Lucio Co buys stake in PBCom

MANILA, Philippines - Puregold owner Lucio Co has entered the banking business by buying a 37.67- percent stake in Philippine Bank of Communications (PBCom) for P5.98 billion.

In a disclosure, PBCom told the Philippine Stock Exchange that it had accepted an offer from Co – through his delegated entity Union Equities Inc. – to subscribe to 181.08 million common shares at  P33 per share.

“The subscription of the shares will be effective upon the due execution of the subscription agreement and will be subject to the applicable regulatory approvals,” the bank said.

The share sale was made after the commercial bank last month said it is eyeing capital raising activities such as a stock rights offer, the issuance of capital instruments qualifying as Tier 2 under the new Basel III standards, and through a private placement by a third party.

PBCom  recorded a 95-percent drop in net income to P37.38 million in the first quarter from P714.80 million in the same period last year.

Total operating income of the bank fell 45 percent to P769.62 million, while total operating expenses climbed five percent to P657.61 million.

Earlier this year, the bank acquired Laguna-based Rural Bank of Nagcarlan Inc. and 90 percent of Banco Dipolog Inc.

The purchases were meant to expand the bank’s market reach in the countryside and increase lending to the small and medium enterprises.