Chinatrust applies for voluntary delisting of shares at PSE

MANILA, Philippines - Chinatrust (Phils.) Commercial Bank, the local subsidiary of one of the largest private banks in Taiwan, has applied for the voluntary delisting of its common shares from the Philippine Stock Exchange.

In its disclosure to the bourse, Chinatrust said its board has authorized the purchase of the outstanding shares through a tender offer pursuant to PSE rules.

Chinatrust said the tender offer price shall be set at a reasonable price in accordance with the valuation to be made by an independent third party duly accredited by the PSE.

 “The recent requirement to increase public float to 10 percent has given the bank the opportunity to evaluate its long-term strategic goals and objectives and further align them with the parent bank’s other foreign branches and subsidiaries,” it said.

As such, the bank said with its strong capital position, it would be able to pursue seamlessly its strategic objectives and deliver enhanced value to its shareholders and valued clients without being a publicly-listed entity.”

Under the rules, the exchange will allow delisting upon the request of company if the following are complied with:

• The delisting must be approved by a majority of the company’s incumbent directors.

• All security holders must be notified of the proposed delisting prior to the filing of the petition.

• A petition for delisting must be filed with the exchange together with the proposed tender offer terms and conditions at least 60 days in advance of the date when delisting shall become effective.

• A tender offer to all stockholders of record must be made. The company must submit a fairness opinion stating that the terms and conditions of the tender offer are fair.

• The company has obtained a total of at least 95 percent of the issued and outstanding shares of the company.

The exchange will implement a one-hour trading halt on Chinatrust shares tomorrow (Oct. 10) in order for the investing public to digest the material information disclosed by the bank.

Chinatrust Commercial Bank is one of the 200 biggest banks in the world in terms of capital with assets of over $57 billion at the end of December 2010. It has 140 business offices in Taiwan and networks in Japan, Hong Kong, India, Vietnam, Thailand, China, Canada, the United States and Paraguay.

Its Philippine unit, which was established in 1995, provides financial services to both local and foreign companies in the Philippines, aside from extensively serving the needs of the middle-income consumers. It is also one of the leading players in the local bond markets, dealing in both sovereign and corporate bonds, and is consistently cited as one of the top 10 government securities dealers by the Bureau of Treasury.

Chinatrust Philippines entered the consumer finance business in 2002 by acquiring a portfolio from a regional bank that was divesting its consumer business in the country. Since then, the bank’s consumer finance portfolio has grown into the largest and fastest growing in the country. 

In the next few years, Chinatrust hopes to build industry-leading franchises in consumer finance, debt capital markets and niche-based corporate banking.