Japanese bank selling 17% stake in RCBC

An equity package of 17 percent in Rizal Commercial Banking Corp. (RCBC) is up for sale, as the bank’s Japanese partner merges with another bank on Oct. 1.

The 17-percent RCBC stake is owned by UFJ Holdings Inc., which merged with Mitsubishi Tokyo Financial Group Inc., the second largest banking group in Japan with the Bank of Tokyo-Mitsubishi as the surviving entity in the merger, UFJ will have to sell its stake in RCBC since the Bank of Tokyo-Mitsubishi has its own banking operation in the Philippines.

The Japanese financial institution, the second biggest shareholder in RCBC after the Yuchengco group, has tapped the services of ING Bank to scout for interested buyers.

RCBC officials added that they are not selling anything else and that they, in fact, have been looking for acquisition opportunities since last year.

"In fact, we are looking for institutions to acquire," RCBC vice-chairman Rizalino Navarro said.

"We have a big Japanese business clientele base which we must consider seriously," Virata added.

He said RCBC is interest in expanding not only in the Philippines but also on a regional scope.

He pointed out they are looking at other regional players for alliances including the People’s Republic of China, Australia, New Zealand and India. Of its total equity, RCBC is reportedly prepared to sell 23 percent for regional players.

He said entering into extra-partnership or strategic agreements is another option for domestic and regional expansion.

"We are scanning the environment, looking for strategic partners that will help us introduce new technologies, new products and even new expansion areas or horizons," he said.

The sale of UFJ’s stockholdings in RCBC may have fueled earlier speculations that the Bank of the Philippine Islands (BPI) was poised to acquire RCBC.

April Lee Tan, head of research for citiseconline.com said the recent acquisition of Prudential Bank by BPI should have dosed such speculations.

"I don’t think it is right. BPI has and will spend large sums for the Prudential Bank acquisition plus the accompanying integration process which is strenuous and time consuming," Tan said in an interview. "In fact, I understand that RCBC is also in the lookout for acquisitions."