US-based investors abandon plan to buy into Bankwise

A group of US-based investors has reportedly backed out of its intention to buy into Bankwise Inc. but the bank officials are still aggressively looking for foreign investors to infuse fresh capital into the bank.

Industry sources told reporters over the weekend that the group has gone as far as making inquiries with the Bangko Sentral ng Pilipinas (BSP) but the transaction did not push through for unknown reasons.

Despite this initial failure, sources said Bankwise continues to attract interest among foreign investors and the aggressive search has already opened a number of possible options for the bank.

Sources said Bankwise has been in talks with another group of foreign investors who expressed interest in buying into the bank if only for the purpose of gaining a foothold in the Philippine banking sector.

Sources said Bankwise is attractive to investors because it has a license to accept FCDU (foreign currency deposit units) although it doesn’t have a trust license.

Formerly known as the Bank Dharmala, Bankwise was acquired last year by former presidential publicist Dante Ang who was later elected chairman of the board of directors.

A veteran public relations agent, Ang had published Kabayan and later on acquired the national daily newspaper The Manila Times from the Gokongweis.

Ang had led the group that acquired the bank, contributing 20 percent of the P250 million that was needed to buy 60 percent through a holding company, Seed Capital.

Before the entry of Seed Capital into Bankwise, the bank had over P700 million worth of DOSRI loans and the BSP had already approved a rehabilitation plan to turn the bank around within five years.

Ang said at the time that the rehabilitation would involve the infusion of P250 million worth of fresh capital, Bankwise was also negotiating for the BSP to accept some P1 billion worth of foreclosed assets as dacion en pago for the DOSRI loans.

Bankwise is based mainly in Metro Manila where it has a total of six branches including its head office.