Security Bank sells Diners Club rights to BDO Unibank

SB Cards Corp. has sold its rights as the exclusive issuer and acquirer of Diners Club International (DCI) credit cards in the Philippines to BDO Unibank Inc.

In a disclosure to the Philippine Stock Exchange Tuesday, the credit card subsidiary of Security Bank Corp. said BDO accepted the offer involving the DCI franchise

BDO and SB Cards have signed an agreement covering the deal.

"The acquisition includes SB Cards’ existing Diners Club portfolio and its cardholder base," the Security Bank said.

The transaction value is not really a very big amount, Ma. Cristina Tiongson, SB Cards president and Security Bank executive vice president, told GMA News Online. She declined to name the price, noting transaction is still ongoing and there are still things that needed to be settled towards consummation.

"During the interim period, we will still provide systems and operational support to ensure the seamless transition of the business to BDO, Tiongson said in a separate joint statement with BDO Unibank.

The transaction is expected to be completed within two to three months and is subject to certain approvals.

"The move is a strategic decision to focus on our existing card issuing business with MasterCard as our main credit card offering which we will actively expand and strengthen for our customers.

"Our card business remains to be a critical leg of our Retail Bank, a crucial driver of the overall growth strategy of Security Bank," Tiongson, noted.

BDO sees the partnership with DCI as a way of further strengthening its credit card business in the country.

“The Diners Club portfolio will allow us to deliver new customer benefits to our card members. SB Cards has built a quality portfolio, and we are excited to work with those card members as well as start to issue new Diners Club cards,” said Rolando C. Tanchanco, EVP of BDO. – VDS, GMA News