Union Bank sets tender offer for iBank shareholders

Union Bank of the Philippines is allotting P157.17 million for the acquisition of shares held by minority shareholders in International Exchange Bank (iBank). This is in compliance with the tender offer rule, which requires a company that has bought 35 percent of another firm to buy out the other shareholders on the same terms. In a disclosure to the stock exchange Monday, Union Bank senior vice president and general counsel Fe B. Macalino said the amount involves 3.69 million shares or 1.52 percent of the iBank's total outstanding capital stock, priced at P42.50 apiece. The tender offer period would run from June 28 to July 28. Once the tender offer is completed, Union Bank expects the merger with iBank to be finalized on September 5. On June 5, Union Bank announced that it was buying 98.8 percent of iBank for P13.4 billion from JTKC Equities Inc., iVantage Corporation, Razon Industries Inc., Greenhillls Properties, Inc., and Philippine Realty and Holdings Corporation. A listed company since 2004, iBank provides products and services such as deposits, cash management services, commercial and consumer loans, trade finance facilities, domestic and foreign fund transfers, foreign exchange and trust services. It caters primarily to corporations and individuals belonging to the Class A, B and upper C markets. Meanwhile, Union Bank is a partnership among the Aboitiz Group, Insular Life and Social Security System. It started operations in 1981 and became a commercial bank by January 19, 1982. In July 1992, UnionBank was granted the license to operate as a universal bank.-GMANews.TV