Lucio Tan-led PNB, Allied Bank eye merger by Q2

MANILA, Philippines – The long-delayed merger of two Lucio Tan-led commercial banks is expected to take effect in the 2nd quarter of 2012, listed Philippine National Bank (PNB) reported.

In a disclosure to the stock exchange on Tuesday, March 6, PNB said its board as well as Allied Banking Corporation’s held separate special stockholders meeting to approve their merger “after securing all necessary approvals from the regulators.”

“Upon merger, PNB will be the 4th largest private domestic bank in the Philippines with a combined distribution network of 650 branches nationwide and with total assets of over Php 500 billion,” the listed bank said in the disclosure.

“lt further strengthens its overseas presence as the bank with the largest international footprint across Asia, Europe, the Middle East and North America,” it added.

It added that PNB will be the surviving entity while Allied Bank president Anthony Chua overseeing the merger preparations and leading the  lntegration team.

The merger involves a share-for-share exchange, with PNB issuing 130 shares for every Allied Bank common share; and 22.763 PNB shares for every Allied Bank preferred share. PNB shares will be issued at P70.00 per share.

The merger has been delayed due to issues hounding Allied Bank, which had shares that were sequestered by the Presidential Commission on Good Government, a state agency tasked to recover wealth acquired illegally during the administration of strongman and former President Ferdinand Marcos.

PCGG had earlier blocked the PNB-Allied Bank merger. – Rappler.com