BPI, Robinsons Bank merger gets BSP OK

MANILA, Philippines — The merger between Ayala-led Bank of the Philippine Islands (BPI) and Gokongwei-owned Robinsons Bank Corp. has received the green light from the Bangko Sentral ng Pilipinas (BSP).

In a disclosure to the Philippine Stock Exchange (PSE), BPI said the central bank’s Monetary Board issued Resolution 1633 last Dec. 14, approving the merger between the two banks.

BPI is the surviving bank after the merger.

In separate disclosures, JG Summit Holdings Inc. and Robinsons Retail Holdings Inc. said they received a copy of the letter from the BSP last Dec. 15, notifying the parties of the approval of the merger by the Monetary Board.

The Ayala-led bank executed a supplemental to the plan for merger with the Gokongwei-owned bank last Oct. 20 to comply with the requirements of the Securities and Exchange Commission (SEC).

JG Summit Capital Services Corp. controls a 59.99 percent stake in Robinsons Bank, while Robinsons Retail owns 39.99 percent.

Upon completion of the merger, the Gokongwei Group will get an additional six percent stake in BPI.

Last January, RRHI spent nearly P20 billion to acquire the 4.4 percent interest in BPI from Arran Investment Pte Ltd, an affiliate of Singaporean state fund GIC Private Ltd.

Aside from providing the number of shares to be issued in favor of the Robinsons Bank shareholders, BPI also updated the percentage of ownership of Robinsons Bank in GoTyme Bank Corp. that was reduced to 18 percent from 20 percent and in Unicon Insurance Brokers Corp. that also went down to 17.13 percent from 40 percent.

Last September, the Philippine Competition Commission (PCC) approved the merger between BPI and Robinsons Bank.

The approval came after BPI president and CEO Jose Teodoro “TG” Limcaoco and Robinsons Bank president and CEO Elfren Antonio Sarte signed the revised plan of merger last Sept. 5 to take into consideration the comments of the BSP on the planned consolidation of the two banks.

The 172-year old bank was earlier looking at October as the earliest month for the completion of the merger or the start of January next year.

“The timetable for implementation of the merger cannot be fixed at this time as the same is subject to regulatory approvals,” BPI earlier said in the disclosure.

The board of directors of BPI, JG Capital and RRHI approved the original plan of merger on Sept. 30, 2022.

Through the consolidation, BPI is expected to unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, at the same time, by capitalizing on BPI’s expertise and network, enhance the overall banking experience of Robinsons Bank customers.

It would also be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group.