Union Bank of the Philippines, a unit of Aboitiz Equity Ventures, has completed the acquisition of Cebu-based lender City Savings Bank (CitySavings) for PHP5.7bn ($139m).
The deal, which has already been approved by the board of directors of UnionBank, has also received approval from the Bangko Sentral ng Pilipinas, the apex bank of the country.
The board’s approval follows the central bank clearance to UnionBank’s offer to purchase 194,371 common shares of CitySavings from AEV and Pilmico Foods, reported Business Mirror.
UnionBank chairman and chief executive officer Justo Ortiz was quoted by the Business Mirror as saying that CitySavings’s business model provides it with a chance to boost its customer franchise.
Under the terms of the acquisition, Union Bank acquired 99.54% of CitySavings, along with its 32 offices, from the parent company AEV and Pilmico Foods Corp.
Following completion of the transaction, the acquired conglomerate will retain its separate corporate entity including the company name as well as its brand identity of simple and straightforward banking.
Set up in 1966, CitySavings manages a workforce of more than 300 staff.