BTMU buys 20% of Philippines’ Security Bank

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ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/aec/BTMU-buys-20-of-Philippines-Security-Bank-30276920.html

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Philippine Daily Inquirer  THU, 14 JAN, 2016 6:30 PM

Manila – Security Bank has taken in Japanese banking giant Bank of Tokyo-Mitsubishi UFJ as a strategic partner with a 20 per cent stake, resulting in fresh capital infusion of 36.9 billion peso for the local bank.

The core banking unit of Mitsubishi UFJ Financial Group (MUFG) signed on Thursday a deal to buy 150.7 million newly issued common shares of Security Bank at 245 peso per share, marking a hefty premium over Wednesday’s closing price of 135 peso per share.

The Japanese group is also buying 200 million preferred shares at P0.10 per share, bank officials announced in a press briefing on Thursday.

The deal was priced at 2.8 times Security Bank’s book value as of end-September 2015.

The 36.9-billion peso transaction is expected to be completed within the first half of 2016, subject to regulatory approval in the Philippines and condition precedents. Once completed, the transaction will be the largest equity investment in a Philippine financial institution by a foreign investor.

The deal will increase Security Bank’s shareholder capital from 52.4 billion peso as of September 2015 to 89.3 billion peso on a pro-forma post-transaction basis.

“We are elated to have BTMU as a strategic shareholder and business partner. The transaction will position Security Bank as a large independent bank supporting the growth of the Philippine economy,” said Security Bank chair Alberto Villarosa.

“The additional capital will help us execute faster and with more scale our strategy to build our retail banking business as a third business pillar alongside Wholesale Banking and Financial Markets. It will allow us to accelerate the expansion of our branch network to support retail market penetration as well as make inroads into the Japanese business sector,” said Alfonso Salcedo Jr., president of Security Bank.

Security Bank’s shares rose by 6.67 per cent to close at 144 perso per share on Thursday after the deal was announced.

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