After taking hold of a majority stake in Planters Development Bank (Plantersbank), China Banking Corp. sealed another deal that will further boost its interest in the private bank.
A disclosure to the Philippine Stock Exchange showed on Thursday that the board of directors of China Bank has approved and authorized the company to acquire via negotiated sale the additional 1.96 million shares beneficially owned by Capital Shares and Investment Corp. in Plantersbank.
After the acquisition, China Bank’s holdings in Plantersbank will increase to 86.41 percent from the initial 84.77 percent.
The board of the Henry Sy-led bank also approved the company’s plan to conduct a voluntary tender offer for the remaining 13.59-percent shares of Plantersbank.
The transaction, however, is still subject to the execution of the documents and approval of regulatory offices.
Earlier this year, China Bank paid as much as P1.8 billion of the P1.9 billion it owes for the acquisition of Plantersbank.
In its previous filing with the exchange, China Bank said that it 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 paid on the third week of January as much as P1.8 billion for the 84.77-percent capital stock owned by the Tambunting family and related parties in the bank, as well as that of the Dutch development bank FMO’s.
Plantersbank is the country’s largest private development bank and leading bank for small and medium enterprises, with total assets of P54 billion, total loan portfolio of P33 billion, and deposits of P44 billion as of June 30, 2013.