BDO completes acquisition of largest rural bank
MANILA, Philippines – BDO Unibank Incorporated has completed the takeover of the largest rural bank in the Philippines.
The bank has acquired 99.59% of the outstanding capital stock of Davao City-based One Network Bank Incorporated (ONB) through the completion of a share swap transaction on Wednesday, July 21, BDO corporate information officer Elmer Serrano said in a disclosure to the stock exchange. (READ: BDO eyes Mindanao expansion through ONB buyout)
“The acquisition of ONB expands the regional presence of BDO in the country, particularly in its target market in the southern Philippines and opens up business lines for BDO,” Serrano said.
BDO president and CEO Nestor Tan earlier said the acquisition offers access to Mindanao and Visayas that are not yet fully penetrated by the SM Group’s universal bank.
“It’s more to take advantage of economic growth in the provincial areas. They are relatively under-served,” Tan said.
BDO was originally known as Acme Savings Bank before it was acquired by the SM Group in 1976. In May 2007, BDO merged with Equitable PCI Bank to form the country’s biggest bank.
Apart from the Consunji family's ONB, BDO has also acquired GE Money Bank and Amex Savings Bank Philippines, the Rural Bank of San Juan, the trust business of Deutsche Bank of the Philippines, and Citi Savings Bank.
ONB went through the consolidation of 3 of the most profitable rural banks in the country: Rural Bank of Panabo, the Consunji-led Network Rural Bank (Davao), and Provident Rural Bank of Cotabato in 1996.
BDO crossed in favor of the selling shareholders of ONB a total of 64.5 million listed common shares and issued an equal number of new shares from its unissued capital stock in a top-up and borrowing transaction with a substantial BDO shareholder.
In exchange, BDO acquired up to 247.37 million common shares of ONB and 20,560 government preferred “A” shares with a par value of P10 ($0.22) per share.
This translated to an exchange of .2618 BDO share per one ONB share. Shares of BDO Tuesday gained 1.45% to P105 ($2.32) per share.
In closing its acquisition of ONB, BDO conducted a tender offer to the minority shareholders of ONB in compliance with the requirements of the Securities and Exchange Commission (SEC). ONB is deemed a public company with over 1,700 shareholders.
Total assets of ONB stood at P28.1 billion ($620.95 million) while net loans amounted to P19.7 billion ($435.22 million) as of end-September 2014. ONB is the biggest rural bank in the country and has 105 branches and micro-banking offices in Mindanao and Panay.
BDO has total assets at P1.81 trillion ($39.99 billion) as of 2014. It has 875 operating domestic branches, one branch in Hong Kong, and 2,591 ATMs and 61 cash accept machines nationwide. – Rappler.com
$1 = P45.26