China Bank raises stake in thrift unit

MANILA, Philippines - Listed China Banking Corp. of retail and banking magnate Henry Sy Sr. is raising its stake in its thrift bank unit through the acquisition of the holdings of minority shareholders.

China Bank vice president and corporate secretary Corazon Morando informed the Philippine Stock Exchange (PSE) the bank’s board of directors approved last Wednesday the acquisition of 2,034 shares of China Bank Savings Inc.

Morando said the shares are being acquired through a negotiated transaction with shareholders who had already signified their intention to sell their shares.

Morando said the transaction would be subject to verification of the shareholdings and compliance of shareholders with the bank’s other requirements.

The listed bank bought out the 87.51 percent stake of the Puyat family in the The Manila Banking Corp. in 2007. The thrift bank was renamed China Bank Savings in 2008.

Since then, China Bank has been pursuing the complete takeover of China Bank Savings by offering to buy the holdings of minority shareholders.

Prior to the most recent transaction, China Bank owned 98 percent of China Bank Savings.

The Sy-led bank has been gobbling up smaller banks to fast track its expansion nationwide. It acquired Unity Bank in 2012 and Planters Development Bank (Plantersbank) in 2014.

In January last year, China Bank implemented the share purchase agreement to acquire Plantersbank worth P1.86 billion.

Under the agreement, China Bank spent P1.579 billion to purchase the 84.77 percent capital stock owned by the Tambunting family and related parties, and the Dutch development bank FMO.

The remaining amount was used to buy out the 15.23 percent interest owned by other shareholders including Asian Development Bank (ADB), Korea Development Bank, Development bank of the Philippines (DBP), Land Bank of the Philippines, and International Finance Corp. (IFC).

The Bangko Sentral ng Pilipinas is requiring the China Bank Group to complete the merger of China Bank Savings and Plantersbank within one year.

The China Bank Group also includes CBC Insurance Brokers Inc., and Bancassurance affiliate Manulife China Bank Life Assurance Corp. (MCBLife).