Three banks may bid for UCPB stake

Three Philippine banks said they are considering bids for the government's majority stake in unlisted, medium-sized lender United Coconut Planters Bank – a deal expected to be worth at least P16.1 billion.

 

The Finance Department said on Sunday that in addition to paying for the government's 73.9 percent stake – equivalent to around P1.1 billion – the winning bidder must inject at least P15 billion in capital.

 

Security Bank Corp., the country's ninth largest lender by assets, Rizal Commercial Banking Corp. (RCBC) and Robinsons Bank Corp, a unit of conglomerate JG Summit Holdings Inc. are weighing bids, senior executives at the lenders told Reuters on Monday.

 

UCPB is the 12th largest lender in the Philippines, with more than 200 branches and assets worth nearly P260 billion, according to central bank data.

 

The Philippines, Southeast Asia's fifth largest economy, is overcrowded with around 700 banks, mostly minnows. That compares with the 120 banks in Indonesia, the region's largest economy and double the population of the Philippines.

 

Interested firms will have to submit documents asking to be qualified as a bidder between June 2 and June 7. Qualified firms will have until Sept. 18 to submit bids. – Reuters