<article>US-based mid-market focussed private equity firm <a style="color: #000080;" href="http://www.tpg.com/platforms/tpggrowth" target="_blank">TPG Growth</a> &#8211; part of TPG &#8211; is acquiring 40 per cent stake in <a style="color: #000080;" href="http://www.onenetworkbank.com.ph" target="_blank">One Network Bank (ONB)</a>, a rural bank subsidiary of <a style="color: #000080;" href="https://www.bdo.com.ph" target="_blank">BDO Unibank Inc</a>.</article>

US-based mid-market focussed private equity firm <a style="color: #000080;" href="http://www.tpg.com/platforms/tpggrowth" target="_blank">TPG Growth</a> &#8211; part of TPG &#8211; is acquiring 40 per cent stake in <a style="color: #000080;" href="http://www.onenetworkbank.com.ph" target="_blank">One Network Bank (ONB)</a>, a rural bank subsidiary of <a style="color: #000080;" href="https://www.bdo.com.ph" target="_blank">BDO Unibank Inc</a>.
ONB is based in Davao City and has more than 100 branches and offices. Following the transaction, BDO will retain approximately 60 per cent ownership in ONB.
In July last year, BDO acquired ONB for over $144.5 million.
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BDO president and CEO Nestor Tan said, the bank looks forward to working with TPG to accelerate ONB’s expansion.
&#8220;Through this partnership, ONB will benefit from TPG’s global experience in financial services, especially in developing markets,&#8221; Tan said, noting future product developments are targeted to cover the under-served market segments.
BDO disclosed the new phase of ONB’s growth is aligned with the Bangko Sentral ng Pilipinas’s (BSP) efforts to improve financial inclusion in the country. The listed commercial bank has the country’s largest branch and ATM network.
TPG head for Southeast Asia Ganen Sarvananthan cited that they aim to boost the impressive foundation that BDO and ONB have built through the years.
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&#8220;We look forward to bringing all that we’ve learned into a collaborative partnership and expanding the impact they’ve already created,&#8221; Sarvananthan said.
He said TPG has worked with many highly impactful financial services businesses across Asia and the firm&#8217;s insight in the sector has come from years of identifying and developing the full potential of strong businesses.
Across its platform, TPG has invested in a wide variety of financial services companies throughout Asia, including Indonesian financial institution BFI, India-based microfinance institution Janalakshmi, Shenzhen Development Bank in China, and Union Bank of Colombo in Sri Lanka.
TPG has partnered with more than 15 financial services companies across Asia. In 2008, the US-based firm worked with Bank Tabungan Pensiunan Nasional (BTPN) of Indonesia to open more than 550 new branches and create a micro-loan business that grew the bank’s customer base to more than two million group lending program clients and 250,000 micro, small, and medium enterprises (MSMEs).
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BDO&#8217;s last trading price decreased 0.09 per cent or P0.100 to close at P108.60.
The transaction, whose financial terms remain undisclosed, is subject to closing conditions and regulatory approvals.
It was TPG&#8217;s second investment in a Philippine entity. The company&#8217;s first was in 2014 together with Malaysia&#8217;s state investor <a style="color: #000080;" href="http://www.khazanah.com.my/Home" target="_blank">Khazanah Nasional Bhd</a>, when both bought almost a 20 per cent stake in mass housing firm <a style="color: #000080;" href="http://8990holdings.com">8990 Holdings Inc</a> for about P5.8 billion.
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 TPG Growth is acquiring 40 per cent stake in One Network Bank (ONB), a rural bank subsidiary of BDO Unibank Inc.

TPG Growth buys 40% stake in rural bank unit of Philippines' BDO

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TPG Growth buys 40% stake in rural bank unit of Philippines' BDO

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