The Bangko Sentral ng Pilipinas (BSP), through a Monetary Board Resolution, has approved the planned merger of Bank of the Philippine Islands (BPI) and Robinsons Bank Corporation (RBC).
In a disclosure to the Philippine Stock Exchange (PSE), Ayala-led BPI said that the BSP approved the merger last Dec. 15.
BPI also said after receipt of all necessary corporate and regulatory approvals, the shareholders of the Gokongwei-owned RBC will collectively hold approximately six percent of the resulting outstanding capital stock of BPI.
The basis of the exchange is RBC's book value as of June 30, 2022 valued at P25.91 billion and BPI's book value per share as of June 30, 2022 valued at approximately P82.52.
Upon the effectivity of the merger, BPI will issue to the shareholders of RBC, Robinsons Retail Holdings Inc. and JG Summit Capital Services Corporation through parent company JG Summit Holdings Inc. about 314 million primary BPI common shares. In exchange, BPI will absorb the net assets of RBC.
BPI said the merger will allow it to unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, at the same time, by capitalizing on BPI’s expertise and network, enhance the overall banking experience of RBC customers.
BPI will be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group.
RBC’s products and services cater to its corporate, commercial, and retail clients through its 189 branches and branch-lite units (including 14 branches and 14 branch-lite units of its subsidiary, Legazpi Savings Bank), 354 ATMs, and online and mobile banking channels.
As of June 30, 2022, RBC has total assets of P175.9 billion, including net loans and receivables of P102.4 billion, and total liabilities of P156 billion, including deposits of P139 billion.
“We are excited about this transaction and believe that this Merger exemplifies BPI’s strategic effort to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group,” BPI President and CEO Jose Teodoro Limcaoco said earlier.
He added that, “we plan to effect a smooth transition and integration of RBC and its customers into BPI. Together, we aim to maintain quality banking services and offer additional best-in-class and innovative products to our expanded client base.”
“We are also keen on strengthening our ties with the Gokongwei Group even more through various collaboration opportunities across the Gokongwei Group’s vast ecosystem,” Limcaoco noted.