MANILA, Philippines - SMC Retirement Plan, the retirement fund owned by employees of diversifying conglomerate San Miguel Corp., has acquired the 31-percent stake of San Miguel’s property unit in medium-sized lender Bank of Commerce.
San Miguel president and chief operating officer Ramon S. Ang said in a text message that the Bancommerce shares were sold to the conglomerate’s retirement fund, bringing SMC Retirement Plan’s total shareholdings in the bank to 52 percent.
Selling Party San Miguel Properties Inc. said the sale would still be subject to regulatory approval.
Bancommerce is undertaking a capital build-up program that will involve the issuance of around 40 million shares this year to raise P6.9 billion in fresh capital. It is the 15th largest lender with a total asset base of P109.5 billion and deposits of P91.37 billion.
The bank’s issuer credit rating had recently been upgraded by PhilRatings Services Corp. due to its improving capital position and the San Miguel Group’s acquisition of a controlling stake in the bank.
PhilRatings said the San Miguel Group’s majority ownership has strengthened Bancommerce’s competitive position given the opportunity of servicing dominant and leading domestic companies which belong to the food and beverage conglomerate.
PhilRatings added that the controlling interest of the San Miguel Group provides Bancommerce a greater opportunity to further expand its volume of business. This will result from the major projects being undertaken by Bancommerce to generate additional revenue and funding streams from partners and consumers of the companies within the group.