MANILA, Philippines - China Banking Corp. said it is paying P1.86 billion to acquire Planters Development Bank (Plantersbank).
In a statement, China Bank said it has implemented the share purchase agreement to acquire Plantersbank.
China Bank paid P1.579 billion for the 84.77% stake owned by the Tambunting family and related parties, and the Dutch development bank FMO.
The rest of the 15.23% common stock, worth P283.7 million, will be acquired through a tender offer. China Bank said it is preparing to conduct a tender offer to the shareholders of the remaining stake, which includes ADB, Korea Development Bank, DBP, Landbank, and IFC.
Ambassador Jesus Tambunting and Carlos Borromeo were re-elected to the new Plantersbank board, during a special stockholders' meeting. Tambunting was elected Plantersbank chairman and Borromeo as president.
Also elected to the Plantersbank board were six directors and three independent directors, who are also directors of China Bank. These are: Ricardo Chua as vice chairman; Nancy Yang, Alberto Emilio Ramos, Alexander Escucha, Antonio Espedido Jr., and Ramon Zamora, as members; and Roberto Kuan, Alberto Yao, and Margarita San Juan as independent directors.
The acquisition of Plantersbank now makes China Bank the fifth largest private universal bank in the Philippines
country with P410 billion in assets (as of Sept. 30, 2013).
As of end 2013, China Bank had 368 branches -- 295 for the main bank and 73 for the savings bank. With the addition of Plantersbank's 78 branches and 2 unopened licenses, the combined branch network is now 448 branches.
The strategic partnership will allow China Bank to expand its SME portfolio, as Plantersbank is the country's largest private development bank and leading bank for SMEs.
An integration task force has been formed to identify and capture the significant growth opportunities and to make the most of the combined strengths of China Bank, China Bank Savings, and Plantersbank.