MANILA, Philippines - The central bank's Monetary Board has approved in principle the merger between Planters Development Bank (Plantersbank) with either China Banking Corp. (China Bank) or its savings unit China Bank Savings Inc. (CBSI).
Last December, the MB approved the merger of Plantersbank with either China Bank or CBSI within three years from date of the said approval, the first stage of which being the acquisition by China Bank of 84.77% of the subscribed capital stock of Plantersbank. This includes the 67.13% stake which is owned by the Tambunting family and 17.67% owned by the Dutch development bank FMO.
In a disclosure to the stock exchange, China Bank said its board of directors approved the compliance with MB's requirements for the approval of the share purchase agreement entered into by the bank and stockholders of Plantersbank.
Once the MB approves and executes the share purchase agreement, China Bank will proceed with the further acquisition, via voluntary tender offer for the remaining 15.23% of the outstanding capital stock of Plantersbank.
Last September, China Bank forged a deal to acquire a majority stake in Plantersbank.