SEC OKs PNB-Allied Bank merger via share swap

MANILA, Philippines - The Securities and Exchange Commission has approved the share swap deal between Philippine National Bank and Allied Banking Corp. as part of the merger of the two Lucio Tan-owned banks.

Under the plan, PNB shall issue new shares to the shareholders of Allied Bank.

The SEC en banc approved PNB’s registration of 423.96 million common shares with a par value of P40 per share.

“The shares shall be issued by PNB by way of a primary offer to the shareholders of Allied Bank whose merger with PNB was approved by the SEC on Jan. 17 using the exchange ratio of 130 PNB common shares for each Allied Bank common share and 22.76 PNB common shares for each Allied Bank preferred share, the SEC said.

In 2012, the respective shareholders of PNB and Allied Bank, representing at least two thirds of the outstanding capital stock of both banks, approved the amended terms of the plan of merger.

On Aug. 2, 2012, the central bank’s Monetary Board issued a resolution giving its consent to the merger.

Similarly on Jan. 17, 2013, the SEC approved the merger.