Chinabank offers to buy remaining Plantersbank stake

MANILA, Philippines - China Banking Corp. (Chinabank), a banking unit of SM Group, has started negotiations for the purchase of the remaining 15.23 percent of Planters Development Bank.

In a disclosure to the Philippine Stock Exchange, Chinabank said its board has approved the acquisition via negotiated sale of the additional 1.961 million shares beneficially-owned by Capital Shares & Investment Corp. but still under the name of Asian Development Bank at the same price and substantially the same terms as indicated in the share purchase agreement (SPA).

After the acquisition, the bank’s holdings in Plantersbank will increase to 86.41 percent from the initial 84.77 percent.

The bank earlier announced the acquisition of the remaining 15.23 percent common stock would amount to P283.7 million.

Further, the board also approved the further acquisition via voluntary tender offer of the remaining 13.59 percent shares of Plantersbank at substantially the same terms and conditions as indicated in the SPA.

Last month, Chinabank paid P1.58 billion for the purchase of 84.77 percent stake of Plantersbank.

Under the SPA, Chinabank paid P1.58 billion or 84.77 percent out of the total amount of P1.863 billion for the 100 percent stake acquisition of Plantersbank.

The 84.77 percent capital stock is owned by the group of former Amb. Jesus Tambunting and Dutch development bank FMO.