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MANILA, Philippines – The country’s oldest conglomerate, Ayala Corp., boosts its stake in its banking arm to over 40% after buying a portion of the stake held by Singapore’s DBS group.
The P25.6-billion deal for a 10.4% additional interest in Bank of the Philippine Islands (BPI) reflects Ayala’s confidence in the growth potential of the bank amid the anticipated expansion of the Philippine economy, said the conglomerate’s president and COO Fernando Zobel de Ayala.
“We believe this is a value and earnings accretive acquisition for Ayala given our view on the growth trajectory of the bank over the medium term,” noted Zobel.
Southeast Asia’s largest lender DBS said the sale strengthens its capital position ahead of the introduction of Basel III in Singapore in 2013.
The deal brings Ayala’s interest in BPI to 44% from 33.6%, and dilutes DBS’ to just 9.9% from 20.3%.
DBS, which has held part of BPI since 1999, “will continue to be a valuable strategic partner in the governance and management” of the bank, said Ayala chairman and CEO Jaime Augusto Zobel de Ayala. – Rappler.com
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