CIMB Group Holdings Bhd, Malaysia’s second-largest lender, is no longer acquiring almost 60 percent of the banking unit of Philippine conglomerate San Miguel Corp. (SMC), in essence scrapping the P12.20-billion deal which would have given CIMB a foothold in the Philippine banking industry.
Further to its previous report relating the contemplated acquisition by the CIMB Group of a controlling interest in Bank of Commerce, SMC said through a disclosure in the Philippine Stock Exchange that the parties have mutually decided not to proceed with the implementation of their share purchase agreement dated May 8, 2012.
Under their share purchase agreement, CIMB will acquire 67.325 million Bank of Commerce shares for P12.20 billion from San Miguel Properties Inc, SMC Retirement Plan, Q-Tech Alliance Holdings Inc. and other minority shareholders. This amount of shares was supposed to give the CIMB Group some 59.98 percent of the total issued and paid-up capital of Bank of Commerce.
Earlier this month, SMC President Ramon Ang said that SMC has closed its deal with CIMB.
Ang even said that the terms concerning the deal will be the same as what has been discussed before, involving the P12.20-billion, or $297-million agreement, to sell its majority stake in Bank of Commerce to CIMB.
In May, it was reported that SMC was at the “last stage” of discussions regarding its proposed sale of interest in Bank of Commerce to the CIMB Group.
Madelaine B. Miraflor