Chinabank pays P1.58 B for control of Plantersbank

MANILA, Philippines - China Banking Corp. (Chinabank), a banking unit of the SM Group, has completed the purchase of a controlling 84.77 percent stake in Planters Development Bank for P1.58 billion, a bank disclosure to the Philippine Stock Exchange (PSE) said.

Under a share purchase agreement (SPA), Chinabank said it has paid P1.58 billion out of the total amount of P1.863 billion for the full acquisition of Plantersbank.

The 84.77 percent capital stock are owned by the family of former Amb. Jesus Tambunting and the Dutch development bank FMO. 

The acquisition of the remaining 15.23 percent percent common stock for P283.7 million will be made through a tender offer, Chinabank said. 

Based on audited financial statements as of Dec. 31, 2012, Plantersbank equity net of PFRS-related adjustments stood at P919 million.

At the ensuing special stockholders’ meeting, Tambunting and Carlos Borromeo were re-elected to the new Plantersbank board as chairman and president, respectively.

With Plantersbank now part of the China Bank Group, China Bank is now the fifth largest private universal bank in the country with P410 billion in assets as of Sept. 30, 2013. 

It closed 2013 with 368 branches – 295 for the main bank and 73 for the savings bank. With the addition of Plantersbank’s 78 branches and two unopened licenses, the combined branch network now stands at 448 branches – well over the 400-branch network target of China Bank for 2014.

The strategic partnership represents opportunities for Chinabank to expand its SME portfolio and geographic footprint. 

Plantersbank is the country’s largest private development bank and leading bank for SMEs with total assets of P54 billion, total loan portfolio of P33 billion, and deposits of P44 billion as of June 30, 2013.

The China Bank Group includes Chinabank, China Bank Savings, Unity Bank, China Bank Insurance Brokers Inc., and bancassurance affiliate Manulife China Bank Life Assurance Corporation (MCBLife).