Citystate Savings sells shares to Hong Kong firm

MANILA, Philippines — Hong Kong-based CSC Holdings Ltd. is acquiring a 26.8-percent stake in Citystate Savings Bank Inc. for at least P735.9 million.

In a disclosure to the local bourse, the bank said some of its stockholders have entered into a share purchase agreement with CSC Holdings’ wholly-owned subsidiary CS Capital Investment Pte. Ltd.

The sellers including the estate of Ambassador Antonio Cabangon Chua, Feorelio Bote, Ronaldo Zamora, Angelita Jose, Eternal Plans Inc. Aliw Broadcasting Corp., AMB. Alc Holdings & Management Corp. and Top Ventures Investments & Management Corp. are selling 43.36 million shares equivalent to a 26.8-percent interest in Citystate Savings Bank.

“The entry of CSC establishes a strategic partnership between the controlling shareholders of the bank and CSC, whereby the bank will benefit from the global experience, market reach, and technological resources of CSC,” the thrift bank said.

This is in line with the mandate of the Bangko Sentral ng Pilipinas (BSP) and bank’s own direction toward digitalization, it said.

“The completion of the transaction is subject to certain dosing conditions, including the approval of the Monetary Board of the BSP,” the bank added.

In a separate filing with the Hong Kong Stock Exchange, CSC said the bank is looking to sell 43.3 million subject shares at P16.97 apiece, provided that the purchase price would not exceed P750 million.

“The Group has been actively considering and exploring various opportunities for the investment projects and to broaden the scope of investment according to the market conditions with an aim to enhance shareholders’ value,” CSC said.

CSC said that the acquisition was a “strategic investment” and a “first step to implement financial business investment strategy.”

“It also represents the effort of the Group to enter into mainstream financial business world and lays out the business map for the Group in Southeast Asia, which has a great development potential,” it added.

Citystate Savings Bank the 19th largest thrift bank in the country in terms of assets with P5.53 billion and 17th in terms of stockholder’s equity with P1.05 billion as of end-March.