9 groups show interest in Equitable PCI Bank

Nine prospective investors have signified their interest in investing in Equitable PCI Bank, according to a statement released by the bank yesterday.

Equitable PCI Bank president and CEO Wilfrido V. Vergara said that from the nine possible investors, a short list will identify the proposed investors who meet the bank’s objectives and a due diligence will shortly follow.

Earlier, six groups were reported to have signified their intention to acquire or merge with the bank. Among these, four were identified, namely Rizal Commercial Banking Corp. (RCBC), Metropolitan Bank and Trust Co., US-based Newbridge Capital and a Taiwanese financial institution, the Fubon Group.

The Yuchengco-owned RCBC, now the country’s eighth largest bank, reportedly made a non-binding offer to merge with Equitable PCI Bank. RCBC is known to have been on a buying binge lately, having proposed to acquire the debt-saddled Philippine National Bank (PNB).

The short list was completed based on the recommendations of financial advisers ING Barings and JP Morgan.

Equitable PCI Bank, the country’s third largest bank, has a book value of close to $1 billion and has a customer base of more than 1.9 million .

"Interested investors showed in their indicative proposals their preference to invest in a significant minority stake in the bank or a merger. The majority of the proposals favors a strategic investment with management participation," Vergara said.

He said the investment is expected to enable the bank to become a formidable competitor and put it in a strong position to become the leader in the industry.

George Go owns a 34-percent direct stake and another five-to 10-percent indirect stake in Equitable PCI Bank while his strategic partners, GSIS and SSS, own 12 percent and 23 percent, respectively.

Meanwhile, the GSIS said it is willing to sell its entire 12-percent stake in the bank, representing one board seat, for the right price.