SEC approves China Banking Savings, Plantersbank merger

The Securities and Exchange Commission (SEC) gave the green light for the merger of China Bank Savings Inc. (CBSI) and Planters Development Bank (Plantersbank).

CBSI, through its parent company China Banking Corp. (China Bank), said in a disclosure to the Philippine Stock Exchange (PSE) on Monday that the merger has already been approved by the SEC.

"Please be informed that our Executive Committee noted this afternoon, the approval by the Securities and Exchange Commission on 17 December 2015 of the Articles and Plan of Merger by and between China Bank Savings Inc. and Planters Development Bank," China Bank told the PSE.

The lender in August said it has already received the go signal from the Bangko Sentral ng Pilipinas (BSP).

“This is to inform the Exchange of our receipt on 19 August 2015 of the Bangko Sentral ng Pilipinas letter, informing the bank of the Monetary Board’s final approval on 14 August 2015 of the merger between China Bank Savings, Inc. (CBSI) and Planters Development Bank (Plantersbank), with CBSI as the surviving entity,” it said in an earlier filing.

China Bank earlier this month said it will infuse P2.0 billion to CBSI following the SEC approval.

"The capital infusion will be done upon receipt from the Securities and Exchange Commission of its approval of the merger of CBSI and PDB and the increase in CBSI authorized capital," the Sy-led bank said in a separate filing.

This will bring the combined capital position of the companies to P6.1 billion.

"The enhanced capital position will support future business growth of CBSI/PDB in 2016 as it continues to expand in the consumer and SME (small and medium-sized enterprises) sectors," China Bank said..

China Bank saw its consolidated net income rise by 14 percent to P2.51 billion driven by a "strong growth in its core businesses" in the first half of the year. —Jon Viktor D. Cabuenas/KG, GMA News