Security Bank, Japan’s BTMU complete partnership deal

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SECURITY Bank (SECB) said it has received capital investment of P36.9 billion from the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) in exchange for its issue of shares to BTMU equivalent to a 20 percent stake in SECB, in completion of the strategic partnership deal they signed in January.

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Under the deal, Security Bank issued 150.71 common shares and 200 million preferred shares to BTMU.

The strategic partnership was approved by the Bangko Sentral ng Pilipinas (BSP) on February 24, 2016.

In a statement issued in Manila, Security Bank said BTMU is now its second largest shareholder, while it is now an equity affiliate of BTMU. The Dy Group remains as the biggest shareholder of Security Bank with majority voting control.

In a special SECB board meeting Friday, BTMU’s nominees Takayoshi Futae and Takahiro Onishi were elected to the Board of Directors of Security Bank. Futae is managing executive officer in charge of the Japanese Corporate Credit of BTMU based in Tokyo and Onishi, deputy general manager for Global Corporate Banking of BTMU in Japan.

“We welcome BTMU’s representatives to the Security Bank Board. We are happy to share with our customers and stakeholders the good news that our partnership deal with BTMU has been completed today. With our bigger capital and the combined strengths of Security Bank and BTMU, we look forward to serving our customers better than before,” Alberto S. Villarosa, chairman of the Board of Security Bank said in the statement.

Go Watanabe, chief executive officer for BTMU Asia & Oceania, said the strategic alliance with Security Bank is very much aligned with the bank’s expansion plan in Asia.

“We are very excited with the opportunity to work closely with Security Bank. We have started exploring various areas for collaboration including work-site business and PPP projects. By partnering with Security Bank, we can expect to expand our business platform and identify new business areas for BTMU in the Philippines.”

As a result of BTMU’s 20 percent equity investment, Security Bank’s shareholder capital increased to P90.2 billion pro-forma as of April 1, from P53.2 billion as of December 31, 2015. SECB’s book value per share rose by 36 percent to P119.53 pro-forma as of April 1, from P88.17 as of December 31, 2015. This puts Security Bank among the five largest private domestic universal banks in the country by capital. The additional capital will be used to accelerate the execution of Security Bank’s growth strategies.

“We hope to accelerate growth of our retail banking business, as well as better coverage of the SME sector. With BTMU’s expertise in project finance, we expect to participate more actively in PPP and infrastructure projects. Additionally, in partnership with BTMU, Security Bank will be able to penetrate the Japanese business community,” said Alfonso L. Salcedo, Jr., president and chief executive officer of Security Bank.

Japan’s Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a member of Mitsubishi UFJ Financial Group, Inc. (MUFG) has a global network spanning close to 50 countries and offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide.

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