China Bank ventures into stock brokerage

MANILA, Philippines - Listed China Banking Corp. has completed the acquisition of brokerage firm ATC Securities Inc. as part of its venture into the stock brokerage business.

China Bank of retail and banking magnate Henry Sy informed yesterday the Philippine Stock Exchange (PSE) it signed a share purchase agreement to acquire 100 percent of ATC Securities through China Bank Capital Corp.

The listed bank said the closing of the purchase of the brokerage firm by China Bank Capital would be subject to due diligence, valuation and adjustments of the assets of the company.

Likewise, the transaction would have to be approved by the PSE as well as the Securities and Exchange Commission (SEC).

 The brokerage firm would be renamed China Bank Securities Corp. and would serve as the stock brokerage arm of the China Bank Group.

 China Bank Capital intends to build up the capitalization of China Bank Securities to P100 million to comply with the minimum level mandated by SEC for dealer brokers.

ATC Securities was incorporated in 1978 as Cathay Asia Securities Inc. to engage in securities brokerage and dealership. It changed its name to ATC Securities in 1984.

Last June 16, China Bank announced plans to establish a stock brokerage house and a special purpose corporation through China Bank Capital.