San Miguel says Bank of Commerce stake sale ‘done’

MANILA, Philippines – San Miguel Corp. has finalized a deal with Malaysia’s CIMB Group Holdings Bhd on the sale of a majority stake in Bank of Commerce (BOC), the company’s president and COO Ramon Ang said Tuesday, June 11.

“They agreed finally yesterday (June 10). It’s completely done,” Ang told reporters in a press briefing following San Miguel’s annual stockholders’ meeting.

San Miguel signed a memorandum of agreement in 2012 to sell 58% of BOC to Malaysia’s second-largest lender for about P12 billion.

The deal is strategic for both parties. It will allow CIMB to enter the Philippine banking industry, and San Miguel to raise money for its expansion.

Ang said the transaction may be closed within 30 days in accordance with the terms and conditions agreed upon before.

“The price is the same as the last time,” he said.

The parties had eyed to complete the transaction in January, but issues related to BOC’s real estate assets delayed the deal’s closure. Foreigners are not allowed to own land in the Philippines.

In May, San Miguel confirmed a report that said CIMB wanted it to invest in a realty company where BOC’s assets would be transferred to.

“That’s settled. They didn’t ask us to invest with them anymore,” Ang said, without elaborating.

BOC is the Philippines’ 16th largest bank in terms of assets. It operates 122 branches and 300 automated teller machines across the country.

CIMB earlier said the bank’s addition to its portfolio would strengthen its position in the region.

CIMB has about $98 billion (P4 trillion) in assets, more than the combined assets of the top 3 Philippine banks.

San Miguel acquired control of BOC in 2009, two years after it announced it was going into high-growth and high-risk sectors like energy, mining, telecommunications and infrastructure. – Rappler.com