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Business

BPI, Robinsons Bank merger clears last hurdle

Lawrence Agcaoili - The Philippine Star
BPI, Robinsons Bank merger clears last hurdle
BPI said in a disclosure to the Philippine Stock Exchange (PSE) that the corporate regulator gave the green light to the proposed merger between BPI and Robinsons Bank last Dec. 29.
STAR / File

MANILA, Philippines — The proposed merger between Ayala-led Bank of the Philippine Islands (BPI) and Gokongwei-owned Robinsons Bank Corp. cleared its last hurdle after the Securities and Exchange Commission (SEC) approved the marriage of the two banks.

BPI said in a disclosure to the Philippine Stock Exchange (PSE) that the corporate regulator gave the green light to the proposed merger between BPI and Robinsons Bank last Dec. 29.

The 172-year-old bank also approved the amendments to articles of incorporation to reflect the increase in its authorized capital to P54.6 billion from P50.6 billion.

Last Dec. 14, the proposed consolidation, with BPI as the surviving bank, was approved by the Bangko Sentral ng Pilipinas (BSP) through Resolution 1633 issued by the Monetary Board.

The Ayala-led bank executed a supplemental to the Plan for Merger with the Gokongwei-owned bank last Oct. 20 to comply with the requirements of the Securities and Exchange Commission (SEC).

JG Summit Capital Services Corp. controls a 59.99 percent stake in Robinsons Bank, while Robinsons Retail Holdings Inc. (RRHI) owns 39.99 percent.

Upon completion of the merger, the Gokongwei Group would get an additional six percent stake in BPI.

In January last year, RRHI spent nearly P20 billion to acquire the 4.4 percent interest in BPI from Arran Investment Pte Ltd, an affiliate of Singaporean state fund GIC Private Ltd.

Aside from providing the number of shares to be issued in favor of the Robinsons Bank shareholders, BPI also updated the percentage of ownership of Robinsons Bank in GoTyme Bank Corp. that was reduced to 18 percent from 20 percent and in Unicon Insurance Brokers Corp. that also went down to 17.13 percent from 40 percent.

Last September, the Philippine Competition Commission (PCC) approved the merger between BPI and Robinsons Bank.

Through the consolidation, BPI would be able to unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, at the same time, by capitalizing on BPI’s expertise and network, enhance the overall banking experience of Robinsons Bank customers.

It would also be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group.

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