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Banco de Oro down on offer to buy Equitable PCI shares
Posted: 10:09 AM | May 23, 2005
BANCO de Oro Universal Bank was slightly lower in early trade after the lender said Friday it and certain other parties have formally offered to buy shares in Equitable PCI Bank held by EBC Investments Inc, dealers said.
Banco de Oro, majority-owned by retail tycoon Henry Sy, was second most active. It was down 0.50 peso or 1.75 percent at 28 on 110,000 shares.
Equitable PCI was untraded after closing at 48 pesos previously.
EBC Investments is the wholly-owned investment house subsidiary of Equitable PCI, the Philippines' third largest lender by assets.
According to financial data provider Technistock, EBC Investments owned about 78.8 million shares of Equitable PCI, representing a 10.8-percent stake, as of end-March.
Banco de Oro said it has offered to pay the higher of either 43.50 pesos per share or up to a 10-percent premium over the weighted average share price of Equitable PCI common shares as sold over the Philippine Stock Exchange over a period to be mutually agreed upon.
In a separate disclosure to the stock exchange, Equitable PCI confirmed it has received a letter from BDO dated May 19 relaying its offer to buy Equitable PCI shares held by EBC Investments. But it said it has yet to decide on the offer.
This is not the first time Banco De Oro has expressed interest in shares of Equitable PCI. It had earlier agreed to buy 187 million Equitable PCI shares held by state-managed pension fund Social Security System, accounting for 29 percent of the bank, for 43.50 pesos per share.
The deal, however, did not push through after some senators criticized the transaction for lack of transparency.
Doris C. Dumlao
Inquirer News Service
BANCO de Oro Universal Bank, the banking arm of mall magnate Henry Sy, is raising at least P11 billion to finance two standing offers to acquire a controlling 39-percent stake in Equitable PCI Bank.
In a briefing before BDO's stockholders' meeting Friday, bank president Nestor Tan said the bank was focused on getting a bigger slice of EPCIBank, the third biggest lender in the country, and was not keen on other banks on the auction block such as Philippine National Bank.
BDO has made an offer to acquire the 29-percent stake held by the state-owned Social Security System and, only recently, another 10 percent held by EBC Investments Inc.
The price offered to EBC Investments was P43.50 or a 10-percent premium over the weighted average share price of EPCIBank common shares as sold over the PSE over a period to be mutually agreed upon.
It was the same price earlier agreed upon with the SSS until closing of the deal was blocked by a group of retirees who were pushing for a public bidding of pension fund's stake.
"We are already in Equitable PCI. If the Supreme Court decides that it's a valid transaction, it has to be completed. It's an unfinished business," he said.
Tan said BDO was setting aside P8 billion in cash for the SSS stake and another P3 billion for the EBC Investments holdings.
"We're looking at not solely the bank [funding the acquisition], but a combination with the SM group. From the bank's side, it will be funded by equity and debt issue and we'll have very good support from minority shareholders. IFC [International Finance Corp.], I think, will be there," Tan said.
He said BDO was only awaiting a decision from the court on whether it could push through with the deal with SSS, whose 29-percent stake is the single biggest block in the bank.
Asked about the chances of EBC Investments accepting its offer given the hostility by some EPCIBank shareholders to BDO's entry in the bank, Tan said: "I don't know. We sent them two letters and we think our offer is quite firm."
"We'd like to negotiate as soon as possible. The point that some shareholders are not so keen on bringing in BDO, in a way that's true, so our transaction is to buy shares from a willing seller," Tan said.
BDO's takeover of a controlling stake in EPCIBank could make it the biggest banking conglomerate in the country.
The bank currently ranks 7th among the country's biggest with assets of P197.21 billion as of the first quarter, but combining its assets with China Banking Corp. (P120 billion) and BDO Private Bank (P15.43 billion), it would have P332.75 billion worth of assets.
BDO Private Bank is a wholly owned subsidiary of BDO while China Bank is majority-owned by the same principal stockholder, Henry Sy.
As a commercial banking group, Sy's bank now ranks third after Metropolitan Bank and Trust Co.'s P461 billion and Bank of the Philippine Islands' P386 billion (excluding their respective thrift bank units PSBank and BPI Family Bank).
Sir Yamada, sorry kung mali ang aking drawing.
I have a question. If ever BDO + CHIB + EPCI are merged into a super BDO, what happens to the listed entities of CHIB and EPCI, will they be delisted from the PSE? What happens to the shares of those companies, will they be converted to BDO shares?
Banco de Oro approves stock plan for executives
Posted: 4:41 PM | Aug. 30, 2005
BANCO de Oro Universal Bank said its board of directors has approved a proposal to establish an Executive Stock Plan for the bank's senior officers, subject to final presentation by management of the specific guidelines and mechanics of the plan.
No other details were given.
In the same disclosure to the stock exchange, BDO said Josefina Tan resigned as bank director effective August 27, ahead of her appointment as a director of Equitable PCI Bank.
BDO and parent SM Investments Corp., both controlled by retail tycoon Henry Sy, early this month bought the Go family's 24.76 percent stake in Equitable PCI, the country's third largest bank by assets.
BDO, the eighth largest, plans to merge with Equitable PCI sometime in the future.
By Donnabelle L. Gatdula
The Philippine Star
The Monetary Board (MB), the policy-making body of the Bangko Sentral ng Pilipinas (BSP), is likely to approve soon Banco de Oro Universal Bank’s acquisition of the 66 branches of United Overseas Bank (UOB).
"It’s just a matter of time. We expect the MB to discuss the application soon. Definitely, the MB decision will be out within the year," BSP Deputy Governor Nestor Espenilla said yesterday.
Espenilla said the main concern on the BDO’s acquisition of UOB branches is "the acceptance of a structure."
"There are some clarifications that need to be discussed. But this is just a matter of process and time," he added.
BDO president Nestor Tan said if the MB will approve the purchase, they expect to operate the 66 UOB branches in the first quarter of 2006.
At present, BDO has 185 branches. As of March 2005, BDO ranks seventh largest bank in the Philippines in terms of assets with P197.2 billion.
BDO is controlled by retail tycoon Henry Sy, whose group operates the Philippines’ largest shopping mall chain.
United Overseas Bank Ltd. (UOB), Singapore’s second-largest bank, sold all but one of the branches in its loss-making Philippines operations to BDO for P600 million ($11 million).
UOB sold 66 of its 67 branches to BDO to concentrate on its plan to put more focus on the wholesale banking business.
In 1999, UOB paid P3.3 billion ($82.5 million) for 60 percent of the Philippines-based Westmont Bank.
It later renamed it UOB Philippines. UOB Philippines incurred a loss of S$21.2 million ($12.9 million) last year and a S$19.7 million loss in 2003. UOB earned a net profit of S$1.54 billion in 2004.
Henry Sy-led Banco de Oro Universal Bank yesterday said that its
acquisition of 66 branches of United Overseas Bank Philippines has obtained
In a filing with the stock exchange, the bank said that United
Overseas Bank "today informed us that it has received written confirmation
from the Bangko Sentral ng Pilipinas that the Monetary Board has approved
the subject transaction."
Banco de Oro President Neston Tan told the exchange on Wednesday that
if the Monetary Board okays the purchase, the bank expects to operate the
new branches in the first quarter of 2006.
Banco de Oro is the country's eighth largest bank in assets. Its
owner, also controls China Banking Corp. and has recently bought out the
Gos in Equitable PCI Bank.
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