RCBC cancels planned stock rights offer after Cathay stake buy

ABS-CBN News

Posted at Dec 23 2014 02:12 PM | Updated as of Dec 24 2014 02:18 AM

MANILA, Philippines - Rizal Commercial Banking Corp (RCBC) said it is cancelling a planned stock rights offer, after Taiwan's Cathay Financial Holding Co. Ltd.'s stake buy.

"After taking into consideration the proposed investment of Cathay Life Insurance Co., Ltd... (RCBC) will cancel its intended stock rights offer of up to 124,341,362 common shares with a par value of Php10.00 per share," the bank told the stock exchange.

On December 17, RCBC and Cathay Financial inked the deal for the Taiwan company to acquire 20 percent of RCBC for P17.92 billion ($400 million).

Cathay Financial said it was open to raising its stake in RCBC to as much as 30 percent, soon after it acquired 20 percent of the mid-sized Philippine lender. - With Reuters