China Bank-Plantersbank merger OK’d

MANILA, Philippines - The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), has approved in principle the merger between Planters Development Bank and China Banking Corp.

The approval gives the two banks three years to complete the merger process, allowing Plantersbank to consolidate its resources with either China Bank or Chinabank Savings Inc. (CBSI).

In September last year, SM-controlled Chinabank acquired 84.77 percent of the capital stock of Plantersbank representing 67.13- percent stake of the Tambunting family and the 17.67-percent interest of Dutch development bank FMO.

Upon MB approval and execution of the share purchase agreement, Chinabank said it would make a voluntary tender offer for the remaining 15.23 percent of the outstanding capital stock of Plantersbank at substantially the same terms and conditions as indicated in the share purchase agreement.

Chinabank is currently the eighth largest bank in the country with P346 billion in assets. With Plantersbank’s P52.7 billion assets,  the acquisition may bring Chinabank’s standing in the banking industry one notch higher.

From 148 branches in 2006 at the start of its expansion program, Chinabank now has a total network of 333 branches, complemented by 544 ATMs nationwide.  The merged group will have a combined network of at least 411 branches.

Plantersbank, owned by the family of Amb. Jesus Tambunting, is the Philippines’ largest privately owned and managed development bank and the acclaimed leading bank for small and medium enterprises.

The thrift bank has total assets of over P50 billion and ranks 22nd out of 37 commercial and universal banks and over 800 thrift and rural banks.

Chinabank said the deal would combine the resources of the country’s leading bank for SMEs (small and medium enterprises) with a 93-year old universal bank with the longest history of supporting entrepreneurs in the country and a solid track record of financial strength and stability.

The Plantersbank deal bolsters Chinabank’s current strategy in two areas – growing its middle market/SME portfolio and its network expansion program.

The China Bank Group includes Chinabank, China Bank Savings (CBS), Unity Bank, CBC Insurance Brokers Inc., and bancassurance affiliate Manulife China Bank Life Assurance Corp. (MCBLife).