Bank of Tokyo Mitsubishi UFJ will buy a 20% stake in the Philippines’ Security Bank for nearly PHP37 billion (USD$774 million), the Filipino lender said on Thu, Jan 14.
The transaction will be the largest equity investment by a foreign lender in a Philippine bank, according to Bloomberg News.
Security Bank said it accepted the offer from Japan’s largest bank to buy 150.7 million new common shares at PHP245 each and 200 million preferred shares at PHP0.10 each.
The bank’s shares closed at PHP135 in Manila trading on Wed, Jan 13. Trading was suspended Thursday prior to the announcement.
The deal, approved by the Security Bank board on Thu, Jan 14, will be submitted to regulators for approval, the bank said in a disclosure to the stock exchange.
The Philippines loosened rules on foreign ownership of banks in 2014, sparking interest from overseas lenders.
Security Bank recently embarked on a rebranding campaign to push its retail services and expand its market share, slashing transaction fees and employing celebrity endorsers. (Agence France-Presse)
