UnionBank approves acquisition of Citibank PH branch

UnionBank of the Philippines has announced it has approved the acquisition of Citibank, N/A, Philippines Branch.

Based on a report filed to the SEC, the Board of Directors of UnionBank of the Philippines, at its special meeting on December 23, 2021, has approved the acquisition of Citibank, N.A, Philippines Branch.

To fund the acquisition, the Board approved the raising of additional capital of up to PHP 40USD 0.68INR 58EUR 0.65CNY 5 billion through the issuance of additional shares from UnionBank’s unissued authorized capital stock via a stock rights offering (“SRO”) to all existing shareholders.

The proceeds of the SRO will be utilized for the acquisition of Citigroup’s consumer banking business in the Philippines. UnionBank says that its shareholders – Aboitiz Equity Ventures, Inc., The Insular Life Assurance Co., Ltd. and Social Security System – are committed to fully subscribe to their respective allocations as well as to any SRO shares not taken up by other shareholders.

According to Inquirer.net, the transaction includes Citibank’s credit card, personal loans, wealth management, and retail deposit businesses, as well as its real estate in Citibank Square in Eastwood, three full-service bank branches, five wealth centers, and two bank branch lites.