Malayan Bank hikes Phl stake

MANILA, Philippines - Mayban IB Holdings Sdn. Bhd has finally taken complete control of the ATR Kim Eng group with the full acquisition of Kim Eng Holdings Ltd. of all common shares of ATRKE KimEng Financial (ATRKE Financial).

Mayban IB Holdings is a subsidiary of Malayan Banking Berhad (Maybank), one of the biggest banks in the region.

ATR KimEng Financial reported that its two major shareholders, ATR Holdings and Kim Eng Group, had entered into a conditional sale and purchase agreement under which ATR Kim Eng, which already owns a 42.4 percent equity stake in ATRKE Financial, will acquire from ATR Holdings all of the issued common shares held by ATR Holdings in the company representing a 32.2-percent equity stake in ATRKE Financial, for a total consideration of approximately P1.5 billion, based on an adjusted purchase price of P4.38 per sale share.

Through the acquisition, Kim Eng Group became the controlling shareholder in ATRKE Financial, owning 74.6 percent of the total number of issued common shares.

Under the terms of the agreement, ATR Holdings will continue to partner with Kim Eng Group in the businesses of investment banking, stock brokerage, asset management, insurance, and real estate. 

ATR’s principals, namely, Ramon Arnaiz, Manuel Tordesillas and Lorenzo Roxas, who are also the key senior management personnel of ATRKE Financial, have agreed to stay on and manage these businesses.

ATRKE Financial president and chief executive officer Manuel Tordesillas said that the consolidation by Kim Eng is intended to maximize the benefits of the synergies that can be derived from the acquisition by Mayban IB Holdings earlier this year. 

“This will allow Maybank Philippines and ATRKE Financial to take all our businesses to the next level,” Tordesillas added.

It likewise signals the substantial growth in commitment by Maybank to the Philippines, as well as unveils Maybank’s strategy of developing its pan-ASEAN financial services platform.

At the end of last year, Maybank infused an additional $50 million into its Philippine subsidiary, thereby strengthening Maybank’s ability to capitalize on emerging business opportunities in the Philippines.

Maybank is a leading financial services provider in Malaysia offering an extensive product and service range, which includes commercial banking, investment banking, stock broking, insurance and takaful, asset management and others, with 2010 total equity of $9.1 billion and a group asset base of more than $100 billion. 

Apart from being the leading financial institution in Malaysia, Maybank established a leading presence in key ASEAN markets, including Singapore, Indonesia and the Philippines. It has over 1,750 branches and offices in 14 countries, 40,000 employees and serves over 18 million customers.