SMC retirement fund tagged as Bancommerce stake buyer
DIVERSIFYING conglomerate San Miguel Corp. (SMC) confirmed on Tuesday that it is consolidating its majority ownership in midsize lender Bank of Commerce (Bancommerce) under its retirement fund.
This follows a previous announcement that subsidiary San Miguel Properties Inc. (SMPI) is selling its 31-percent stake in the commercial bank. The rest of the group’s shares are held by the San Miguel Corp. Retirement Plan (SMCRP).
In a text message on Tuesday, SMC president and chief operating officer Ramon S. Ang identified SMCRP as the buyer of the 31-percent stake from SMPI. The acquisition bring’s the fund’s ownership to 51.1 percent.
“The sale is subject to regulatory approval,” SMPI noted in its disclosure yesterday. SMC officials could not be immediately reached for comment.
Analysts said the move was in line with SMC’s plan to simplify the ownership structure of the bank. Bancommerce held total assets worth P109.03 billion and P92.93 billion in deposits for the first nine months last year. During the period, it reported a net income of P944 million.
Ang earlier committed to strengthen the bank and make it a major player in the industry. He likewise pointed to a possible listing on the exchange in the future.
BANCOMMERCE CONTINUES ITS SUPPORT FOR UA&P’s MA- EDUCATIONAL LEADERSHIP
Bank of Commerce continues to support the Values Education Program for leaders in public schools—master teachers, department chairs and principals—through the University of Asia & the Pacific’s Master of Arts in Educational Leadership (MAEL). Last February 24, the Bank held a simple check turnover ceremony at the Head Office Executive Lounge to formalize its commitment to the program.
Representing the Bank were Pres. Raul de Mesa, EVP Art Manuel and VP Noel Cortez. The check was received by Dr. Severina Villegas, retired MAEL Program Director, Celerino Tiongco, Dean of the UA&P’s School of Education & Human Development, and Dr. Gladys Golo, faculty member of the UA& P’s School of Education.
February 16, 2010
SMC unit to sell 31% Bancommerce stake to affiliate firms
By: Zinnia Dela Peña (The Philippine Star)
February 16, 2010
MANILA, Philippines - San Miguel Properties Inc. (SMPI), the real estate development unit of diversifying food and beverage conglomerate San Miguel Corp., is selling its 31- percent interest in Bank of Commerce for P3.1 billion.
In a disclosure to the Philippine Stock Exchange, SMPI said its board approved the sale of its stake in Bancommerce to “various interested buyers.”
In an interview with The STAR yesterday, Bancommerce president and CEO Raul de Mesa clarified that the buyers are also companies within the San Miguel Group.
He added that the bank’s board of directors also recently approved the increase in capitalization to P10 billion, out of which P6.9 billion would be by way of the issuance of 40 million new common shares at P173 each.
The sale, however, is still subject to regulatory approval, SMPI said.
San Miguel’s retirement fund owns another 20-percent interest in Bancommerce, making the San Miguel Group the majority owner of the medium-sized commercial bank.
Analysts said San Miguel needs cash to fund its acquisitions, particularly in heavy industries such as power, mining and infrastructure.
PhilRatings Services Corp. recently upgraded the credit issuer rating of the bank due to the its improving capital position and San Miguel’s acquisition of a controlling stake.
PhilRatings said the San Miguel Group’s majority ownership has strengthened Bancommerce’s competitive position given the opportunity of servicing dominant and leading domestic companies which belong to the group. The entry of San Miguel has also led to the expansion in Bancommerce’s business as the bank has been able to provide its products and services to the companies, as well as the suppliers/dealers/distributors of the companies within the group, PhilRatings said.
PhilRatings added that the controlling interest of San Miguel in the bank provides Bancommerce a greater opportunity to further expand its volume of business. This will result from the major projects being undertaken by Bancommerce to generate additional revenue and funding streams from partners and consumers of the companies within the San Miguel Group.
San Miguel recently raised P7.3 billion from the sale of preferred shares through a private placement. Proceeds from the private placement would be used to fund new ventures and acquisitions.
(lifted from Philippine Star - Business Section February 16, 2010)
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