Gokongwei Group to get more shares under Robinsons Bank merger

MANILA, Philippines — The Gokongwei Group is likely to get more shares under the planned merger of its banking arm with Ayala-led Bank of the Philippine Islands.

In a disclosure to the Philippine Stock Exchange (PSE), BPI said its board of directors approved the issuance of up to 318.91 million common shares to the Gokongwei Group pursuant to the merger with Robinsons Bank Corp.

In a separate disclosure to the PSE, JG Summit Holdings Inc. said  the shareholders of Robinsons Bank, including JG Summit Capital Services Corp. and Robinsons Retail Holdings Inc., would collectively hold approximately six percent of the resulting outstanding capital stock of BPI.

Based on data from the PSE, BPI has 4.92 billion issued shares at P99.55 per share. This means that six percent is equivalent to about 295,000 common shares.

“We would like to inform the Exchange that as of this date, the exact number of BPI common shares to be issued to JG Capital has not yet been firmed up and will be subject to final determination on or before closing date,” JG Summit said.

Last Sept. 30, both the board of directors of the two banks announced the merger between BPI and Robinsons Bank, with BPI emerging as the surviving entity.

The Ayala- and Gokongwei-led banks aim to complete their consolidation before the end of 2023 to unlock various synergies across several products and service platforms, as well as expand the customer and deposit base of both banks through the merged entity.

BPI president and CEO, Jose Teodoro “TG” Limcaoco earlier said the 171-year-old bank is excited about the transaction as it believes the merger exemplifies BPI’s strategic effort to expand its client base, and accelerate growth.

Limcaoco said in a statement that the merger would ultimately increase shareholder value through partnerships with the Gokongwei Group.

“We plan to effect a smooth transition and integration of RBC and its customers into BPI. Together, we aim to maintain quality banking services and offer additional best-in-class and innovative products to our expanded client base. We are also keen on strengthening our ties with the Gokongwei Group even more through various collaboration opportunities across the Gokongwei Group’s vast ecosystem,” Limcaoco said.

JG Summit Holdings Inc. president and CEO Lance Gokongwei,   said the Gokongwei Group has built and supported the growth of RBC from a small savings bank to become one of the fastest growing, full-service commercial banks in the country.

After reviewing the bank’s strategic options, Gokongwei, who is also chairman of RBC, said it is cognizant that banking is a scale game and will continue to require additional capital for growth.

“We believe that merging Robinsons Bank with BPI, which is one of the strongest and most profitable banks in the country, is the best path forward. This will give our customers access to a fuller range of banking products and services as the combined organization will leverage on ecosystems of both the Gokongwei and Ayala Groups,” Gokongwei added.

By capitalizing on BPI’s expertise and network, the merger would lead to enhancement of the overall banking experience of Robinsons Bank customers. Robinsons Bank’s products and services cater to its corporate, commercial, and retail clients through its 189 branches and branch-lite units, 354 ATMs, and online and mobile banking channels.