For every Globalbank share surrendered, the stockholder will get 1.973173 shares of Metrobank. The basis for the swap deal is the book value of Metrobank shares which is recorded at P31.292478 compared to that of Globalbank whch is P61.745476.
According to Metrobank president Antonio S. Abacan Jr., the swap deal is designed to allow Metrobank to implement a smooth integration or functional merger of the two banks.
"The exchange is intended to ensure that Globalbank shareholders will be in the same position as they would have been had a legal and statutory merger been effected between the two banks," Abacan added.
The plan would dispense with the statutory merger and thus allow Metrobank to immediately integrate the operations of Globalbank with that of Metrobank through the acquisition of all assets of Globalbank and the assumption of all Globalbank liabilities.
Globalbank is actually a subsidiary of Metrobank. However, a merger was initiated since the two allied banks were competing for the same market.
Earlier, Globalbank had considered selling its license to operate until Metrobank decided to implement the swap deal.
The Bangko Sentral ng Pilipinas (BSP) approved the swap and merger deal after it allowed the Globalbank minority share holders an option to acquire Metrobank shares by surrendering their Globalbank holdings.– Ted Torres