Merger of EBC Investments, 5 firms okayed

MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the merger of EBC Investments Inc. with five corporations engaged in property and financial services.

Based on documents filed with the SEC, EBC Investments is acquiring all the assets and assuming all the liabilities of BDO Realty Corp., EBC Management Inc., PCI Properties, BDO Financial Services, and Property Care.

The merger is intended to ensure greater efficiency and economy in management operations.

BDO Universal Bank, the sole shareholder of BDO Realty and BDO Financial Services, shall receive 1.34 million preferred shares worth P134.07 million in exchange for the aggregate net assets of P134.07 million.

On the other hand, EBC Strategic, the lone shareholder of EBC Management, shall receive 205,232 shares worth P20.52 million in exchange for the net assets of the latter.

The 1.545 million preferred shares to be issued to the shareholders of the absorbed companies shall be taken from the unissued portion of the present authorized capital stock of EBC Investments, the surviving company.

In December 2006, the Sy family’s banking unit Banco De Oro acquired Equitable PCIBank as part of a long-term goal to become one of the biggest banks in the industry. This was one of the largest bank mergers in the industry. 

BDO, the country’s largest commercial bank in terms of assets, reported a 10-percent drop in net earnings during the first half of the year to P2.1 billion. In the second quarter alone, the bank’s net income rose nine percent to P1.1 billion. Despite a tough business environment, BDO expects its net profit for the whole year to reach P 5.5 billion.