The San Miguel Group is eyeing to complete the acquisition of a controlling stake in medium-sized commercial bank Bank of Commerce by November 2009.
The San Miguel Group, through its real estate unit San Miguel Properties Inc. (SMPI), and its retirement fund San Miguel Corp. Retirement Plan, currently owns 34.3 percent of Bancommerce.
In a disclosure to the Philippine Stock Exchange, SMPI said the group is infusing an additional P2 billion into Bancommerce to increase its stake to 51 percent.
“The closing of the transaction and payment of the subscription price for the sale share are subject to the satisfaction of certain conditions, including the issuance of applicable government approvals,” SMPI corporate information officer Ferdinand K. Constantino said.
The new investment will bring the San Miguel group’s total investment in the bank to P4 billion which, in turn, will raise the bank’s total capital base to approximately P10.42 billion.
Bancommerce is currently controlled by Antonio “Tonyboy” Cojuangco, a nephew of San Miguel chairman Eduardo “Danding” Cojuangco.
Funding for the acquisition will come from internally-generated cash, payable in four tranches of P500,000 each.
Part of the proceeds from the sale will be used to expand the bank’s branch network expansion nationwide and loan portfolio.
With the acquisition of a controlling stake, Bancommerce would serve as SMPI’s retail arm for financing for its various residential condominium projects.
The bank could tap SMPI’s customer base by offering investment and deposit products, home improvement and appliance financing.
The services of the bank could likewise be availed of by the San Miguel Group for its diverse and nationwide operations, particularly to service the financing needs of the group’s dealers, agents and wholesalers for depository and payment channels, guarantees, letters of credit, credit lines, loans and discounts. – Zinnia dela Peña