprint,” China Bank informed the local bourse.
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 deposits of P44 billion as of June 30, 2013.
“An integration task force has been formed to identify and capture the significant growth opportunities and to make the most of the combined strengths of China Bank, China Bank Savings and Plantersbank,” China Bank further said.
With Plantersbank now part of the China Bank Group, China Bank is the fifth-largest private universal bank in the country with P410 billion in assets as of September 30, 2013.
It closed 2013 with 368 branches, 295 for the main bank and 73 for the savings bank. With the addition of Plantersbank’s 78 branches and two unopened licenses, the combined branch network is now 448 branches—well over the 400 branch network target of China Bank for 2014.