RCBC: No talks with BDO, BPI on merger, sale of majority stake

MANILA, Philippines – Yuchengco-led Rizal Commercial Banking Corporation (RCBC) denied rumors that it is on the auction block, with two of the country’s biggest banks eyeing it.

In a letter to the Philippine Stock Exchange (PSE) on Friday, October 27, RCBC said “it is not in talks or discussions with anyone regarding the sale of a majority stake or any merger.”

“Information other than those disclosed by the Bank is purely speculative,” it added.

The bank was responding to a Philippine Daily Inquirer report that the bank could be potentially up for sale and that its biggest rivals – Sy-led BDO Unibank Incorporated (BDO) and Ayala-led Bank of the Philippine Islands (BPI) – are reportedly interested.

Both banks also denied the rumors in separate disclosures to the stock exchange.

BDO said while it “has always been open to accretive acquisitions which will help it achieve growth and efficiencies, there are, however, no definite discussions regarding an acquisition of or investment in RCBC.”

In May, another Sy family-affiliated firm, China Bank Corporation, also denied rumors of a planned merger with RCBC.

BPI, for its part, said  that “it would like to inform the PSE that BPI is not in discussions with RCBC or its shareholders.”

RCBC drew much flak last year when it became embroiled in the $81- billion Bangladesh Central Bank heist. The Bangko Sentral ng Pilipinas meted a record P1-billion fine on the bank.

Despite this, the bank has seen an upturn in its stock price in recent months, going from around P40 in April to around P65 in early June before settling at around P60 in recent days, fueling the merger or sale rumors.

RCBC is the country’s 10^th biggest bank with total assets of around P427 billion. – Rappler.com