IFC to sell Plantersbank stake to Chinabank

MANILA, Philippines - International Finance Corp. (IFC), the private sector investment arm of the World Bank Group, has confirmed the sale of its stake in Planters Development Bank to China Banking Corp.

“Chinabank will buy us out. We are willing to dispose it. That’s a very small (share),” IFC representative to Manila Jesse Ang told The STAR.

He said they are currently firming up details of the acquisition and would finalize the sale soon.

“They (Chinabank) have a process. They are doing the big ones first then the small shareholders. We have less than one percent in Plantersbank,” he pointed out.

Chinabank earlier announced it would acquire via negotiated sale the additional 1.961 million shares or 15.23-percent stake in Plantersbank beneficially-owned by Capital Shares & Investment Corp. for P283.7 million.

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

Chinabank said it would also acquire via voluntary tender offer the remaining 13.59-percent shares in Plantersbank, including that of the IFC, at substantially the same terms and conditions as indicated in the sale deal.

Last month 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.

Aside from Plantersbank, IFC has equity exposures in various financial institutions such as BDO Unibank Inc., Bank of Philippine Islands, Rizal Commercial Banking Corp. (RCBC) and PR Rural Bank of Nueva Ecija.

Ang said they are eyeing to acquire more rural banks in the near future.

“Our 2014 plan include investments in financial institutions. The financial sector is very important to us. We are looking at big rural and microfinancing institutions,” he said.

The IFC executive said they would continue to evaluate investment infrastructure opportunities in renewable energy, Public-Private Partnership (PPP) program and other infrastructure projects.