MANILA, Philippines - Banco de Oro Unibank Inc. (BDO), the country's top lender, has secured the approval of the Philippine Deposit Insurance Corp. (PDIC) to acquire Export and Industry Bank's assets and liabilities.
In separate disclosures to the stock exchange, the firms said PDIC gave the green light to BDO's acquisition plan, which also covers all of EIB's deposit liabilities.
"The transaction is still subject to the execution of definitive agreements and documentation acceptable to the parties and PDIC and the fulfillment of certain closing conditions, which include the final approval of the Monetary Board," BDO said.
EIB president Juan Victor Tanjuatco, for his part, said: ""The transaction with BDO brings to full circle the efforts we started five years ago."
"The resulting synergies from BDO's large scale operations will enhance the position of our depositors, representing about 80,000 deposit accounts," he added.
Tanjuatco said EIB implemented several reforms to improve the bank's financial condition and make it attractive to investors. For one, it underwent capital reorganization in 2006 to get new funds from investors and existing shareholders.
"The capital reorganization and the substantial reforms new management implemented in recent years have enabled Exportbank to emerge as a bank with important value offerings to investors like BDO," he noted.
Aside from the transaction with BDO, PDIC also approved the sale of EIB's thrift banking arm, EIB Savings, to corporate buyers.
EIB has 50 branches. Its chairman Jaime Gonzalez earlier said the bank had liabilities of P19 billion in deposits and P9 billion in financial assistance from PDIC.