EastWest acquires 20% stake in bidder for railway fare system

MANILA, Philippines - East West Banking Corp. is investing in E-trans Solutions Joint Venture Inc., a company bidding for the government’s automated fare collection system project.

E-trans is a joint venture among TERA Investment Inc., Sagesoft Solutions Inc., Pilipinas Micro-Matrix Technology Inc., Pulsar Avancer Technologie Inc. and EastWest.

Recently, E-trans pre-qualified in the bidding for the fare system project of the Department of Transportation and Communications and the Light Rail Transit Authority.

EastWest’s board has approved a capital infusion of up to 20 percent in E-trans and subscribe to such number of shares for an initial payment of P1.5 million.

The board said the subscription is not more than 10 percent of the total assets of EastWest.

EastWest is the financial arm of the Gotianum family’s Filinvest Group.

Aside from investing in a technology firm, EastWest is also aggressively expanding its branch network all over the country.

In 2006, EastWest Bank bought P750 million worth of shares in Green Bank, which has 46 branches in June 2012, the bank purchased 100 percent of Finman Rural Bank Inc. in Pasig City for P120 million.

EastWest has been likewise on the acquisition mode to boost its consumer lending business. In 2009, it acquired the consumer finance units of AIG bundled into AIG Philam Savings Bank.  In 2003, it also bought Ecology Savings Bank Inc.

By 2014, EastWest is planning to have 350 branches and become the fifth largest bank in terms of network.