San Miguel group completes purchase of Bank of Commerce


Posted at Apr 24 2008 09:43 AM | Updated as of Jan 15 2011 01:39 AM

Food and beverage giant San Miguel Corp., through subsidiaries San Miguel Properties Inc. and San Miguel Corp. Retirement Fund, has completed the acquisition of a 34-percent stake in Bank of Commerce.

San Miguel Properties and San Miguel Corp. Retirement Fund signed a subscription agreement with the bank in October last year.

The agreement covered the purchase of 10 million unissued and unsubscribed common shares of Bank of Commerce at P200 each or a total of P2 billion. The shares represent 34 percent of the bank's total outstanding capital.

The acquisition gives San Miguel Properties a ready credit line for its projects nationwide.

San Miguel Properties and Bank of Commerce recently tied up to offer the former's prospective clients financing. Residential buyers now have a chance to avail interest rates as low as 9.75 percent.

San Miguel Properties' projects include Wedge Wood in Sta. Rosa, Laguna; middle-income development Maravilla in General Trias, Cavite; and affordable housing Bel Aldea, also in Gen. Trias.