MANILA, Philippines - China Banking Corp. has approved the acquisition of the remaining 1.32 percent of Plantersbank to complete its ownership of the SME-oriented thrift bank.
Chinabank already owns 98.68 percent of Plantersbank after a successful tender offer in the middle of the year.
Thrift bank unit China Bank Savings (CBS) will be the surviving entity as it will absorb the operations of Plantersbank.
Both CBS and Plantersbank operate separately more than 50 branches each.
Bank sources said the complete merger would likely be realized next year as “there were still a number of issues that have to be addressed such as taxes and accounting.”
Meanwhile, Carlos M. Borromeo, erstwhile Plantersbank president, has been named chief financial officer (CFO) and head of financial management of Chinabank.
Before joining Plantersbank, Borromeo was CFO of Security Banking Corp.
Chinabank senior vice president Alberto Emilio V. Ramos, meanwhile, was appointed by the board of directors to a seat in Manulife China Bank Life Assurance Corp. (MCBL), the bancassurance joint venture between the bank and Manulife Financial Philippines. Ramos is also CBS president.
By the end of 2014, CBS will be operating 104 branches, 76 coming from its existing branch network and the rest from the activated branches of Plantersbank.
Due to the acquisition of Plantersbank, CBS will get an additional deposit base worth P43.8 billion, loan portfolio of P33.5 billion, and an even larger SME portfolio.
The thrift bank of Chinabank presently has a retail mix of 75-percent consumer and 25-percent small and medium enterprise (SME) lending portfolio. The target is to reverse the mix in favor of SMEs by next year.