Aboitiz-led Union Bank of the Philippines (UnionBank) and the ATRAM Group have entered into an investment agreement to merge their respective trust subsidiaries.
In a disclosure to the Philippine Stock Exchange (PSE), UnionBank announced that it will hold a 27.5 percent ownership stake in ATR Asset Management Inc. (ATRAM) upon completion of the transaction. Existing ATRAM shareholders will retain the remaining 72.5 percent.
The investment will result in a merger of Union Bank Investment Management and Trust Corporation (UBIMTC) and ATRAM Trust Corporation (ATC), with ATC as the surviving entity.
"This merger aims to leverage the strengths of both organizations, creating a robust platform for growth and innovation in the asset and wealth management sector," the bank stated.
The combined entity will be a leading player in the trust industry with over P485 billion in assets under management (AUM), significantly increasing scale and capabilities.
By integrating UnionBank's digital expertise with ATRAM's innovative asset management solutions, the partnership aims to provide clients with a diverse range of high-quality financial products.
UnionBank is a leading retail bank and pioneer in digital banking, serving over 15 million clients. ATRAM has democratized investing by providing access to over two million retail investors through its digital platforms and partnerships.
"This partnership allows us to strengthen our offerings and provide even more tailored services to our customers, especially our larger wealth client base acquired from Citibank Philippines' consumer banking business," said UnionBank President and CEO Edwin R. Bautista.
"We are committed to ensuring they have access to the best financial solutions available while also creating broader career opportunities for our employees in a larger and very dynamic organization," he added.
ATRAM Chief Executive Officer Michael V. Ferrer said, "this merger represents a milestone for ATRAM as we align with UnionBank, a leader in digital innovation. Together, we will change the game and redefine the asset management landscape in the Philippines. Our clients will benefit from an expanded suite of investment solutions, enhancing the value and service we deliver."
To implement the merger, UnionBank will acquire 82.97 million shares of ATR Asset Management Inc. (AAMI) at P3.61 per share while selling all 300 million shares of its wholly-owned subsidiary, UBIMTC, at P1 per share.
AAMI, a subsidiary of the ATRAM Group, provides asset management and investment advisory services. It manages portfolios that include mutual funds, trust assets, insurance portfolios, and real estate for both proprietary and third-party clients.
UBIMTC is a full-service trust corporation offering bespoke trust and investment solutions such as trusteed accounts, investment management services, escrow agency, custodianship, and other fiduciary services.
UnionBank will pay P67.5 million to ATRAM for 25 million common shares in AAMI and acquire 57.97 million AAMI shares from AAMI for P232.5 million. This will be funded by the proceeds from the sale of UBIMTC, worth P300 million.
The investment and merger are subject to regulatory approvals and a rigorous evaluation process to ensure seamless integration that prioritizes client service and employee well-being.
AlphaPrimus Advisors acted as financial advisor to ATRAM, while Exchange Equity Partners served as financial advisor to UnionBank.
The ATRAM Group is a leading independent asset and wealth management firm serving institutional and retail clients. It provides innovative products and unique customer experiences delivered through technology-enabled platforms. Its goal is to secure its clients’ financial future.
As a multi-awarded asset management company, ATRAM strives to deliver exceptional results and personalized solutions tailored to clients' unique needs.
ATRAM is a pioneer in global feeder funds, alternative investment products, digital investment and pension platforms, including the Personal Equity Retirement Account (PERA). It continuously pushes boundaries to redefine the industry through innovation and product development.
ATRAM is currently owned by three shareholder groups: ATR Holdings, Inc., BHF Partners Holdings, Inc., and A. Soriano Corporation through its parent company, ATRAM Investment Management Partners Corporation, and subsidiary, ATR KimEng AMG Holdings, Inc.
ATRAM operates through ATRAM Trust Corporation and ATR Asset Management Inc., with its headquarters located in 8 Rockwell Building, Rockwell Center, Makati City.