LT Group to acquire 60% of PNB-Allied

MANILA, Philippines - Business tycoon Lucio Tan intends to acquire up to 60 percent of the capital stock of the merged Philippine National Bank and Allied Banking Corp., a disclosure to the Philippine Stock Exchange (PSE) said.

LT Group Inc., the holding company for Tan’s multiple investments, informed the PSE that it is “currently working to comply with any regulatory requirements for said investment, both locally and overseas in such countries/states where the bank conducts branch and other banking operations.”

As this developed, LT Group said the Securities and Exchange Commission (SEC) had approved the increase in capital stock of five companies, which have shares at PNB-Allied Bank. These firms and their corresponding shares at PNB-Allied are Kenrock Holdings (1.71 percent); Leadway Holdings (4.28 percent); Multiple Star (2.02 percent); Pioneer Holdings (2.25 percent) and Allmark Holdings (1.36 percent).

LT Group has bought substantial shares in the firms to jack up its holdings in the merged bank.

“Upon the foregoing approval of the increase in capital, the company now owns controlling interest in each of the above-named companies,” the group said.

Earlier, the group said it plans to invest more than P2.2 billion to acquire shares in the merged bank.

The company said bulk of the investment, or P800 million, will be used to purchase shares in Lead Holdings Corp., a holding firm which has a stake at PNB-Allied Bank.

Another big chunk of the proposed investment, or P748 million, will be used to acquire 85 percent of Multiple Star Holdings Corp., a company which also has shares in the merged bank.

LT Group will also spend about P245 million to acquire shares in Merit Holdings & Equities Corp., Ivory Holdings Corp. and Dunmore Development Corp.

The company also proposed to acquire shares in more holding firms which have shares in PNB-Allied Bank. These are Donfar Management Ltd. (2.02 percent), Fast Return Enterprises Ltd. (1.19 percent), Fragile Touch Investments Ltd. (1.49 percent), Mavelstone International Ltd. (1.94 percent), Uttermost Success Ltd.(1.98 percent),True Success Profits Ltd. (5.38 percent) and Key Landmark Investments Ltd. (8.74 percent).