DBS sells BPI stake for P29.6 B

MANILA, Philippines - Ayala Corp. and Singapore-based fund manager GIC Private Ltd. have bought the remaining shares of DBS Bank Ltd. at the Bank of the Philippine Islands (BPI) for P29.6 billion.

Specifically, GIC and Ayala have acquired DBS Bank’s remaining interest in Ayala DBS Holdings Inc. (ADHI) which is equivalent to a 9.9 percent indirect ownership in BPI.

  Through this transaction, GIC and Ayala will effectively acquire 5.6 percent and 4.3 percent in BPI, respectively.

GIC’s investment is recognition of BPI’s long-term value and the Philippine economy’s strong fundamentals and growth prospects.

GIC, one of the world’s largest fund management companies, was established in 1981 to manage Singapore’s foreign reserves. Since its inception, GIC has grown from managing a few billion dollars to well over $100 billion today. GIC has investments across 40 countries and in assets such as equities, fixed income, real estate and private equity. GIC has been investing in emerging markets for over 20 years, with a network of offices in nine cities worldwide.

With this purchase, Ayala’s total ownership in BPI will increase to 48.3 percent from the current 44 percent.

“We thank DBS for the 14 years of partnership and support in BPI which undoubtedly contributed to BPI’s continued position as the premier financial institution in the Philippines,” Ayala chairman and CEO Jaime Augusto Zobel de Ayala said.

 â€œMoving forward, we are delighted to have GIC as part of the shareholder group of BPI.  GIC and Ayala both have a solid track record for making long-term investments and this partnership speaks to an alignment of values and goals as shareholders.  The entry of GIC also ensures the continuity of a stable and committed shareholder base for BPI,” he added.

DBS CEO Piyush Gupta said while the bank has been a strategic investor in BPI since 1999, this divestment is in line with DBS’ focus on its core markets.”

“We are pleased to have been part of BPI’s growth in the Philippines over the last decade and have a productive relationship with the Ayala Group. We believe that the transaction will have a positive outcome for all parties,” Gupta said.

For his part, Ayala president and COO Fernando Zobel de Ayala said: “This acquisition is both a value and earnings accretive investment for Ayala. BPI has been a significant growth driver for Ayala over the years and we believe its earnings growth momentum will continue in step with the expansion of the Philippine economy.”