MANILA, Philippines - Diversified conglomerate San Miguel Corp. has moved a step closer to finalizing the entry of a Malaysian investor into Bank of Commerce, a company disclosure to the Philippine Stock Exchange (PSE) said.
SMC corporate information officer Ferdinand Constantino informed the PSE that Bank Negara of Malaysia has approved the investment by CIMB Bank Bhd. in Bancommerce.
With the approval, Constantino said the final step would involve the go-signal from Philippine monetary authorities.
“We advise that the Bank Negara Malaysia approved the investment by CIMB in Bank of Commerce subject to the relevant approvals by the Bangko Sentral ng Pilipinas,” Constantino said. “We shall advise the exchange upon approval by the BSP of the investment.”
SMC president Ramon Ang said they are looking forward to conclude the sale of their majority stake in Bancommerce to CIMB as this would provide the conglomerate with a good avenue for future growth in the global financial market.
“I think, we will stay with CIMB in Bancommerce for the meantime but eventually if there’s an opportunity in their international operation, we can eventually take advantage of that opportunity,” Ang said.
He said Simon Paterno of Credit Suisse First Boston would be installed as Bancommerce president once the sale is consummated.
According to Ang, they expect the BSP to approve the sale within the year.
CIMB is one of the largest banks in Malaysia. It is currently in eight out of 10 ASEAN nations (Malaysia, Indonesia, Thailand, Singapore, Cambodia, Brunei, Vietnam and Myanmar).
CIMB also has market presence in China, Hong Kong, Bahrain, India, Sri Lanka, the US and UK. As of end-2011, it has the largest branch network in ASEAN with 1,117 branches.
In May this year, Bancommerce signed a 58 percent sale purchase agreement with CIMB Bank, San Miguel Properties Inc., San Miguel Corp. Retirement Plan, Q Tech Alliance Holdings Inc. and various minority shareholders.
SMC Retirement Plan will remain Bancommerce’s largest minority shareholder with a 27 percent stake.
Bancommerce is currently the country’s 16th largest bank in terms of assets.