Commission Decision No. 12-M-010/2018
Acquisition by City Savings Bank, Inc. of Shares in Philippine Resource Savings Bank Corporation
City Savings Bank, Inc. (“City Savings”), the thrift banking arm of Union Bank of the Philippines, entered into a Share Purchase Agreement on 29 December 2017 (“Transaction”) with all of the common shareholders (the “Sellers”) of Philippine Resources Savings Bank Corporation (“PR Savings Bank”).
City Savings is the 5th largest thrift bank in the Philippines in terms of assets. It provides a range of mass market finance products and services such as salary loans to public and private school teachers, pension loans to Government Service Insurance System (“GSIS”) and Social Security System (“SSS”) pensioners, Overseas Filipino Workers (“OFW”) loans and traditional deposit products. On the other hand, PR Savings Bank and the Sellers are members of, or associated with, the ROPALI Group of Companies – a conglomerate engaged in motorcycle and agricultural machinery trade. PR Savings Bank is based in Isabela and is the 14th largest thrift bank in the country. It is primarily engaged in motorcycle and agri-machinery loans and some teachers’ salary loans.
The transaction involves the purchase of One Hundred Twenty-Seven Million Seven Hundred Twenty-Three Thousand Three Hundred Eight-Five (127,723,385) common shares (“Subject Shares”) of the capital stock in PR Savings Bank by City Savings from the Sellers. The Subject Shares represent One Hundred Percent (100%) of the issued and outstanding common shares of PR Savings Bank, which is approximately 66.27% of its total issued and outstanding capital stock. City Savings will eventually purchase all of the remaining preferred shares of PR Savings Bank, and thereafter, merge with the latter (with City Savings as the surviving entity), upon securing the approvals of the pertinent regulatory government agencies.