Ayala, Singapore fund acquire DBS stake in BPI

MANILA, Philippines – DBS Group Holdings Ltd., Singapore’s largest lender, has sold its remaining stake in Bank of the Philippine Islands (BPI), the Philippines’ third-largest bank by assets.

Ayala Corporation and Singapore’s sovereign wealth fund GIC Pte bought DBS’ 9.9% stake in BPI for P29.6 billion, Ayala told the Philippine Stock Exchange on Tuesday, November 12.

DBS is exiting the bank after 14 years to “focus on its core markets,” including Singapore, Hong Kong, China, Taiwan, India and Indonesia.

“We are pleased to have been part of BPI’s growth in the Philippines over the last decade,” said DBS chief executive officer Piyush Gupta. “We believe that the transaction will have a positive outcome for all parties.”

Ayala, BPI’s largest shareholder, acquired 4.3% of BPI, bringing its interest in the company to 48.3% from 44%. GIC acquired a 5.6% stake.

Ayala president and chief operating officer Fernando Zobel de Ayala said the acquisition is “a value and earnings accretive investment” for the company.

“BPI has been a significant growth driver for Ayala over the years and we believe its earnings growth momentum will continue in step with the expansion of the Philippine economy,” he said.

Last week, BPI announced it will raise capital of up to P25 billion by way of a stock rights offering. Ayala and GIC said they will support the initiative.

GIC is among the world’s largest fund management companies. It was established in 1981 to manage Singapore’s foreign reserves. – Rappler.com