Thursday, June 02, 2011
MANILA, Philippines (Mindanao Examiner / Jun 2, 2011) – Security Bank announced on Thursday its acquisition of 98% of outstanding capital stock of Premiere Development Bank and its intention to acquire the remaining 2% of outstanding shares.
It said the transaction was priced at P1.3 billion or 1.6x book value of Premiere Bank as of December 2010.
Premiere Development Bank is a private development bank incorporated in 1960 by Dr Procopio Reyes under the name of Pasay City Development Bank. Its head office is located at EDSA corner Magallanes Avenue in Makati City.
The major selling shareholders of Premiere Bank include the Puyat-Reyes Family, the Madrigal-Gonzales Family and the Rohatyn Group, a New York-based private investment firm specializing in emerging markets with $3 billion in funds under management.
Security Bank’s acquisition of Premiere Bank is part of its strategic plan to expand its branch network, build its loan portfolio and expand its customer base.
“Combining our people and resources, our two banks will continue to grow and provide the exceptional customer service we’ve always been known for in the banking community,” Alberto Villarosa, Security Bank President and CEO, said in a statement sent to the regional newspaper Mindanao Examiner.
In a separate statement, Herminio Famatigan, Jr., Premiere Bank President and CEO, said: “The sale of Premiere Bank to Security Bank marks the culmination of a very effective partnership between The Rohatyn Group, the Puyat-Reyes family, the Madrigal-Gonzales family, and the bank’s senior management.”
“The four-year partnership has grown Premiere Bank by three times in terms of assets and, in the process, produced considerable added value for its shareholders. At this stage of Premiere Bank’s development, its shareholders are best served if the bank becomes part of a larger banking franchise.”
The acquisition of Premiere Bank will complement Security Bank’s existing operations with a loan portfolio estimated at P3 billion and 20,000 loan customers, 37,000 depositors with an estimated P4.5 billion in deposits.
Premiere Bank’s branch network is comprised of 21 branches in and around Metro Manila and 17 branches in the provinces of Bulacan, Rizal, Laguna, Cavite and Batangas.
Villarosa said: “The purchase of Premiere Bank would immediately expand our branch network by 30% to 170 branches and effectively increase our presence and competitive stance in the consumer, small and mid-sized business segments.”
The acquisition comes at the heels of Security Bank’s recently forged joint venture establishing a leasing company with Marubeni Corp. of Japan.
Security Bank is celebrating its 60th anniversary this year.