Author Topic: For Sale: Export and Industry Bank  (Read 596 times)

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For Sale: Export and Industry Bank
« on: September 22, 2010, 01:40:16 AM »
Regulators are not prepared as yet to give its final approval on the sale of the assets of Export and Industry Bank to Banco de Oro Universal Bank even as the shareholders of both lenders have come to an agreement.

Philippine Deposit Insurance Corp.(PDIC) president Jose “Jopot” Nograles on Tuesday said that while the shareholders of both banks might have given their respective management teams the power to consummate the sale, the regulator’s approval should soon follow.

Both the PDIC and the Bangko Sentral ng Pilipinas have to signify their assent to the sale of EIB assets to BDO, which will happen only upon meeting of certain conditions.

“The Export and Industry Bank as well as Banco De oro need to meet certain terms and conditions before we can act on their proposal,” Nograles said in a text message.

The terms and conditions were not specified but Nograles made it clear the asset purchase by BDO cannot be made basis for assent on the part of the PDIC at this point.

On Monday, EIB shareholders approved and confirmed the sale of all the bank’s assets as well as the assumption of all its liabilities by BDO, mindful that none of its shareholders will benefit from the transaction in accordance with strictures set by both the PDIC and BSP.

The Philippine Stock Exchange on Tuesday also said the indefinite suspension of the trading of EIB shares in the market would be lifted on Monday next week, Sept. 27.

EIB shares have not been allowed to trade for more than a year already, in part as consequence of the bank’s request for such suspension.

EIB has used the time to craft a financial rehabilitation program and find an investor that could help pay back P19 billion worth of assistance from the PDIC.

In the transaction, BDO gained P 20.6 billion worth of EIB assets plus access to some 50 of its branches but assumed P 31.6 billion in liabilities.

Kept out of the deal were the bank’s subsidiaries – EIB Savings Bank, Banclife Insurance Co. inc. and EIB Securities Inc. (PNA)

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