MANILA, Philippines - Philippine National Bank, the banking unit of tycoon Lucio Tan, is expected to raise P29.6 billion from the issuance of new common shares as part of its merger with Allied Banking Corp., a prospectus submitted to the Securities and Exchange Commission (SEC) said.
In the prospectus, PNB said it will issue 423.9 million shares at proposed maximum offer price of P70 per unit in favor of the shareholders of Allied Bank as approved by the SEC in January this year.
The new common shares, PNB said, would be listed and traded on the Philippine Stock Exchange.
As a result of the merger, PNB will have a combined outstanding capital stock of 1.08 billion common shares, of which 423.9 million new common shares are issued to the Allied Bank stockholders with an issue value of P29.6 billion.
The merger is intended to strengthen and consolidate PNB and Allied Bank’s long-term business plans with PNB as the surviving bank.
As a result of the merger, PNB will become the fourth largest private domestic bank in the Philippines with a combined distribution network of 654 branches and offices nationwide and combined total assets of P550.4 billion as of March 31, 2013.
PNB has the largest international footprint across the Asia Pacific Region, Europe, the Middle East and North America and a stronger platform to offer a wider range of personal and corporate banking products and services, and become a leading player in its chosen markets.
PNB more than doubled its net income in the first half of 2013 to P5.3 billion from P2.3 billion in the same period in 2012.
The bank said the improved earnings performance could be attributed to the strengthening of its balance sheet and improving profitability even after its merger with Allied Bank last Feb. 9.