MANILA, Philippines - San Miguel Corp. will sign on Tuesday a deal selling 60 percent of its unlisted banking unit to Malaysia's second-largest lender CIMB Group, the president of the Philippine conglomerate said.
The deal marks CIMB's entry into the Philippines as the lender expands in the region. The bank's latest acquisitions include its purchase of some Asian units of Royal Bank of Scotland Plc last month.
"Yes," San Miguel President Ramon Ang told Reuters in a mobile text message when asked if the signing will take place on Tuesday, without giving details.
CIMB will be acquiring 60 percent of medium-sized Bank of Commerce for around $300 million, two sources with knowledge of the deal told Reuters, declining to be identified because the information was confidential.
San Miguel will be selling around 40 percent of its stake in Bank of Commerce while the rest of the shares will be sold by minority shareholders, one of the sources said.
The conglomerate's stake in the bank is held by its subsidiaries San Miguel Properties Inc and San Miguel Retirement Fund, which together hold about 76 percent of Bank of Commerce.
Shares of San Miguel were almost flat in early trading on Tuesday, largely in line with the main index. CIMB was up 0.8 percent.