China Bank to raise stake in thrift bank

MANILA, Philippines - China Banking Corp. has moved to fully gobble up the former The Manila Banking Corp., ratifying a plan to buy out the minority shareholders of the former Puyat-owned lender. In a disclosure to the stock exchange, China Bank yesterday said its board of directors approved on Wednesday the acquisition of 45,486 shares of China Bank Savings, Inc., which replaced Manila Bank after it was sold to the group of SM mall magnate Henry Sy in June 2007. The 2007 deal involved the purchase of the Puyat family’s 87.5% stake in the thrift bank, which paved a full takeover by the Sy group. China Bank later launched an offer to acquire the rest of shares, which allowed it to raise its holdings in the former Manila Bank to 94.07%. China Bank’s buying spree did not end there and yesterday’s disclosure meant it would acquire some more — a fraction of 1% of the thrift bank’s total 8.794 million common shares — said Alexander C. Escucha, China Bank first vice president. "The board gave the authority to continue buying. If anybody would still want to come forward and offer, we will consider," he told BusinessWorld. China Bank’s branch network has grown to 214 to date from the 155 before the purchase of Manila Bank. Out of the 75 branch licenses of Manila Bank, 46 were used by China Bank, Mr. Escucha said. — Maria Eloisa I. Calderon