BSP okays AUB acquisition of Asiatrust

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given Asia United Bank (AUB) the green light to acquire Asiatrust Development Bank Inc., raising the commercial bank’s resources by more than P4 billion.

AUB said in a statement that the BSP’s Monetary Board made the formal approval of the Asiatrust acquisition last May 10.

AUB has bought the banking assets and would assume the banking liabilities of Asiatrust.

Aside from raising the bank’s resources, AUB said the transaction would expand its branch network nationwide to 102 with the acquisition of Asiatrust’s 28 branches.

AUB president Abraham Co said in a statement that the bank has undertaken three major acquisitions in just a span of three years.

“The acquisition is in line with our aspiration to make AUB a stronger and more formidable banking industry player as we create synergies with Asiatrust,” Co stressed.

AUB took over Rural Bank of Angeles that has four branches and two satellite offices in Pampanga in 2010. It is also awaiting the BSP approval of its acquisition of the Cooperative Bank of Cavite last year.

AUB has assets of P50 billion and capitalization of P9 billion as of end-2011. Its return-on-equity ratio is at 12 percent, ranking it among the most profitable commercial banks in the country.

The bank is owned by a group of Filipino, Taiwanese and Singaporean investors engaged in property development, manufacturing and other equity ventures.

Republic Biscuit Corp. (Rebisco), the Philippines’ leading manufacturer, distributor, and exporter of snack food products for the past 49 years, is the biggest shareholder of AUB.

Dutch-owned ING Bank NV acted as financial adviser to Asiatrust on the deal. – Lawrence Agcaoili, Ted Torres