BDO finalizing deal to acquire Export Bank

By Doris Dumlao
Philippine Daily Inquirer

BANCO DE ORO UNIBANK (BDO) IS finalizing a deal to acquire Export and Industry Bank as the latter’s controlling stockholders have agreed “in principle” to a buyout by the country’s biggest bank.

Two banking sources familiar with the transaction confirmed to the Inquirer that the purchase of Export Bank by BDO was now nearly a “done deal” and awaiting only the formal approval from the two banks’ respective board of directors.

One source said BDO, which had a series of merger and acquisition deals over the years, has conducted a due-diligence audit on Export Bank and was quick in presenting an offer. The terms of BDO’s takeover has been finalized, another source said.

A deal will likely be signed within the month or by November, at latest, the sources said. The purchase will involve up to 100 percent of the shares of stock of Export Bank. About 90 percent of the bank’s shareholders are represented in the board, while the remaining 10 percent will have the option to accept a prospective tender offer by BDO. But while the buyout could involve almost all of Export Bank’s shares, certain assets will be carved out of the transaction such that BDO would take over only the core commercial banking assets.Read More...

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