MANILA, Philippines - Union Bank of the Philippines is buying out parent Aboitiz Equity Ventures' (AEV) stake in a Cebu-based thrift bank.
The move is part of the Aboitiz group's consolidation of its banking interests in Union Bank.
AEV on Tuesday disclosed that its board of directors approved UnionBank's offer to buy all of its shares in City Savings Bank Inc.
AEV's subsidiary Pilmico Foods Corp. also accepted UnionBank's offer to buy its shares in CitySavings. Together, AEV and Pilmico own 99.54% of CitySavings' issued and outstanding capital stock.
AEV said the deal is worth P5.7 billion.
However, Union Bank would still seek the deal's approval from the Monetary Board, as well as conduct due diligence.
AEV also owns 44.82% of UnionBank, which will mean it will still have a 44.61% interest in CitySavings' equity after the acquisition.