MANILA, Philippines - The Bangko Sentral ng Pilipinas has approved Puregold owner Lucio Co’s entry into the Philippine Bank of Communications (PBCom).
In a disclosure to the Philippine Stock Exchange, PBCom said the BSP approved last week P.G. Holdings Inc.’s subscription to 181.08 million newly issued common shares of the commercial bank at P33 apiece.
The subscription enables Co to gain a 37.7 percent interest in PBCom, making him the bank’s single biggest shareholder.
“PBCom and P. G. Holdings Inc. will now proceed to execute the necessary agreements for this subscription,” the disclosure said.
The share sale came following PBCom’s announcement in June that it is planning to raise capital through a stock rights offer, the issuance of capital instruments, and through a private placement.
PBCom saw its net income decline by 45 percent to P190.43 million in the first half due to the absence of trading gains, among others.
The bank said it is fasttracking its expansion program this year through the addition of eight new branches to its existing 72. At the same time, PBCom said it wants to operate a total of 10 other banking offices (OBOs) and 200 automated teller machines by year-end.
The bank has also acquired Laguna-based Rural Bank of Nagcarlan, Inc. and 90 percent of Banco Dipolog, Inc. whose branches are located in Mindanao and Visayas. The purchases were meant to expand the bank’s market reach in the countryside and increase lending to the small and medium enterprises.
Co, through listed Cosco Capitl Inc., has interests in retail through Puregold Price Club Inc., liquor distribution, oil storage and real estate. The listed holding firm recently ventured into non-food retailing with the acquisition of Office Warehouse Inc. and Liquigaz Philippines Inc.