Philtrust eyes unibank status

The board of directors of Philippine Trust Co. (Philtrust Bank) of Filipino Chinese tycoon Emilio Yap is looking at converting the bank into a universal bank from a commercial bank.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said the directors who own two thirds of the institution has approved the amendment of the articles of incorporation to effect the conversion. The change into a universal bank is subject to the approval of the Bangko Sentral ng Pilipinas (BSP).

A universal bank offers investment services in addition to the services given by commercial bank which is to accept deposit and give business loans.

Last month, Philtrust bank inked a P3 billion deal with the Nubla and Chung families to buy 58.26 percent of medium-sized Philippine Bank of Communications (PBCom). The Nublas own 28 percent of PBCom and the Chungs, 26 percent. The agreement between the two families and Philtrust has left out the Luy family, the single largest owner of PBCom holding 37 percent of the shares.

Philippine Deposit Insurance Corp. (PDIC) acting president Michael Osmena said Philtust is in talks with the Luy family in order to obtain controlling interest of at least 67 percent of the bank. However, industry insiders say the family is dissatisfied with the P30 per share offer price as PBCom shares are being traded at over P60 apiece in the market when the offer was made. PBCom shares closed at P69 for the year.

The BSP and the PDIC screen potential investors in a bank to ensure long run stability and the buyer of PBCom must acquire enough shares for a controlling interest in the bank to get the approval of regulators.

"They (Philtrust) will have to go through the prequalification process," Osmeña said.

Philtrust would have to shell out more money as it would have to make a tender offer to other shareholders of publicly listed PBCom.

Should Philtrust succeed in taking control of PBCom, a merger between the two medium-sized banks would create the country’s 13th biggest bank, with total assets of P115.4 billion.

Currently PBCom is ranked 19th with total assets of P60.3 billion and Philtrust, 20th with P55.1 billion.