UnionBank completes P1.2 billion takeover of PETNET

MANILA, Philippines — Listed Union Bank of the Philippines has completed a P1.2 billion deal to take over remittance and payments firm PETNET Inc. as part of the consolidation of the banking and financial services business of the Aboitiz family.

In a disclosure to the Philippine Stock Exchange, UnionBank announced the closing of the acquisition of 51 percent of the issued and outstanding common shares of PETNET Inc., collectively by City Savings Bank Inc. and Union Properties Inc. (UPI).

UnionBank owns 99.79 percent of CitySavings and 100 percent of UPI, while Aboitiz Equity Venures Inc. (AEV) has a 49.4 percent interest in UnionBank.

UnionBank announced the execution of the share purchase agreement (“SPA”) between AEV, City Savings and UPI for the acquisition of common shares in PETNET last Feb. 9.

City Savings agreed to acquire 40 percent of PETNET, while UPI agreed to buy the other 11 percent. Both companies acquired 2.46 million shares of PETNET at P487.54 per share.

“As all the relevant conditions of the transaction were duly complied with by each party, AEV, City Savings and UPI closed their transaction by signing the respective deed of absolute sale for the sale of AEV’s shares in PETNET last Dec. 17,” UnionBank said.

The Aboitiz-led bank said the acquisition by CitySavings and UPI of a significant stake in PETNET would enable the country’s 9th largest bank to better align its strategies and take direct control of the business decisions in PETNET.

“Furthermore, this will enable PETNET to deliver a customer experience consistent with that of UnionBank,” the bank said.

PETNET is the largest Western Union agent network in the Philippines. It provides its customers with a comprehensive scope of reliable financial services such as international and domestic remittance, money changing, bills payment, e-loading, Department of Education loans as well as Government Service Insurance System (GSIS) pension loan acceptance and micro-insurance in one location.

AEV, the flagship company of the Aboitiz family, has been consolidating its banking and financial services business under UnionBank.

AEV entered the money transfer business after spending P1 billion to acquire a 51 percent stake in PETNET in June 2015. PETNET was founded in 1998 and operates as an agency to grow the network of Western Union in the Philippines.