UnionBank of the Philippines has announced that the acquisition of Citibank, N/A, Philippines Branch has been approved.
According to a report filed with the SEC, the Board of Directors of UnionBank of the Philippines approved the acquisition of Citibank, N.A, Philippines Branch at its special meeting on December 23, 2021.
To fund the acquisition, the Board authorized the issuing of additional shares from UnionBank’s unissued authorized capital stock via a stock rights offering (“SRO”) to all existing shareholders in the amount of up to PHP 40 billion.
The SRO revenues will be used to acquire Citigroup’s consumer banking operations in the Philippines. According to UnionBank, its shareholders – Aboitiz Equity Ventures, Inc., The Insular Life Assurance Co., Ltd., and Social Security System – have agreed to fully subscribe to their respective allocations as well as any SRO shares not taken up by other shareholders.
Citibank’s credit card, personal loans, wealth management, and retail deposit operations, as well as its real estate in Citibank Square in Eastwood, three full-service bank branches, five wealth centers, and two bank branch lites, are all included in the sale, according to Inquirer.net.