BDO completes acquisition of GE Money Bank

MANILA, Philippines - Banking giant Banco De Oro Unibank Inc. (BDO) has completed the acquisition of GE Money Bank, the thrift banking unit of GE Capital.

In a disclosure to the Philippine Stock Exchange yesterday, BDO said it has purchased 98.91 percent of GE Money Bank, making it a new subsidiary to complement its commercial banking operations.

The purchase, worth P1.3 billion, included 37.74 million new common shares priced at P34.45 each.

As a result BDO will absorb GE Money’s 30,000 customers, 350 employees, 31 branches and 38 ATMs nationwide.

GE Money has a consumer and small and medium enterprise (SME) loan portfolio of between P4 billion to P6.6 billion at the start of 2009.

On the other hand, BDO has a network of over 700 branches and 1,200 ATMs. Likewise, the commercial bank of the SM Group of Companies operates an offshore branch in Hong Kong and an overseas network of 21 remittance offices.

In a press statement, BDO president Nestor V. Tan said the deal is as “a win-win situation for both companies.

“We are very pleased to be working with GE and look forward to exploring opportunities for further collaboration in the future,” Tan added.

The acquisition arrangement also opens a 1.5-percent stake in BDO for GE as part of a share swap deal.