EPCIB starts asset disposal ahead of merger with BDO

Equitable PCI Bank (EPCIB) has started winding down its business with the planned sale of assets, termination of contracts and services, and disposal of equity assets in preparation for its merger with Banco de Oro Universal Bank (BDO).

EPCIB corporate secretary Sabino Acut Jr. said in a report to the regulators that the EPCIB board has ordered its management to sell the bank’s equity investments in both publicly-listed and non-listed corporations.

The board also ordered the sale or dissolution of certain non-operating non-stock companies under its management.

Some of its existing subsidiaries will likewise be consolidated in line with integrating these companies with parrallel companies run by BDO.

To be consolidated are PCI Automation Center Inc. and Equitable Data Center Inc., two information technology subsidiaries. Equitable Exchange Inc. will be absorbed by its parent firm EBC Investments Inc.

PCI Capital Corp. and EBC Capital Corp. will also be merged, but its continued existence will depend on the new bank management.

Last December, the board dissolved Equitable Card Network Inc. with its business to be absorbed by the credit card unit of BDO.

Also this month, BDO applied to list additional 1.3 billion common shares with a par value of P10 to cover the merger with EPCIB. This will be done at an exchange ratio of 1.8 BDO shares for every EPCIB shares.

In turn, the corresponding number of EPCIB common shares will be delisted simultaneous with the listing of the BDO shares.

The completion of the merger and integration is expected within this year.