The merger between Bank of the Philippine Islands (BPI) and Robinsons Bank Corporation (RBC) has been approved by the Bangko Sentral ng Pilipinas (BSP) through a Monetary Board Resolution.
According to a disclosure to the Philippine Stock Exchange (PSE) by Ayala-led BPI, the BSP approved the merger on December 15th. After receiving all necessary corporate and regulatory approvals, the shareholders of 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, about 314 million primary BPI common shares. In exchange, BPI will absorb the net assets of RBC.
The merger will allow BPI to unlock synergies across various products and service platforms and expand the customer and deposit base of both banks through the merged entity. BPI also aims to enhance the overall banking experience of RBC customers by capitalizing on its expertise and network.
BPI President and CEO Jose Teodoro Limcaoco expressed excitement about the transaction, stating that the merger exemplifies BPI’s strategic effort to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group. Limcaoco also emphasized the plan to maintain quality banking services and offer additional best-in-class and innovative products to the expanded client base.
RBC’s products and services cater to corporate, commercial, and retail clients through its 189 branches and branch-lite units, 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.
The merger signifies a strengthening of ties between BPI and the Gokongwei Group, with plans for collaboration opportunities across the Gokongwei Group’s ecosystem.
