Global Bank has completed the acquisition of 99.972% of the shares of Banco Panameño de la Vivienda for a consideration of $150.9m in cash and $52m in GB Group stock.
Global Bank had signed the purchase agreement with Grupo Mundial Tenedora for the acquisition in September this year.
The purchase price may increase by $12m in cash and $8m in GB Group stock subject to terms and conditions set forth in transaction documents.
The acquisition will bring more than $1.8bn in assets, 39,000 customers and a network of 11 branches to Global Bank’s $6.5bn assets and over 165,000 customers, spread across 35 branches.
Global Bank will now be able to provide new services, financial products to further solidify its banking platform.
Global Bank CEO Jorge Vallarino Strunz said: “Today we begin a new stage in our growth strategy and reaffirm our commitment to Panama’s economic growth by implementing strategies that contribute to the development of local financial markets.
“The merger of both entities will allow for greater customer acquisition, better customer experience, and will create new opportunities for growth and development for the staff of both banking entities.
“We would like to welcome employees, customers and suppliers of Banvivienda to the Global Bank family. We are very proud that they are part of our team. Together we will strengthen and continue to grow our organization.”
Banvivienda will become a wholly-owned subsidiary of Global Bank. Until further notice, Banvivienda customers will continue to be banked exclusively through Banvivienda’s online banking platform, 11 branches and 23 ATMs throughout the country.
Banvivienda is a Panamanian bank established in 1981. The bank initially focused on residential mortgage loans and later transitioning to become a universal model bank, offering several financial products to its customers. Presently, the bank operates from 11 branches, 24 ATMS and 391 employees.
For the fiscal year ending this 31st December, Banvivienda estimates $18.4bn in total assets, $1.34bn in gross loans, $176m in shareholders equity and a net income of $17.1m.