RCBC’s Japanese partner sells 17% stake to US fund

Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU), a unit of Japan’s largest financial company, will sell its 17.14-percent stake in Rizal Commercial Banking Corp. (RCBC) to the US-based Spinnaker Capital Group.

RCBC said the 17.14-percent interest is equivalent to 108.5 million common shares, hence Spinnaker Capital would need about P2.3 billion for the deal based on the stock’s closing price of P21.25 per share last Wednesday.

Spinnaker Capital Group is a US-based financial institution that specializes in the emerging markets. It also makes investments in both sovereign and corporate credits to diversify its portfolios.

Spinnaker Capital also manages three investment funds: the global emerging markets fund, the global opportunity fund, and the global strategic fund.

It also operates Spinnaker Ventures, an expansion stage venture capital fund based in San Francisco. Through the fund, it invests in high quality emerging companies in the US, active in information technology, communications and business services. In addition to capital, it assists portfolio companies grow by leveraging on its network of contacts and international experience.

The 17.14-percent stake in RCBC was originally held by the United Financial of Japan (UFJ), a subsidiary of UFJ Holdings.

However, UFJ Holdings merged with the Mitsubishi Tokyo Financial Group last year, resulting in the creation of BTMU.

The sale of BTMU coincides with the desire of the RCBC to entice strategic partners in the bank to bring in fresh capital. Adjustments to the International Accounting Standards (IAS) this year, and to the Basel II framework next year have forced RCBC and the rest of the banking system to raise their capital base.

RCBC vice chairman Cesar EA Virata said they are willing to reduce equity control. "We are willing to be diluted to up to 51 percent but no lower," he stressed.