MB okays SMIC purchase of Go family’s stake in EPCIB

SM Investments Corp. (SMIC), the investment holding company of retail tycoon Henry Sy, has secured the approval of the Monetary Board (MB) for the purchase of the Go family’s 24.76-percent stake in Equitable PCI Bank and 10 percent shareholdings in Equitable Card Network.

The MB’s seal of approval paved the way for the sale of the Go family’s 180 million shares in EPCI Bank via the stock market. Each share was sold at P56.50, amounting to a total of P10.2 billion.

The Equitable Card Network deal, on the other hand, is valued at around P600 million. It is the country’s largest credit card network.

Prior to the deal, the SM Group already had a 2.5-percent stake in EPCI Bank. The acquisition of the Go family’s stake would be funded by internal funds.

The sale has put an end to the dispute between the founding Go family and other shareholders, including state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS), who together hold a controlling stake in the bank.

The battle for control of EPCI Bank’s board came to a head last month when groups led by the GSIS and SSS and the Go family formed separate boards of directors.

If it gets to acquire a controlling stake in EPCI Bank, the SM Group earlier said the bank would be merged with its banking arm Banco de Oro (BDO).

EPCI Bank, for one, was a product of the merger between Equitable Bank and PCI Bank, while BDO was established by the Sy Group.

BDO president Nestor V. Tan admitted that a merger plan is among the bank’s long-term programs.

If given the chance to push through with an earlier deal with the SSS that was stalled in court, Tan said the SM group is willing to buy the SSS stake at a renegotiated price.

GSIS president Winston Garcia, for his part, said the pension fund would consider selling out only if given an offer above its acquisition cost.